Apple (NASDAQ: AAPL | AAPL Price Prediction) and Palantir (NASDAQ: PLTR) both posted their eighth straight EPS beat this spring, but the businesses behind the numbers could not look more different.
Apple is selling more iPhone 17 units to a 2.5 billion device installed base. Palantir is signing AI deployment contracts at a pace that doubled its U.S. business. Comparing the two right now is really a question about what kind of growth you want to own.
Record iPhone Quarter Meets a Software Land Grab
Apple’s Q2 FY26 revenue hit $111.18 billion, up 16.6% year over year, with iPhone alone delivering $56.99 billion and Services setting an all-time record at $30.98 billion.
Tim Cook credited “extraordinary demand for the iPhone 17 lineup” alongside the launches of the iPhone 17e, M4 iPad Air, and MacBook Neo. Greater China revenue of $20.50 billion finally looks healthy again, which matters because that region has been the swing factor on every recent print.
Palantir’s Q1 FY26 looks like a different category of business entirely. Revenue jumped 84.7% to $1.63 billion, U.S. commercial revenue surged 133% to $595 million, and the company closed 206 deals of $1 million or more.
Alex Karp framed it bluntly: “Palantir’s Rule of 40 score has soared to 145%. We have shattered the metric, a feat matched only by other fellow AI infrastructure companies: NVIDIA, Micron and SK hynix.” The Artificial Intelligence Platform, or AIP, is doing the heavy lifting in commercial accounts.
Cash Machine vs. Compounding Software Bet
| Lens | Apple | Palantir |
| Core Bet | Hardware refresh plus Services attach | AIP rollout across U.S. enterprises |
| Growth Engine | iPhone 17 cycle, MacBook Neo | U.S. commercial, up 133% YoY |
| Capital Returns | $100B buyback, 4% dividend hike | No dividend, modest repurchases |
| Valuation | P/E around 37 | P/E around 152 |
Apple is leaning into what already works: premium hardware, expanding Services, and returning enormous cash to shareholders. Gross margin of 46.9% reflects a business that has earned the right to be boring.
Palantir is doing the opposite, plowing into a customer land grab where U.S. commercial remaining deal value sits at $4.92 billion, up 112%. The stock-based compensation bill of $201.6 million in a single quarter is a real cost of that growth, and one I do not love.
What I Want to See Next Quarter
For Apple, the test is whether Services can keep compounding at a double-digit clip and whether Apple Intelligence finally drives a measurable Services attach lift. The $45.57 billion cash pile gives Cook room to keep buying back stock even if iPhone growth normalizes.
For Palantir, I want to see if the $7.65 billion to $7.66 billion full-year guide proves conservative again. Karp has now raised guidance four straight quarters, and the $1.797 billion to $1.801 billion Q2 setup looks beatable.
Why I Lean Apple for Now, but Hold Palantir Honest
If I had to allocate fresh capital today, I would lean Apple. The valuation is demanding but defensible at 10x sales, the buyback floor is real, and a healthy China quarter removes a major overhang.
Palantir is the more exciting story, and the Rule of 40 score of 145% genuinely belongs in rare company. I just struggle to underwrite 62x sales when one bad guide could compress that multiple in a hurry.
Growth investors with tolerance for volatility may find Palantir’s setup more compelling, while investors prioritizing capital returns and lower multiple risk may find Apple’s profile more comfortable this quarter.
Top Gaining Stocks
Top Losing Stocks