Palantir (NASDAQ: PLTR | PLTR Price Prediction) and Snowflake (NYSE: SNOW) both posted quarters that reinforce their claim on the enterprise AI stack. Palantir reported Q1 2026 on May 4, 2026, growing revenue 84.7% year-over-year. Snowflake followed on May 27, 2026 with 33.5% growth.
AIP Runs Hot. Cortex Hits an Inflection.
Palantir’s quarter was carried by a U.S. commercial book that grew 133% YoY to $595 million, with U.S. government revenue climbing 84% to $687 million. AIP, the Artificial Intelligence Platform, keeps pulling Fortune 500 buyers into multi-year contracts.
CEO Alex Karp framed the moment 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.” Deal velocity backs the tone: 206 deals ≥$1M closed in the quarter.
Snowflake’s story is quieter but arguably more foundational. Product revenue reached $1.33 billion, with net revenue retention at 126% and RPO at $9.21 billion, up 38% YoY.
Cortex Code sits inside 7,100+ accounts, and Snowflake Intelligence accounts more than doubled sequentially. CEO Sridhar Ramaswamy called it “the strongest sequential dollar growth in our history.”
| Business Driver | Palantir | Snowflake |
| Main Growth Engine | AIP for U.S. commercial + defense | Cortex + Agentic data platform |
| Customer Model | Large enterprise + government contracts | Consumption-based across Global 2000 |
| Q1 Operating Margin (GAAP) | 46% | Operating loss of $326M |
One Prints Cash. One Is Buying the Future.
Palantir is already GAAP-profitable, generating $925 million in free cash flow and raising FY2026 revenue guidance to $7.65 to $7.66 billion.
Snowflake is spending aggressively to widen the moat: a $6 billion multi-year AWS agreement, a deepened OpenAI partnership, and acquisitions of Natoma, Observe, and TensorStax. That capital deployment shows up as heavy stock-based compensation and continued GAAP losses, but non-GAAP operating margin guidance moved to 13.5%.
The market has priced these paths very differently. PLTR is down 30.77% year-to-date even as fundamentals accelerate, weighed down by a P/E near 174 and insider selling. SNOW is up 33.7% YTD, with 44 buy ratings against 6 holds.
The Next Test Is Durability of the AI Spend
For Palantir, I will be watching whether U.S. commercial can sustain triple-digit growth against the $4.92 billion remaining deal value already booked.
For Snowflake, the tell is whether Cortex and Snowflake Intelligence turn consumption into a durable second growth curve while operating margins keep expanding. Michael Burry’s mid-year criticism of PLTR as “a sand castle supported only by AI applications narrative” still hangs over the retail conversation.
Where the Risk/Reward Skews at These Prices
Personally, I find Snowflake the more balanced setup right now. You are paying for a broad consumption platform with 790 Forbes Global 2000 customers, expanding margins, and an AI product cycle that is clearly landing.
Palantir’s business is better than its stock chart suggests, and Karp’s execution is hard to argue with, but a P/E near 174 asks a lot even from 84% growth.
If you want the higher-variance AI bet with government optionality, PLTR still fits. For readers who prefer growth that can be underwritten without stretching for the multiple, SNOW screens as the more defensible setup on current numbers.
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