Salesforce CEO Praises Palantir as it Closes $950M UK Defense Deal

Palantir Technologies  (PLTR)  recently reached a milestone that few AI businesses or investors expected.

The business software giant, long renowned for its clandestine military contracts and high-touch analytics platform, finished Sept. 19 at $182.39, up 3% on the day, and now has a market capitalization of $432.51 billion. 

Palantir outperforms Salesforce  (CRM) , despite having just a tenth of the revenue.

Speaking at Goldman Sachs' Communacopia + Technology conference, Salesforce CEO Marc Benioff expressed both respect and irritation.

“Oh my gosh. I am so inspired by that company,” he told CNBC. “Not just because they have 100 times multiple on their revenue, which I would love to have too. Maybe it’ll have 1,000 times on their revenue soon.”

Palantir’s impressive performance by the numbers:

• Q2 revenue: $1.03 billion (up 48% YoY)
• Net income: $327 million (up 144%)
• YTD share performance: +300%
• 52-week low: $35.71
• 52-week high: $190.00
• P/E ratio: 606.11

All this comes as Palantir announces its largest-ever foreign contract, a £750 million ($950 million) arrangement with the UK Ministry of Defence that will last five years and increase Palantir's AI footprint in defense, health, and police.

The price, growth pace, and worldwide reach are causing even software incumbents to pay heed – and reconsider what AI leadership looks like in practice, despite the privacy and political concerns that come with investing in Palantir.

Palantir lands monster UK defense contract, quintuples prior deal

The contentious AI business is also making headlines internationally.

Palantir is nearing completion on a £750 million ($950 million) deal with the UK Ministry of Defence to extend its AI integration across British military, health, and law enforcement systems. 

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The five-year contract replaces an expiring three-year, £75 million contract, representing a tenfold increase that demonstrates long-term strategic commitment, apart from certain political considerations under the broader UK-U.S. "special relationship."

The UK contract is part of a larger £1.5 billion investment drive through 2030, which is estimated to create 350 new jobs. Palantir refused to comment, although the announcement coincided with President Doland Trump's diplomatic visit to the UK later this week.

Strategic optics: President Trump, timing, and tech diplomacy

The timing of the UK military expansion is not coincidental.

President Trump's visit is part of a larger push to strengthen Western AI ties, and Palantir's statement reinforces this trend. CEO Alex Karp and co-founder Peter Thiel have long positioned their company as a counterpoint to autocratic governments.

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This action also indicates a change in U.S. strategy. The Trump administration has eased AI export restrictions and facilitated data center growth. As a consequence, AI businesses such as Palantir and Nvidia are expanding at a record pace.

Wall Street has taken notice. Palantir shares are up over 19% since the start of the third quarter, and analysts estimate full-year sales to exceed $4.14 billion, up from $2.87 billion last year.

Palantir's evolution: from pullback to power play

A few years ago, Palantir was cutting down in Europe because it was having trouble with regulations, including in the UK. But now, the business is doing better than ever.

In the second quarter of 2025, sales reached $1.03 billion, while net income rose by 144% to $327 million. The U.S. commercial income almost doubled. But overseas business revenues fell a little, down 3% from the previous year. The pact with the UK could help turn that trend around.

On the other hand, international government income was up 37% last quarter. This shows that there is a lot of demand for Palantir's AI stack, particularly in defense.

A tale of two investment strategies

Benioff's words made the distinction quite evident. Salesforce is now the market leader, with a wide range of products, strong cash flow, and modest growth. 

Palantir is the new kid on the block. It offers a larger risk/reward profile, higher costs, and a stronger focus on defense.

For the time being, the market is displaying whichever model it prefers, regardless of whether there is a head-to-head contest.

So what about investors? It serves as a reminder that, in the forthcoming AI arms race, software may be as essential as hardware. 

Benioff may be laughing when he says Salesforce should charge more, but the underlying message is serious: The game is changing.

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