Palantir (NASDAQ: PLTR) Posts Jaw-Dropping Rule Of 40 Score, But A 33X Sales Multiple Demands Perfection

Exceptional operating metrics and a punishing valuation are now pulling in opposite directions for one of the AI software sector’s most closely watched names. Palantir Technologies (NASDAQ: PLTR) recorded a Rule of 40 score of 158% in the third quarter of 2026, nearly four times the 40% threshold that investors typically regard as the mark of a high-performing software business. That figure has climbed steadily throughout the year, rising from 145% in the first quarter to 155% in the second before reaching its latest peak in Q3. The Rule of 40 metric sums a company’s revenue growth rate and adjusted operating margin, making PLTR’s 96% year-over-year revenue expansion and 62% adjusted operating margin its two primary engines. U.S. commercial revenue was the standout, surging 148% year over year to reach $984 million as enterprise customers accelerated their adoption of the company’s Artificial Intelligence Platform. Government-side demand proved equally robust, with U.S.

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