Microsoft, Palantir Beat on AI as $37 Billion Run Rate Faces 192 P/E Test
Updated
Updated · 24/7 Wall St. · May 15
Microsoft, Palantir Beat on AI as $37 Billion Run Rate Faces 192 P/E Test
7 articles · Updated · 24/7 Wall St. · May 15
$37 billion in annualized AI revenue and 40% Azure growth underscored Microsoft’s latest beat, while Palantir posted a faster 70% revenue gain to $1.41 billion on surging U.S. commercial demand.
The split is in the model: Microsoft is funding AI infrastructure at scale, spending $30.876 billion in quarterly capex, while Palantir runs a capital-light software business that generated $791 million in free cash flow.
$627 billion in Microsoft commercial backlog gives investors long-term visibility, whereas Palantir’s case leans on execution against FY26 revenue guidance of $7.182 billion to $7.198 billion and continued triple-digit commercial momentum.
Valuation reflects that contrast: Microsoft trades near 30 times earnings and screens as the steadier AI platform bet, while Palantir’s roughly 192 P/E leaves less room for slowdown and keeps stock-based compensation in focus.
Even after the earnings beats, MSFT was down 15.49% year to date and PLTR down 23.49%, showing investors are still weighing capex payback at Microsoft and growth durability at Palantir.
Is Palantir's deep bond with the U.S. military its greatest asset or its biggest long-term risk?
If AI can replicate any software, are physical data centers the only defensible moat left in the tech industry?