Are These High-Growth Stocks the Next Palantir?

This chart highlights the financial performance of global enterprise software companies with TTM (trailing twelve months) revenue over $1 billion.

It’s based on two key financial metrics:

• Y-Axis: Year-over-Year Revenue Growth (Growth)

• X-Axis: Adjusted Operating Margin (Profitability)

There are two important benchmark lines:

• Rule of 40 Frontier: Growth + Profitability ≥ 40% — indicates a financially healthy business

• Rule of 80 Frontier: Growth + Profitability ≥ 80% — represents an elite-level company

The takeaway? The farther to the upper-right, the stronger the company. These are the rare names that are both growing fast and generating significant profits.

What Does $Palantir Technologies Inc.(PLTR)$ Position Tell Us?

Palantir stands out clearly—well above both the Rule of 40 and Rule of 80 lines.

• ~59% revenue growth

• ~35% operating margin

• Combined score: 94%

This makes Palantir one of the very few companies in enterprise software that are delivering both high growth and high profitability—a rare combination in this space.

Who Else Stands Out Near the Rule of 80 or Above the Rule of 40?

Here are some high-quality names that either approach Rule of 80 or sit comfortably above Rule of 40:

✅ $Fair Isaac Corp(FICO)$ – 77%

• Quiet giant behind your credit score

• Strong pricing power & sticky customers

• High-margin, low-drama operator

✅ $财捷(INTU)$ – 69%

• Owns QuickBooks & TurboTax

• Huge moat in SMB + personal finance

• Consistent profitability, now layering in AI

✅ $PTC Inc.(PTC)$ – 65%

• Industrial software, under the radar

• High profitability, steady growth

• Benefiting from long-term digital transformation in manufacturing

✅ $Adobe(ADBE)$ – 59%

• Dominates the creative and marketing software landscape

• Exceptional margins, now expanding into AI and cloud-based solutions

✅ $Synopsys(SNPS)$ – 46%

• Critical to semiconductor design (EDA tools)

• Strong margins, solid growth, and an essential role in chip innovation

High-Growth, Higher-Risk Names

These companies have strong revenue growth, but are still working toward higher profitability:

• ⚡ $Zeta Global Holdings Corp.(ZETA)$: 47% growth, but lower margins

• ⚡ $ACI Worldwide Inc(ACIW)$, $Newmont Mining(NEM)$, $Dynatrace Holdings LLC(DT)$: Strong growth with improving profitability

• ⚡ $Snowflake(SNOW)$ (not shown): Very high growth, but still burning cash

🤔 What Kind of Software Stocks Do You Look For?

• Are you on Team “Growth at All Costs”?

• Or do you prefer “Profitable Compounders” that steadily deliver?

Are any of these names in your portfolio? Which ones are you watching?