Drones streaking toward Saudi Arabia and Kuwait in early March were a stark reminder that the war in the Middle East is still widening and growing more unpredictable by the week. Gulf defenses intercepted multiple Iranian drones over oil-rich regions, and shipping routes that carry a large share of the world’s crude remain on edge. Each new strike shows how much modern conflict now relies on fast targeting, resilient logistics, and aircraft that can stay in the air despite relentless pressure.

This reality is pushing governments to lean harder on data-driven defense technology, especially tools that can keep critical jets flying and supply chains from seizing up. In this tense security climate, Palantir (PLTR) and GE Aerospace (GE) have deepened their work together on AI-powered solutions for military aircraft, combining advanced software with engine expertise to predict parts needs and reduce delays across key Air Force programs. 

With conflict risk rising and digital systems moving closer to the heart of air power, the question almost asks itself. Which of the two stocks looks more attractive to buy right now, PLTR or GE? Let's find out.

Palantir Technologies (PLTR)

Palantir Technologies is a $362.6 billion software company, formerly based in Denver and now in Miami, that builds operational AI platforms for government and commercial clients. The share price sits near $153.50 as of March 12, down about 13.4% year-to-date (YTD) yet still up roughly 84% over the past 52 weeks.

This valuation implies investors are paying about 148x forward earnings and roughly 80.8x sales, compared with sector medians near 21.8x and 3.2x, which signals very high expectations for durable growth and profitability.

Palantir announced a partnership with Ondas (ONDS) and World View to build a next-generation intelligence and sensing platform that links autonomous air and stratospheric systems into one command and control fabric for persistent ISR missions. The same week, Palantir also revealed a sovereign AI operating system reference architecture built on Nvidia (NVDA) infrastructure, giving countries and large enterprises a way to run sensitive AI workloads with tight control over data, models, and latency-critical applications. 

This earnings story is equally important as it shows how far the business has progressed from its early government-centric days. Their latest quarterly report on Feb. 2 detailed Q4 2025 GAAP EPS of $0.24 and adjusted EPS of $0.25 on revenue of about $1.41 billion, with net income of roughly $608.7 million and operating margins north of 30%. 

It highlighted sales growth of about 19% year-over-year (YoY) and net income growth near 28%, alongside operating cash flow of $777M and robust free cash flow margins. The full year 2025 figures pointed to GAAP net income of $1.63 billion and adjusted free cash flow of about $2.27 billion. PLTR now approaches its next earnings release on May 4 with consensus looking for Q1 EPS near $0.22 versus $0.04 a year earlier, implying very strong YoY growth of 450%.

Palantir currently carries a consensus “Moderate Buy” rating with an average target around $200.41, which suggests roughly 30% upside from the current price.

GE Aerospace (GE)

GE Aerospace is a U.S.-based aviation and defense manufacturer focused on jet engines, systems, and services for commercial and military aircraft. The company carries an annual dividend of $1.88 per share for a forward yield near 0.6% and a market value of around $341.0 billion. 

GE’s share price sits near $302.38 as of March 16, down about 1.5% YTD yet up roughly 54% over the past 52 weeks.

This pricing implies trailing and forward PEs of about 51.2x and 43.9x against sector medians near 21.7x and 19.5x, so the stock also trades at a clear premium multiple.

Delta’s latest widebody order shows why GE Aerospace remains central to global fleets at the same time its AI work with Palantir scales up on the defense side. This Jan. 13 announcement confirmed Delta selected GEnx engines for 30 new Boeing (BA) 787-10 aircraft, with options for 30 more, plus spare engines and long-term services support.

GE’s latest earnings update provides the other half of the story. This Q4 2025 report on Jan. 21 showed revenue of about $12.7 billion, up roughly 18% YoY and ahead of expectations, with adjusted EPS of $1.57 versus estimates near $1.43 for a high single-digit beat. 

The full year 2025 numbers highlighted GAAP revenue of about $45.9 billion and adjusted revenue near $42.3 billion, with adjusted EPS of roughly $6.37 and free cash flow around $7.7 billion, confirming a strong cash generation profile. 

GE is approaching its next earnings release on April 28, with expectations for Q1 EPS around $1.63 versus $1.49 a year ago, an estimated increase of roughly 9.4%.

The stock carries a consensus “Strong Buy” view with an average target around $360.74, which suggests roughly 19% upside from the current price.

Conclusion

Putting it all together, Palantir looks like the more compelling choice if you are chasing higher growth from AI-driven defense and aerospace software, even at a premium valuation. GE offers a different profile, with stronger current cash generation, a growing dividend, and steadier earnings, which suits a more conservative approach. Based on their guidance and recent momentum, PLTR appears to have more upside over the next few years, while GE is more likely to deliver a smoother climb. In this matchup, PLTR edges out as the better buy.