TLDR
- PLTR trades around $137, down 34% from its record high of $207.52
- Rosenblatt initiated coverage with a Buy rating and $150 price target
- A new U.S. Air Force contract with GE Aerospace boosts Palantir’s defense work
- Wall Street raised 2026 and 2027 earnings estimates by ~30% in the past month
- Median analyst price target of $196 implies 43% upside from current levels
Palantir Technologies reported Q4 2025 revenue up 70% to $1.4 billion — its 10th straight quarter of accelerating growth.
Palantir Technologies Inc., PLTR
Non-GAAP net income rose 79% to $0.25 per diluted share. The company posted a Rule of 40 score of 127%, which is unusually high for a software firm of its size.
Despite those numbers, the stock has pulled back. PLTR currently sits around $137, about 34% below its 52-week high of $207.52.
Wall Street, though, is not backing away.
Rosenblatt Securities started coverage on March 2 with a Buy rating and a $150 price target. Mizuho had already upgraded the stock to Outperform with a $195 target, pointing to compressed valuations after the early-year pullback.
Bank of America’s Mariana Perez Mora set the most aggressive target at $255, citing Palantir’s ability to get AI solutions into production faster than rivals. She wrote that the company’s platforms give “human-machine teams the ability to make the most informed decisions.”
Morgan Stanley’s Sanjit Singh set a $205 target, calling Palantir “the standard in enterprise AI” and saying it’s “hard to find a better fundamental story in software.”
The median price target across Wall Street now sits at $196 per share, implying 43% upside from current levels.
Earnings estimates have moved sharply higher too. In just the past month, the 2026 consensus estimate rose 30% to $1.31 per diluted share. The 2027 estimate climbed 31% to $1.83.
Defense Contract Win
On the contract side, Palantir landed a new deal with the U.S. Air Force and GE Aerospace focused on AI-powered logistics for T-38 aircraft maintenance. The system pulls data from military and supply chain sources to predict parts demand before issues arise.
It adds to a growing defense portfolio. Government revenue now makes up 41% of Palantir’s total, and that segment grew 66% in the most recent quarter.
U.S. commercial revenue grew 137% year-over-year, making it the fastest-growing part of the business. International commercial is lagging at 8% growth, a gap the company has yet to close.
Valuation Still a Concern
The company’s AI platform, AIP, continues to attract enterprise customers moving past pilot programs into full deployment. Palantir has been ranked as a leader in AI decisioning software by both Forrester Research and the International Data Corp.
Full-year guidance calls for $7.2 billion in sales for 2026, driven by both government and commercial demand.
Still, the valuation is hard to ignore. PLTR trades at 183 times adjusted earnings. Even with Wall Street expecting 56% annual earnings growth through 2027, that multiple leaves little room for error.
Palantir’s military AI tools also drew attention this week after reports that U.S. forces used its software during operations in Iran, alongside other AI tools including Anthropic’s Claude platform.
Next earnings are scheduled for May 5.
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