Key Highlights
- PLTR currently trading near $137, representing a 34% decline from its all-time peak of $207.52
- Rosenblatt Securities launched coverage with Buy rating and $150 price objective
- Fresh U.S. Air Force partnership with GE Aerospace expands Palantir’s military footprint
- Forward earnings projections for 2026 and 2027 jumped approximately 30% over the last 30 days
- Consensus analyst target of $196 suggests 43% potential gain from present price
Palantir Technologies delivered fourth-quarter 2025 results showing revenue growth of 70% reaching $1.4 billion — marking the tenth consecutive quarter of growth acceleration.
Palantir Technologies Inc., PLTR
Adjusted earnings per diluted share climbed 79% to $0.25. The software company achieved an exceptional Rule of 40 score of 127%, a remarkable achievement for an enterprise of this scale.
Yet the market has been less enthusiastic. Shares are currently hovering around $137, approximately 34% beneath the 52-week peak of $207.52.
Analysts, however, remain optimistic about the company’s prospects.
Rosenblatt Securities launched their coverage on March 2 with a Buy recommendation and $150 price objective. Mizuho previously elevated the stock to Outperform with a $195 target, highlighting attractive valuations following the recent correction.
Bank of America analyst Mariana Perez Mora established the highest target at $255, emphasizing Palantir’s superior speed in deploying AI solutions compared to competitors. She highlighted that the company’s platforms enable “human-machine teams the ability to make the most informed decisions.”
Morgan Stanley analyst Sanjit Singh assigned a $205 target, characterizing Palantir as “the standard in enterprise AI” and noting it’s “hard to find a better fundamental story in software.”
The consensus price objective across analyst coverage now stands at $196 per share, suggesting 43% appreciation potential from today’s levels.
Forward earnings projections have experienced significant upward revisions. Over the past 30 days alone, the 2026 consensus forecast increased 30% to $1.31 per diluted share. The 2027 projection climbed 31% to $1.83.
Military Contract Expansion
On the partnerships front, Palantir secured a fresh agreement with the U.S. Air Force and GE Aerospace centered on AI-driven logistics for T-38 aircraft maintenance operations. The platform integrates data from military and supply chain systems to forecast parts requirements proactively.
This expands an already substantial defense business. Government contracts currently represent 41% of Palantir’s revenue mix, with that division posting 66% growth in the latest quarter.
U.S. commercial revenue surged 137% year-over-year, establishing it as the fastest-expanding business segment. International commercial lags significantly with just 8% growth, representing a challenge the company continues to address.
Premium Valuation Remains
The company’s AIP platform continues drawing enterprise clients transitioning from pilot phases to complete implementation. Palantir has earned leadership recognition in AI decisioning software from both Forrester Research and International Data Corp.
Management’s full-year outlook projects $7.2 billion in revenue for 2026, supported by momentum in both government and commercial markets.
Yet the valuation presents challenges. PLTR commands a 183x multiple on adjusted earnings. Despite Wall Street projecting 56% compound annual earnings growth through 2027, this premium valuation allows minimal margin for disappointment.
Palantir’s defense AI capabilities garnered additional attention recently following reports that U.S. military forces deployed its software during Iran operations, in conjunction with other AI platforms including Anthropic’s Claude system.
The company’s next quarterly report is scheduled for May 5.
