Is Palantir (PLTR) Stock a Buy After a 38% Pullback?

TLDR

• Palantir stock finished Friday at $135.90, up 4.5%, after posting 70% revenue growth in Q4 2025 and guiding for 61% growth in 2026
• U.S. commercial revenue jumped 137% while government revenue climbed 66%, with total Q4 revenue hitting $1.407 billion
• The stock has fallen 25% from its peak despite strong results, trading at 47 times 2026 revenue guidance amid valuation concerns
• Cognizant announced a partnership with Palantir on Thursday to integrate AIP with healthcare services
• Director Alexander D. Moore sold 20,000 shares on Feb. 2, reducing his stake to 1,172,978 shares

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Palantir Technologies finished Friday at $135.90, posting a 4.5% gain to cap off a volatile week for AI software stocks.

Palantir Technologies Inc., PLTR

The data analytics company delivered monster fourth-quarter results earlier this week. Revenue jumped 70% year-over-year to $1.407 billion.

Management set an aggressive target for 2026. The company guided for $7.19 billion in sales, representing 61% growth.

U.S. commercial revenue led the charge. That segment soared 137% in Q4.

Government clients also ramped up spending. Revenue from U.S. government contracts climbed 66%.

Market Volatility Hits High-Flying Tech Names

Thursday brought a sharp selloff across AI and software stocks. Palantir dropped 6.8% as investors fretted about Big Tech capital spending.

Microsoft fell 5% and Oracle tumbled 7% during the same stretch. Concerns centered on whether massive data center investments would pay off.

Friday saw a dramatic reversal. The Dow surged 2.47% and closed above 50,000 for the first time.

Investors rotated out of tech stocks and into other sectors. The shift helped stabilize Palantir after Thursday’s drop.

Partnerships and Government Focus Drive Growth

Cognizant announced a partnership with Palantir on Thursday. The deal combines Palantir Foundry and AIP with Cognizant’s healthcare platform.

Government contracts remain crucial for Palantir. Washington debates over defense contractor policies could impact the stock.

A White House directive targeting dividends and buybacks at defense firms may benefit Palantir. The company doesn’t currently pay dividends or repurchase shares.

Insider Sales and Valuation Concerns

Director Alexander D. Moore sold 20,000 shares on Feb. 2 through a pre-set trading plan. His remaining stake stands at 1,172,978 shares.

The stock has tumbled 25% from its peak despite accelerating revenue growth. Palantir trades at 47 times its 2026 revenue guidance.

That valuation ranks among the highest on Wall Street. The premium pricing leaves little room for error.

Palantir still serves only 954 total customers. The company sees a massive runway with 20,000 large U.S. corporations as potential clients.

British lawmakers have called for halting public contracts with Palantir over transparency concerns in government deals.

Next week brings key economic data. The January jobs report drops Wednesday at 8:30 a.m. ET, followed by January CPI data Friday.

Cisco Systems reports on Feb. 11 and Arista Networks follows on Feb. 12, both offering insights into enterprise tech demand.

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