Palantir Stock Gains Momentum as Wall Street Upgrades Pour In

Key Takeaways

• PLTR stock hovers near $137, representing a 34% decline from its peak of $207.52
• Rosenblatt Securities launched coverage with a Buy recommendation and $150 target price
• Palantir secured a new U.S. Air Force partnership with GE Aerospace for defense AI applications
• Analyst consensus for 2026 and 2027 earnings jumped approximately 30% over the last 30 days
• Average analyst target price of $196 suggests potential 43% gains from present valuation

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Palantir Technologies delivered fourth-quarter 2025 results showing revenue growth of 70% reaching $1.4 billion — marking its tenth consecutive quarter of growth acceleration.

Palantir Technologies Inc., PLTR

Adjusted net income jumped 79% to $0.25 per share on a diluted basis. The software company achieved an exceptional Rule of 40 score of 127%, a metric that’s remarkably strong for an enterprise of this scale.

Yet the equity has experienced significant retracement. PLTR now trades around $137, approximately 34% off its 52-week peak of $207.52.

Investment analysts, however, are growing more optimistic.

Rosenblatt Securities initiated research coverage on March 2 with a Buy recommendation and $150 price objective. Mizuho previously elevated its rating to Outperform with a $195 target, highlighting attractive valuation levels following the recent selloff.

The consensus Wall Street price target currently stands at $196 per share, indicating 43% appreciation potential from today’s price.

Earnings projections have experienced substantial upward revisions. Over just the past 30 days, the consensus 2026 forecast increased 30% to $1.31 per diluted share. The 2027 projection rose 31% to $1.83.

New Defense Partnership

Regarding new business, Palantir won a contract with the U.S. Air Force alongside GE Aerospace centered on artificial intelligence-driven logistics for T-38 aircraft maintenance operations. The platform integrates data from military databases and supply chain networks to forecast parts requirements before maintenance issues occur.

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 reporting period.

U.S. commercial revenue surged 137% year-over-year, establishing it as the highest-growth business segment. International commercial revenue is advancing at just 8%, highlighting a geographic performance disparity the company continues addressing.

Premium Valuation Remains

The company’s Artificial Intelligence Platform (AIP) continues gaining traction with enterprise clients transitioning from testing phases to full-scale implementations. Industry research firms Forrester Research and International Data Corp have both recognized Palantir as a leader in AI decisioning software.

Full-year 2026 guidance projects $7.2 billion in revenue, powered by expansion across both government and commercial sectors.

Nevertheless, valuation metrics remain elevated. PLTR commands a 183x multiple on adjusted earnings. Despite Wall Street projecting 56% compound annual earnings growth through 2027, the current valuation leaves minimal margin for disappointment.

Palantir’s defense-focused AI capabilities also garnered attention recently following reports that U.S. military forces deployed its technology during operations in Iran, used in conjunction with other AI systems including Anthropic’s Claude platform.

The company’s next quarterly report is scheduled for May 5.

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