Key Highlights
- PLTR shares currently trade around $137, representing a 34% decline from the peak of $207.52
- Rosenblatt launched coverage with a Buy recommendation and $150 price objective
- Palantir secures U.S. Air Force agreement with GE Aerospace for defense operations
- Analyst earnings projections for 2026 and 2027 jumped approximately 30% over the past month
- Wall Street’s median price objective stands at $196, suggesting 43% potential gain
Palantir Technologies delivered Q4 2025 results showing revenue climbing 70% to reach $1.4 billion — marking the company’s 10th consecutive quarter of accelerating expansion.
Palantir Technologies Inc., PLTR
Adjusted net income surged 79% to $0.25 per diluted share. The firm achieved a Rule of 40 score of 127%, an exceptional metric for an enterprise software company at this scale.
Despite these strong results, shares have experienced a correction. PLTR trades near $137, approximately 34% beneath its 52-week peak of $207.52.
Analyst sentiment, however, remains firmly positive.
Rosenblatt Securities launched 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 decline.
Bank of America’s Mariana Perez Mora established the highest target at $255, emphasizing Palantir’s superior speed in deploying AI solutions compared to competitors. She noted that the company’s platforms provide “human-machine teams the ability to make the most informed decisions.”
Morgan Stanley’s Sanjit Singh assigned a $205 target, describing Palantir as “the standard in enterprise AI” and stating it’s “hard to find a better fundamental story in software.”
The median Wall Street price objective currently stands at $196 per share, indicating 43% upside potential from present levels.
Earnings projections have experienced significant upward revisions. Over the past month alone, the 2026 consensus estimate increased 30% to $1.31 per diluted share. The 2027 projection advanced 31% to $1.83.
Defense Contract Win
Regarding new business, Palantir secured an agreement with the U.S. Air Force and GE Aerospace centered on AI-driven logistics for T-38 aircraft maintenance. The platform integrates data from military and supply chain channels to forecast parts requirements ahead of potential failures.
This expands an already substantial defense business. Government revenue currently represents 41% of Palantir’s total sales, with that division expanding 66% in the latest quarter.
U.S. commercial revenue surged 137% year-over-year, establishing itself as the company’s fastest-expanding segment. International commercial remains slower at 8% growth, representing a challenge the firm continues to address.
Valuation Still a Concern
The company’s AI platform, AIP, keeps drawing enterprise clients who are transitioning from pilot programs to comprehensive rollouts. Palantir has earned recognition as a leader in AI decisioning software from both Forrester Research and the International Data Corp.
Full-year projections call for $7.2 billion in revenue for 2026, powered by expansion across both government and commercial sectors.
The valuation picture remains challenging to overlook. PLTR commands a multiple of 183 times adjusted earnings. Even accounting for Wall Street’s expectation of 56% annual earnings growth through 2027, that premium offers limited margin for disappointment.
Palantir’s military AI capabilities gained additional visibility this week following reports that U.S. forces deployed its software during Iran operations, working alongside other AI systems including Anthropic’s Claude platform.
The company’s next earnings release is scheduled for May 5.
