TLDR
- Bank of America raised Palantir’s price target to a Street-high $215, maintaining a Buy rating based on accelerating commercial growth and AI adoption.
- Palantir stock has gained 145% year-to-date in 2025 and 305% over the past 12 months, reaching a market cap near $440 billion.
- The company reported its first billion-dollar quarter in Q2 2025 with revenue up 48% to $1.004 billion, driven by 93% growth in U.S. commercial sales.
- Palantir closed 157 deals worth at least $1 million in Q2, with total contract backlog growing to $7.1 billion, up 65% from the prior year.
- Despite bullish price targets from some analysts, Palantir maintains a consensus Hold rating due to its premium valuation of 409 times forward earnings.
Bank of America Securities lifted its price target on Palantir Technologies to $215 from $180. The firm maintained its Buy rating on the stock.
Five-star analyst Mariana Perez Mora cited expanding government contracts and growing adoption of Agentic AI systems. She expects government sales could exceed $8 billion by 2030.
Palantir has delivered one of the strongest performances in the 2025 AI rally. The Denver-based company now carries a market cap near $440 billion.
Shares have climbed 145% year-to-date. Over the past 12 months, the stock has returned 305%.
The company hit a 52-week high of $190 in August. Growth has been fueled by AI-powered data platforms and new government contracts.
Recent Performance Shows Accelerating Revenue
Palantir reported its strongest quarter in August with Q2 revenue rising 48% year-over-year to $1.004 billion. This marked the company’s first billion-dollar quarter.
U.S. revenue grew 68% while U.S. commercial sales jumped 93%. Adjusted operating income reached $464 million, representing a 46% margin.
Adjusted earnings per share hit $0.16, up 77% from the prior year. The company’s Rule of 40 score reached 94%.
Palantir closed 157 deals worth at least $1 million in the quarter. This included 66 contracts exceeding $5 million and 42 above $10 million.
The company signed new contracts worth $2.3 billion during Q2. Total unfulfilled contract value spiked 65% to $7.1 billion.
For fiscal 2025, Palantir now projects revenue between $4.14 billion and $4.15 billion. The company expects U.S. commercial revenue to surpass $1.3 billion, representing 85% growth in that segment.
AI Systems Drive Military and Enterprise Adoption
Mora pointed to growing use of the Maven Smart System, which NATO selected earlier this year. Palantir’s Field Deployment Engineers are deepening use of Agentic AI to scale platforms.
The analyst projects long-term revenue growth at a 30% compound annual rate. She noted momentum in sectors aligned with AI leadership and operational execution.
Palantir recently signed a partnership with the U.K. government worth up to $1.8 billion for defense sector investments. The deal could open entry into a new market.
Recent reports mentioned concerns about the battlefield communications network Palantir is developing for the U.S. Army. The company stated these issues were quickly identified and fixed.
The stock faced some volatility last month on news of potential semiconductor tariffs. Such tariffs could affect the company’s margin profile on AI inference applications.
Palantir plans to release Q3 results on November 3. The company has consistently beaten Wall Street earnings expectations over the past four quarters.
Operating margin stood at 45% in the first half of 2025, up nine points from the prior year. This suggests room for continued earnings expansion.
Analyst Views Remain Mixed on Valuation
The stock trades at 409 times forward earnings. HSBC raised its target to $181 from $111 in August but kept a Hold rating due to execution risks and valuation pressure.
Palantir carries a consensus Hold rating among analysts. Of 19 analysts covering the company, four rate it a Buy, 13 suggest a Hold, and two call it a Sell.
The average 12-month price target stands at $157.72, implying downside of 10.8% from current levels.
