Key Takeaways
- Shares currently trading near $137, representing a 34% drop from the peak of $207.52
- Rosenblatt Securities launches coverage with Buy recommendation and $150 target
- Fresh defense partnership with U.S. Air Force and GE Aerospace strengthens military segment
- Analyst earnings projections for 2026-2027 jumped approximately 30% over the last 30 days
- Street consensus target of $196 suggests 43% potential gain from present price
Palantir Technologies delivered fourth-quarter 2025 results showing 70% revenue expansion to $1.4 billion—marking the company’s tenth consecutive quarter of growth acceleration.
Palantir Technologies Inc., PLTR
Adjusted earnings per share climbed 79% to $0.25. Management highlighted a Rule of 40 metric reaching 127%, an exceptional figure for a software company at this scale.
Despite the strong operational performance, shares have retreated significantly. PLTR is currently valued near $137, down roughly 34% from its 52-week peak of $207.52.
Yet analyst sentiment remains constructive.
Rosenblatt Securities initiated research coverage on March 2 with a Buy recommendation and $150 per share objective. Mizuho had previously raised its stance to Outperform with a $195 target, highlighting valuation compression following the year-to-date selloff.
Bank of America analyst Mariana Perez Mora established the highest Street target at $255, emphasizing Palantir‘s competitive advantage in deploying AI applications into live production environments ahead of competitors. Her research note highlighted how the firm’s technology enables “human-machine teams the ability to make the most informed decisions.”
Morgan Stanley analyst Sanjit Singh assigned a $205 price objective, describing the company as “the standard in enterprise AI” and noting it’s “hard to find a better fundamental story in software.”
The Street’s median price objective now stands at $196 per share, indicating 43% appreciation potential from today’s levels.
Earnings forecasts have also seen substantial upward revision. Over the past month alone, the consensus estimate for 2026 increased 30% to $1.31 per diluted share. The 2027 projection rose 31% to $1.83.
Military Contract Expansion
On the contract front, Palantir secured a fresh engagement with the U.S. Air Force alongside GE Aerospace centered on AI-driven logistics optimization for T-38 aircraft maintenance operations. The platform integrates military and supply chain data streams to anticipate component requirements before operational disruptions occur.
This win expands an already substantial defense footprint. Government revenue currently represents 41% of total sales and expanded 66% in the latest reporting period.
U.S. commercial revenue surged 137% year-over-year, establishing itself as the company’s fastest-expanding vertical. International commercial growth remains modest at 8%, representing an area requiring attention.
Premium Valuation Remains
The firm’s AI platform, known as AIP, continues drawing enterprise clients transitioning from trial phases into full-scale implementations. Industry research firms Forrester Research and International Data Corp have both positioned Palantir as a leader in AI decisioning software.
Full-year 2026 guidance projects $7.2 billion in revenue, supported by momentum across both government and commercial sectors.
The valuation picture, however, presents challenges. PLTR commands a 183x multiple on adjusted earnings. Even accounting for Wall Street’s expectation of 56% compound annual earnings growth through 2027, the current multiple offers limited margin for disappointment.
Palantir’s defense AI capabilities received additional visibility this week following reports that U.S. military operations in Iran utilized its software infrastructure, deployed alongside other AI systems including Anthropic’s Claude platform.
The company’s next quarterly report is scheduled for May 5.
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