Key Takeaways
- PLTR currently trading near $137, representing a 34% decline from its all-time peak of $207.52
- Rosenblatt launched coverage with Buy recommendation and $150 price objective
- Fresh U.S. Air Force partnership with GE Aerospace strengthens Palantir’s military portfolio
- Consensus earnings projections for 2026 and 2027 increased approximately 30% over the last 30 days
- Analysts’ median price objective of $196 suggests potential 43% gain from present price
Palantir Technologies delivered fourth-quarter 2025 revenue that surged 70% to reach $1.4 billion — marking its tenth consecutive quarter of revenue acceleration.
Palantir Technologies Inc., PLTR
Adjusted net income jumped 79% to $0.25 per diluted share. The software company achieved a Rule of 40 score of 127%, an exceptionally strong metric for an enterprise of its scale.
Yet despite these robust results, shares have retreated. PLTR now trades around $137, roughly 34% beneath its 52-week peak of $207.52.
Analysts on Wall Street, however, remain confident.
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 correction.
Bank of America analyst Mariana Perez Mora established the street’s highest target at $255, emphasizing Palantir’s superior speed in deploying AI solutions compared to competitors. She noted that the company’s technology enables “human-machine teams the ability to make the most informed decisions.”
Morgan Stanley analyst 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 consensus price target among Wall Street analysts currently stands at $196 per share, suggesting 43% potential upside from today’s trading levels.
Earnings projections have also climbed significantly. Over the past 30 days alone, the consensus forecast for 2026 increased 30% to $1.31 per diluted share. The 2027 projection rose 31% to $1.83.
New Military Contract
On the contract front, Palantir secured a fresh agreement with the U.S. Air Force and GE Aerospace centered on AI-driven logistics solutions for T-38 aircraft maintenance operations. The platform integrates data from military and supply chain systems to forecast parts requirements before problems emerge.
This expands an already substantial defense business. Government contracts currently represent 41% of Palantir’s total revenue, with that segment expanding 66% in the latest quarter.
U.S. commercial revenue soared 137% year-over-year, establishing itself as the company’s fastest-growing division. International commercial growth remains slower at 8%, a disparity management continues working to address.
Premium Valuation Remains
The company’s Artificial Intelligence Platform (AIP) keeps drawing enterprise clients who are transitioning from pilot phases to full-scale implementation. Industry analysts at both Forrester Research and International Data Corp have positioned Palantir as a frontrunner in AI decisioning technology.
Management’s full-year outlook projects $7.2 billion in revenue for 2026, powered by expansion in both government and commercial markets.
Nevertheless, the valuation premium remains substantial. PLTR currently trades at 183 times adjusted earnings. Even accounting for Wall Street’s expectation of 56% annual earnings growth through 2027, this valuation multiple provides minimal margin for disappointment.
Palantir’s defense-oriented AI capabilities also garnered attention recently following reports that U.S. military personnel utilized its technology during operations in Iran, in conjunction with additional AI systems including Anthropic’s Claude platform.
The company’s next quarterly earnings report is scheduled for May 5.
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