TLDR
- PLTR currently trading near $137, representing a 34% decline from its peak of $207.52
- Rosenblatt Securities launched coverage with Buy rating and $150 target price
- Fresh U.S. Air Force partnership with GE Aerospace strengthens Palantir’s defense portfolio
- Analyst consensus for 2026-2027 earnings jumped approximately 30% over the past 30 days
- Analyst median target of $196 suggests 43% potential upside from current trading levels
Palantir Technologies delivered fourth-quarter 2025 revenue of $1.4 billion, marking a 70% year-over-year increase — the company’s tenth consecutive quarter of growth acceleration.
Palantir Technologies Inc., PLTR
Adjusted net income climbed 79% to reach $0.25 per diluted share. The software company achieved a Rule of 40 metric of 127%, a remarkably strong reading for an enterprise of this scale.
Yet shares have retreated despite the impressive results. PLTR is currently changing hands around $137, approximately 34% beneath its 52-week peak of $207.52.
Analysts on Wall Street, however, remain optimistic.
On March 2, Rosenblatt Securities launched coverage with a Buy recommendation and $150 price objective. Mizuho previously elevated its stance 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 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” while asserting it’s “hard to find a better fundamental story in software.”
The Street’s median price objective now stands at $196 per share, suggesting 43% upside potential from today’s levels.
Earnings projections have also shifted significantly upward. Over the last month alone, the consensus estimate for 2026 increased 30% to $1.31 per diluted share. The 2027 forecast jumped 31% to $1.83.
Defense Contract Win
On the contracts 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 military and supply chain data to forecast parts requirements ahead of potential failures.
This expands an already substantial defense business. Government contracts currently represent 41% of Palantir’s overall revenue, with that division posting 66% growth in the latest quarter.
U.S. commercial revenue surged 137% year-over-year, establishing it as the company’s fastest-expanding segment. International commercial growth trails significantly at 8%, a disparity Palantir continues working to narrow.
Valuation Still a Concern
The company’s AIP platform for artificial intelligence continues drawing enterprise clients transitioning from testing phases into widespread implementation. Industry analysts at Forrester Research and International Data Corp have both positioned Palantir as a frontrunner in AI decisioning technology.
Management’s full-year outlook projects $7.2 billion in 2026 revenue, fueled by expansion across both government and commercial sectors.
Nevertheless, valuation metrics present challenges. PLTR currently commands a 183x multiple on adjusted earnings. Even accounting for Wall Street’s expectation of 56% annualized earnings growth through 2027, that valuation premium offers minimal margin for disappointment.
Palantir’s defense-focused AI capabilities gained additional visibility this week following reports that U.S. military operations in Iran utilized its software platform, working in conjunction with other AI systems including Anthropic’s Claude.
The company’s next quarterly report is slated for May 5.
