Palantir (PLTR) 2026 Outlook: 121% Revenue Growth and 51% Profit Margin
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- AI Platform Drives Deal Growth: Palantir's Artificial Intelligence Platform (AIP) secured 204 contracts over $1 million in Q3 2025, including 53 exceeding $10 million, highlighting its significance in enterprise AI deployments and expected to drive larger deal volumes and sizes in 2026.
- U.S. Commercial Business Surge: In Q3 2025, Palantir's U.S. commercial revenue soared 121% year-over-year to $397 million, driven by AIP, and is expected to remain a primary growth engine in 2026, although growth rates may moderate.
- Larger Government Contracts: While government business growth is slower, it is projected to become a significant source of long-duration, high-visibility revenues in 2026, with Citi analysts forecasting a 51% year-over-year increase in government revenues, with bullish estimates exceeding 70%.
- Strong Margin Sustainability: Palantir reported a 51% adjusted operating margin in Q3, driven by AI-enhanced productivity, and is expected to maintain margins in the mid-40% to low-50% range in 2026, reflecting its competitive edge in AI-driven decision-making services.
Analyst Views on PLTR
Wall Street analysts forecast PLTR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PLTR is 192.88 USD with a low forecast of 50.00 USD and a high forecast of 255.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
5 Buy
10 Hold
2 Sell
Hold
Current: 170.960
Low
50.00
Averages
192.88
High
255.00
Current: 170.960
Low
50.00
Averages
192.88
High
255.00
About PLTR
Palantir Technologies Inc. is engaged in building software to assist in counterterrorism investigations and operations. The Company has built four principal software platforms, including Palantir Gotham (Gotham), Palantir Foundry (Foundry), Palantir Apollo (Apollo), and Palantir Artificial Intelligence Platform (AIP). Apollo is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems. Gotham enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants. Foundry transforms the ways organizations operate by creating a central operating system for their data. AIP enables responsible artificial intelligence (AI)-advantage across the enterprise by using primary, core components built to effectively activate large language models and other AI within any organization.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
