Palantir Projects 53-54% Revenue Growth in 2025 Amid Expanding Contracts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 09 2026
0mins
Should l Buy PLTR?
Source: Fool
- Accelerated Revenue Growth: Palantir's revenue grew by 29% in 2024, with projections of 53-54% growth in 2025, driven by a new $10 billion contract with the U.S. Department of Defense, indicating strong demand in both government and commercial sectors.
- Profitability Improvement: In 2023, Palantir achieved GAAP profitability for the first time, attributed to spending controls and reduced stock-based compensation, paving the way for its inclusion in the S&P 500 in 2024 and boosting market confidence.
- Dual-Engine Performance: In 2024, Palantir's commercial revenue growth reached 73%, while government revenue grew by 55%, showcasing robust performance across diversified markets and further solidifying its market position.
- Future Growth Potential: Analysts expect Palantir's revenue and GAAP EPS to grow at CAGRs of 45% and 84%, respectively, from 2024 to 2027, reflecting strategic initiatives in new AI tools and international market expansion.
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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: 130.010
Low
50.00
Averages
192.88
High
255.00
Current: 130.010
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.
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- Strengthened Market Position: Forrester Research ranked Palantir as a leader in AI decisioning platforms, while Morgan Stanley analysts noted it is emerging as the standard in enterprise AI, suggesting strong sales growth in the coming years.
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- Record Contracts for Palantir: The company closed 180 deals in Q4, totaling $4.26 billion in contract value, up 138% from the previous year, showcasing its strong competitive position and expanding customer base in the market.
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- Future Sales Guidance: Management has set a sales guidance of $7.19 billion for 2026, anticipating a 61% growth, indicating ongoing expansion while facing pressure from high valuations that may impact investor confidence.
- Limited Customer Base: Despite having 20,000 large corporations in the U.S., Palantir currently serves only 954 customers, primarily in government, which limits its market penetration and future growth potential.
- Valuation Risks: Palantir's stock is currently trading at 47 times its 2026 revenue guidance, reflecting an extremely high market valuation, and investors may face greater downside risks if growth slows or negative news emerges.
See More
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