Palantir Reports Strong Q4 Earnings Amid Valuation Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy PLTR?
Source: Fool
- Significant Revenue Growth: Palantir's U.S. commercial revenue surged 137% year-over-year in Q4, reaching $507 million, indicating a strong market share gain in the competitive AI sector and enhancing its long-term growth potential.
- Rapid Customer Expansion: Learto scaled its user base on Palantir's platform from 100 to 16,000 users and increased use cases from 4 to 280, demonstrating customer recognition of the investment returns and further driving revenue growth for the company.
- Increased Platform Applications: Customers are generating over 1 billion requests per week via Palantir's API, indicating a growing number of custom applications being built on the platform, which not only enhances platform stickiness but also strengthens its competitive position in the market.
- Significant Valuation Risks: Despite analysts projecting a 47% compound annual growth rate for Palantir's revenue through 2028, the current price-to-sales ratio of 75 is still considered high, prompting investors to be cautious about potential stock price corrections.
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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: 142.910
Low
50.00
Averages
192.88
High
255.00
Current: 142.910
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.
Palantir's Stock Pullback Amid AI Potential
- Stock Performance Review: Palantir's shares have surged 1,666% over the past three years, yet have declined 10% year-to-date, reflecting market concerns about future growth amid current high valuations.
- Significant Revenue Growth: In Q4 2024, Palantir's revenue soared 93% year-over-year to $1.1 billion, with U.S. commercial sales jumping 137% to $507 million, indicating a successful pivot towards business clients.
- AI Platform Launch: The introduction of Palantir's Artificial Intelligence Platform (AIP) enables clients to securely integrate large language models with internal data, enhancing data querying and analysis efficiency, particularly in public safety and military applications.
- Competitive Landscape Analysis: Despite Palantir's market advantages in data analytics, it faces fierce competition from companies like Microsoft and Snowflake, and its forward P/E ratio of 158 significantly exceeds the S&P 500's 22, limiting future growth potential.
See More
Palantir Stock Valuation Remains Difficult to Understand
- Product Superiority: Palantir's AI-powered software enables real-time decision-making, with government revenue reaching $730 million in Q4 compared to $677 million in commercial revenue, highlighting strong performance in both sectors, although commercial growth at 82% outpaces government growth at 60%.
- Strong Profitability: In Q4 2025, Palantir achieved a 43% profit margin, ranking among the best in the software industry, indicating that the company maintains high profitability while experiencing rapid growth, enhancing its competitive position in the market.
- Valuation Risks: Trading at 80 times sales, Palantir is one of the most expensive stocks on the market; despite being profitable, the effectiveness of using the price-to-sales ratio diminishes, necessitating a focus on future earnings growth potential for valuation assessment.
- Uncertain Future Growth: While Palantir's future prospects appear promising, sustaining the projected rapid growth is crucial; otherwise, the current high valuation may not hold, prompting investors to carefully weigh risks against potential returns.
See More
Palantir Reports Strong Q4 Earnings Amid Valuation Concerns
- Significant Revenue Growth: Palantir's U.S. commercial revenue surged 137% year-over-year in Q4, reaching $507 million, indicating a strong market share gain in the competitive AI sector and enhancing its long-term growth potential.
- Rapid Customer Expansion: Learto scaled its user base on Palantir's platform from 100 to 16,000 users and increased use cases from 4 to 280, demonstrating customer recognition of the investment returns and further driving revenue growth for the company.
- Increased Platform Applications: Customers are generating over 1 billion requests per week via Palantir's API, indicating a growing number of custom applications being built on the platform, which not only enhances platform stickiness but also strengthens its competitive position in the market.
- Significant Valuation Risks: Despite analysts projecting a 47% compound annual growth rate for Palantir's revenue through 2028, the current price-to-sales ratio of 75 is still considered high, prompting investors to be cautious about potential stock price corrections.
See More
Key Wall Street Rating Changes Overview
- Shopify Upgrade: MoffettNathanson upgraded Shopify from neutral to buy, citing an attractive entry point due to market fears surrounding software companies, and believes Shopify will emerge as a long-term winner in the AI commerce landscape.
- Nvidia Outlook: Bernstein reiterated Nvidia as outperform, emphasizing that the AI growth trend remains robust, particularly in the AI compute sector, suggesting continued benefits for Nvidia and its peers.
- Thomson Reuters Upgrade: RBC upgraded Thomson Reuters from sector perform to outperform, indicating that the company's potential in the AI space will drive a rebound in stock price, creating an asymmetric upside opportunity in a complex market.
- Micron Price Target Increase: Deutsche Bank raised Micron's price target from $300 to $500 per share, asserting that the current market environment remains favorable for Micron's performance in the upcoming quarters, indicating strong growth potential.
See More
Daiwa Upgrades Palantir to Buy, Sees Recovery Potential
- Rating Upgrade: Daiwa Capital Markets upgraded Palantir's rating from neutral to buy, although analyst Shigemichi Yoshizu lowered the price target from $200 to $180, indicating confidence in the company's future performance.
- Stock Volatility: Palantir's shares surged 23% over the past 12 months but are down 20% so far in 2026; the analyst believes there is still a 26% upside potential, reflecting market recognition of its growth prospects.
- Earnings Performance: In its recent earnings report, Palantir not only beat earnings and revenue expectations but also saw its stock rise 7% post-announcement, demonstrating strong demand for its AI platform services.
- Commercial Revenue Growth: Palantir's U.S. commercial revenue soared 137%, with 2026 guidance indicating sustained growth potential; the analyst projects significant future earnings growth as the company enhances its penetration among existing customers.
See More
Palantir's Mixed Earnings Report Leads to Significant Stock Volatility
- Significant Revenue Growth: Palantir reported a remarkable 70% year-over-year revenue growth in Q4 2026, with the U.S. commercial segment soaring 137%, indicating strong market performance despite an 8% decline in stock price due to market reactions.
- Strong Customer Acquisition: The company closed 61 deals worth at least $10 million in the recent quarter, with a 34% year-over-year increase in customer count, reflecting Palantir's aggressive efforts to expand market share, although external market uncertainties persist.
- Improved Profitability: Palantir's annual earnings skyrocketed to $608.7 million, a 7.7-fold increase year-over-year, with adjusted earnings per share of $0.25 surpassing Wall Street's expectation of $0.23, showcasing significant improvements in profitability.
- Optimistic Future Outlook: The company projects a 61% revenue growth for 2026, with the Chief Revenue Officer stating that Palantir is entering the new year on a strong footing, although the market remains cautious about its high valuation, confidence in future growth remains strong.
See More
Palantir's Stock Pullback Amid AI Potential
- Stock Performance Review: Palantir's shares have surged 1,666% over the past three years, yet have declined 10% year-to-date, reflecting market concerns about future growth amid current high valuations.
- Significant Revenue Growth: In Q4 2024, Palantir's revenue soared 93% year-over-year to $1.1 billion, with U.S. commercial sales jumping 137% to $507 million, indicating a successful pivot towards business clients.
- AI Platform Launch: The introduction of Palantir's Artificial Intelligence Platform (AIP) enables clients to securely integrate large language models with internal data, enhancing data querying and analysis efficiency, particularly in public safety and military applications.
- Competitive Landscape Analysis: Despite Palantir's market advantages in data analytics, it faces fierce competition from companies like Microsoft and Snowflake, and its forward P/E ratio of 158 significantly exceeds the S&P 500's 22, limiting future growth potential.
See More
Palantir Stock Valuation Remains Difficult to Understand
- Product Superiority: Palantir's AI-powered software enables real-time decision-making, with government revenue reaching $730 million in Q4 compared to $677 million in commercial revenue, highlighting strong performance in both sectors, although commercial growth at 82% outpaces government growth at 60%.
- Strong Profitability: In Q4 2025, Palantir achieved a 43% profit margin, ranking among the best in the software industry, indicating that the company maintains high profitability while experiencing rapid growth, enhancing its competitive position in the market.
- Valuation Risks: Trading at 80 times sales, Palantir is one of the most expensive stocks on the market; despite being profitable, the effectiveness of using the price-to-sales ratio diminishes, necessitating a focus on future earnings growth potential for valuation assessment.
- Uncertain Future Growth: While Palantir's future prospects appear promising, sustaining the projected rapid growth is crucial; otherwise, the current high valuation may not hold, prompting investors to carefully weigh risks against potential returns.
See More
Palantir Reports Strong Q4 Earnings Amid Valuation Concerns
- Significant Revenue Growth: Palantir's U.S. commercial revenue surged 137% year-over-year in Q4, reaching $507 million, indicating a strong market share gain in the competitive AI sector and enhancing its long-term growth potential.
- Rapid Customer Expansion: Learto scaled its user base on Palantir's platform from 100 to 16,000 users and increased use cases from 4 to 280, demonstrating customer recognition of the investment returns and further driving revenue growth for the company.
- Increased Platform Applications: Customers are generating over 1 billion requests per week via Palantir's API, indicating a growing number of custom applications being built on the platform, which not only enhances platform stickiness but also strengthens its competitive position in the market.
- Significant Valuation Risks: Despite analysts projecting a 47% compound annual growth rate for Palantir's revenue through 2028, the current price-to-sales ratio of 75 is still considered high, prompting investors to be cautious about potential stock price corrections.
See More
Key Wall Street Rating Changes Overview
- Shopify Upgrade: MoffettNathanson upgraded Shopify from neutral to buy, citing an attractive entry point due to market fears surrounding software companies, and believes Shopify will emerge as a long-term winner in the AI commerce landscape.
- Nvidia Outlook: Bernstein reiterated Nvidia as outperform, emphasizing that the AI growth trend remains robust, particularly in the AI compute sector, suggesting continued benefits for Nvidia and its peers.
- Thomson Reuters Upgrade: RBC upgraded Thomson Reuters from sector perform to outperform, indicating that the company's potential in the AI space will drive a rebound in stock price, creating an asymmetric upside opportunity in a complex market.
- Micron Price Target Increase: Deutsche Bank raised Micron's price target from $300 to $500 per share, asserting that the current market environment remains favorable for Micron's performance in the upcoming quarters, indicating strong growth potential.
See More
Daiwa Upgrades Palantir to Buy, Sees Recovery Potential
- Rating Upgrade: Daiwa Capital Markets upgraded Palantir's rating from neutral to buy, although analyst Shigemichi Yoshizu lowered the price target from $200 to $180, indicating confidence in the company's future performance.
- Stock Volatility: Palantir's shares surged 23% over the past 12 months but are down 20% so far in 2026; the analyst believes there is still a 26% upside potential, reflecting market recognition of its growth prospects.
- Earnings Performance: In its recent earnings report, Palantir not only beat earnings and revenue expectations but also saw its stock rise 7% post-announcement, demonstrating strong demand for its AI platform services.
- Commercial Revenue Growth: Palantir's U.S. commercial revenue soared 137%, with 2026 guidance indicating sustained growth potential; the analyst projects significant future earnings growth as the company enhances its penetration among existing customers.
See More
Palantir's Mixed Earnings Report Leads to Significant Stock Volatility
- Significant Revenue Growth: Palantir reported a remarkable 70% year-over-year revenue growth in Q4 2026, with the U.S. commercial segment soaring 137%, indicating strong market performance despite an 8% decline in stock price due to market reactions.
- Strong Customer Acquisition: The company closed 61 deals worth at least $10 million in the recent quarter, with a 34% year-over-year increase in customer count, reflecting Palantir's aggressive efforts to expand market share, although external market uncertainties persist.
- Improved Profitability: Palantir's annual earnings skyrocketed to $608.7 million, a 7.7-fold increase year-over-year, with adjusted earnings per share of $0.25 surpassing Wall Street's expectation of $0.23, showcasing significant improvements in profitability.
- Optimistic Future Outlook: The company projects a 61% revenue growth for 2026, with the Chief Revenue Officer stating that Palantir is entering the new year on a strong footing, although the market remains cautious about its high valuation, confidence in future growth remains strong.
See More
