Palantir Stock Surges 135% in 2025, Future Growth Concerns Arise
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: NASDAQ.COM
- Stock Performance: Palantir's stock surged 135% in 2025, following impressive gains of 341% in 2024 and 167% in 2023, showcasing the company's robust performance in the AI software sector.
- Revenue Growth: In Q3, Palantir's total revenue increased by 63% year-over-year to $1.18 billion, with government revenue rising 55% to $633 million and commercial revenue growing 73% to $548 million, indicating strong success in both sectors.
- Market Expectations: Despite Wall Street analysts projecting a slowdown in revenue growth to 54% in Q4 and 43% for FY 2026, this could pressure the stock price, especially given its high valuation.
- Valuation Challenges: Palantir's stock trades at 117 times trailing sales and 176 times forward earnings, suggesting that significant future growth is already priced in, leading analysts to advise caution for potential investors considering the stock's high premium.
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 187.87 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.
16 Analyst Rating
3 Buy
11 Hold
2 Sell
Hold
Current: 181.680
Low
50.00
Averages
187.87
High
255.00
Current: 181.680
Low
50.00
Averages
187.87
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.
