Palantir Technologies Surges 172% in 2025, Leading AI Software Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Significant Revenue Growth: Palantir's Q3 revenue surged 77% year-over-year to $883 million, primarily driven by strong performance from U.S. commercial clients, indicating the company's rapid expansion potential in the commercial sector.
- Rise of Commercial Clients: The U.S. commercial business skyrocketed 121% year-over-year to $397 million, accounting for 44% of total revenue, suggesting a successful strategic shift that may lead to it becoming Palantir's primary revenue source in the coming quarters.
- AI Platform Launch: Palantir launched its Artificial Intelligence Platform (AIP) on April 7, 2023, and since then, its stock has soared over 2,000%, reflecting market optimism that the new functionalities will drive transformative changes and future growth for the company.
- High Valuation Risks: Despite Palantir's strong performance in the AI software space, its forward P/E ratio of 173 far exceeds the S&P 500 average of 22, indicating that market expectations for its future profitability may be overly optimistic, posing a risk of valuation correction.
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: 178.400
Low
50.00
Averages
187.87
High
255.00
Current: 178.400
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.
