Palantir's Q4 Results Propel Stock Recovery
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy PLTR?
Source: Fool
- Significant Revenue Growth: Palantir's Q4 2025 revenue surged 70% year-over-year to $1.4 billion, showcasing its competitiveness in the rapidly growing AI software market, which is expected to drive future stock price increases.
- Expanding Customer Base: By the end of Q4 2025, Palantir's customer count rose 34% year-over-year to 954, indicating substantial progress in attracting new clients and expanding business with existing ones, thereby enhancing market share and revenue potential.
- Improved Profitability: Palantir's adjusted operating margin increased by 12 percentage points year-over-year to 57% in Q4 2025, reflecting successful cost control and laying a solid foundation for future profit growth.
- Optimistic Future Outlook: Palantir anticipates revenue of $7.2 billion in 2026, a 61% increase, with remaining deal value rising 105% to $11.2 billion, indicating strong growth potential and market demand.
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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: 135.680
Low
50.00
Averages
192.88
High
255.00
Current: 135.680
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 Technologies Reports Strong 2025 Financial Growth
- Significant Revenue Growth: Palantir's total revenue for Q4 2025 increased by 70% year-over-year to $1.41 billion, with U.S. revenue rising 93% to $1.08 billion, indicating strong market performance and heightened client demand.
- Government Contract Expansion: The U.S. military's contract with Palantir could be worth up to $10 billion over the next decade, further solidifying Palantir's leadership in the defense sector while providing substantial revenue streams for the company.
- Commercial Product Success: Palantir's Artificial Intelligence Platform (AIP) achieved a 137% increase in U.S. commercial revenue in 2025, demonstrating rapid acceptance and demand for its products in the commercial market, thereby enhancing the company's competitive edge.
- Strong Financial Health: By the end of 2025, Palantir held $7.2 billion in cash and short-term U.S. Treasury securities, with total debt at just $229.3 million, showcasing the company's ability to maintain financial health while pursuing growth and expansion opportunities.
See More
Palantir Expands PFCS Forward Authorization for Enhanced Deployment Flexibility
- Authorization Expansion: Palantir's PFCS Forward has extended its existing provisional authorizations to include on-premises and edge deployments, utilizing a hardware-agnostic approach that streamlines the authorization process, significantly reducing the time for customers to achieve Authorization to Operate (ATO) and enhancing deployment flexibility.
- National Security Significance: This authorization underscores Palantir's strategic importance in providing cutting-edge technology solutions for national security missions, enabling its platforms to be deployed efficiently in diverse settings, from large-scale data centers to mobile environments, thereby enhancing operational resilience and survivability.
- Stock Technical Analysis: Currently, Palantir's stock is trading 12.3% below its 20-day simple moving average and 22.3% below its 100-day simple moving average, indicating a bearish trend in the short to medium term; however, shares have increased by 15.58% over the past 12 months, positioning closer to their 52-week highs than lows.
- Analyst Expectations: The stock carries a Hold rating with an average price forecast of $193.33, with recent analyst moves showing divergence as DA Davidson and UBS lowered their targets to $180.00 while Citigroup raised its target to $260.00, reflecting mixed outlooks among analysts.
See More
AI Drives Growth for Five Major Companies
- Netflix Acquisition Opportunity: Netflix is planning to acquire Warner Bros. and its related businesses for $82.7 billion, and while this deal has dragged its stock down to the lowest valuation since early 2023, a successful acquisition would position it as the most powerful media company globally, fueling growth for years to come.
- Nvidia's Market Dominance: Nvidia's GPU chips serve as the foundational technology for nearly all AI models today, and with its high-end chips and CUDA programming, it holds a commanding market share in AI chips; the upcoming launch of its Rubin chip platform is expected to further solidify its competitive edge.
- Alphabet's AI Advantage: Alphabet's fourth-quarter earnings report showcased robust growth, particularly in Google Search and Cloud services, and with its comprehensive AI technology stack and vast user base, the stock is anticipated to remain a long-term winner as the company continues to expand.
- Amazon's Investment Outlook: Although Amazon's stock has fallen nearly 20% due to a $200 billion spending plan, these investments indicate management's recognition of significant future growth opportunities; the spread of AI is expected to drive cloud service growth and reduce costs in its e-commerce supply chain, promising substantial returns for investors in the long run.
See More
Palantir Receives U.S. Government Authorization to Expand Cloud Services
- Government Authorization: Palantir received authorization from the Defense Information Systems Agency, allowing its Federal Cloud Service to be deployed on-premises and at the edge, enhancing the company's competitiveness in the defense sector.
- Hardware Agnosticism: The new authorization enables Palantir's tech stack to operate on any hardware, supporting multi-vendor architectures for mission-critical deployments, thereby enhancing the government's technological edge in combat scenarios.
- Strategic Statement: Akash Jain, President of Palantir USG, emphasized that the future of warfare requires software capable of operating in diverse environments, and the PFCS Forward authorization is designed to meet this need, ensuring the survivability and resilience of warfighters.
- Investor Attention: Investor Michael Burry expressed a cautious view on Palantir, although the stock saw a slight increase in premarket trading, indicating market interest and expectations regarding the company's future developments.
See More
Palantir's Q4 Results Propel Stock Recovery
- Significant Revenue Growth: Palantir's Q4 2025 revenue surged 70% year-over-year to $1.4 billion, showcasing its competitiveness in the rapidly growing AI software market, which is expected to drive future stock price increases.
- Expanding Customer Base: By the end of Q4 2025, Palantir's customer count rose 34% year-over-year to 954, indicating substantial progress in attracting new clients and expanding business with existing ones, thereby enhancing market share and revenue potential.
- Improved Profitability: Palantir's adjusted operating margin increased by 12 percentage points year-over-year to 57% in Q4 2025, reflecting successful cost control and laying a solid foundation for future profit growth.
- Optimistic Future Outlook: Palantir anticipates revenue of $7.2 billion in 2026, a 61% increase, with remaining deal value rising 105% to $11.2 billion, indicating strong growth potential and market demand.
See More
AI Stocks Reset: From Hype to Profits
- Market Sentiment Shift: Investors are transitioning from hype-driven valuations of AI stocks like Nvidia, Palantir, and Microsoft to a focus on actual execution and profitability, resulting in significant sell-offs that reflect market fatigue towards short-term speculation.
- Price Movement Analysis: As of February 6, 2026, Nvidia, Palantir, and Microsoft saw stock price increases of 0.80%, 2.66%, and 2.10% respectively, indicating that despite selling pressure, some investors remain optimistic about the long-term potential of these companies.
- Investor Strategy Adjustment: The video emphasizes that long-term investors should reassess their investment strategies in the AI sector, focusing on actual performance rather than short-term market sentiment to maintain competitiveness amid future market fluctuations.
- Future Outlook: As the market shifts its focus towards profitability in AI stocks, investors need to closely monitor these companies' financial reports and execution capabilities to make informed investment decisions in an evolving market landscape.
See More
Palantir Technologies Reports Strong 2025 Financial Growth
- Significant Revenue Growth: Palantir's total revenue for Q4 2025 increased by 70% year-over-year to $1.41 billion, with U.S. revenue rising 93% to $1.08 billion, indicating strong market performance and heightened client demand.
- Government Contract Expansion: The U.S. military's contract with Palantir could be worth up to $10 billion over the next decade, further solidifying Palantir's leadership in the defense sector while providing substantial revenue streams for the company.
- Commercial Product Success: Palantir's Artificial Intelligence Platform (AIP) achieved a 137% increase in U.S. commercial revenue in 2025, demonstrating rapid acceptance and demand for its products in the commercial market, thereby enhancing the company's competitive edge.
- Strong Financial Health: By the end of 2025, Palantir held $7.2 billion in cash and short-term U.S. Treasury securities, with total debt at just $229.3 million, showcasing the company's ability to maintain financial health while pursuing growth and expansion opportunities.
See More
Palantir Expands PFCS Forward Authorization for Enhanced Deployment Flexibility
- Authorization Expansion: Palantir's PFCS Forward has extended its existing provisional authorizations to include on-premises and edge deployments, utilizing a hardware-agnostic approach that streamlines the authorization process, significantly reducing the time for customers to achieve Authorization to Operate (ATO) and enhancing deployment flexibility.
- National Security Significance: This authorization underscores Palantir's strategic importance in providing cutting-edge technology solutions for national security missions, enabling its platforms to be deployed efficiently in diverse settings, from large-scale data centers to mobile environments, thereby enhancing operational resilience and survivability.
- Stock Technical Analysis: Currently, Palantir's stock is trading 12.3% below its 20-day simple moving average and 22.3% below its 100-day simple moving average, indicating a bearish trend in the short to medium term; however, shares have increased by 15.58% over the past 12 months, positioning closer to their 52-week highs than lows.
- Analyst Expectations: The stock carries a Hold rating with an average price forecast of $193.33, with recent analyst moves showing divergence as DA Davidson and UBS lowered their targets to $180.00 while Citigroup raised its target to $260.00, reflecting mixed outlooks among analysts.
See More
AI Drives Growth for Five Major Companies
- Netflix Acquisition Opportunity: Netflix is planning to acquire Warner Bros. and its related businesses for $82.7 billion, and while this deal has dragged its stock down to the lowest valuation since early 2023, a successful acquisition would position it as the most powerful media company globally, fueling growth for years to come.
- Nvidia's Market Dominance: Nvidia's GPU chips serve as the foundational technology for nearly all AI models today, and with its high-end chips and CUDA programming, it holds a commanding market share in AI chips; the upcoming launch of its Rubin chip platform is expected to further solidify its competitive edge.
- Alphabet's AI Advantage: Alphabet's fourth-quarter earnings report showcased robust growth, particularly in Google Search and Cloud services, and with its comprehensive AI technology stack and vast user base, the stock is anticipated to remain a long-term winner as the company continues to expand.
- Amazon's Investment Outlook: Although Amazon's stock has fallen nearly 20% due to a $200 billion spending plan, these investments indicate management's recognition of significant future growth opportunities; the spread of AI is expected to drive cloud service growth and reduce costs in its e-commerce supply chain, promising substantial returns for investors in the long run.
See More
Palantir Receives U.S. Government Authorization to Expand Cloud Services
- Government Authorization: Palantir received authorization from the Defense Information Systems Agency, allowing its Federal Cloud Service to be deployed on-premises and at the edge, enhancing the company's competitiveness in the defense sector.
- Hardware Agnosticism: The new authorization enables Palantir's tech stack to operate on any hardware, supporting multi-vendor architectures for mission-critical deployments, thereby enhancing the government's technological edge in combat scenarios.
- Strategic Statement: Akash Jain, President of Palantir USG, emphasized that the future of warfare requires software capable of operating in diverse environments, and the PFCS Forward authorization is designed to meet this need, ensuring the survivability and resilience of warfighters.
- Investor Attention: Investor Michael Burry expressed a cautious view on Palantir, although the stock saw a slight increase in premarket trading, indicating market interest and expectations regarding the company's future developments.
See More
Palantir's Q4 Results Propel Stock Recovery
- Significant Revenue Growth: Palantir's Q4 2025 revenue surged 70% year-over-year to $1.4 billion, showcasing its competitiveness in the rapidly growing AI software market, which is expected to drive future stock price increases.
- Expanding Customer Base: By the end of Q4 2025, Palantir's customer count rose 34% year-over-year to 954, indicating substantial progress in attracting new clients and expanding business with existing ones, thereby enhancing market share and revenue potential.
- Improved Profitability: Palantir's adjusted operating margin increased by 12 percentage points year-over-year to 57% in Q4 2025, reflecting successful cost control and laying a solid foundation for future profit growth.
- Optimistic Future Outlook: Palantir anticipates revenue of $7.2 billion in 2026, a 61% increase, with remaining deal value rising 105% to $11.2 billion, indicating strong growth potential and market demand.
See More
AI Stocks Reset: From Hype to Profits
- Market Sentiment Shift: Investors are transitioning from hype-driven valuations of AI stocks like Nvidia, Palantir, and Microsoft to a focus on actual execution and profitability, resulting in significant sell-offs that reflect market fatigue towards short-term speculation.
- Price Movement Analysis: As of February 6, 2026, Nvidia, Palantir, and Microsoft saw stock price increases of 0.80%, 2.66%, and 2.10% respectively, indicating that despite selling pressure, some investors remain optimistic about the long-term potential of these companies.
- Investor Strategy Adjustment: The video emphasizes that long-term investors should reassess their investment strategies in the AI sector, focusing on actual performance rather than short-term market sentiment to maintain competitiveness amid future market fluctuations.
- Future Outlook: As the market shifts its focus towards profitability in AI stocks, investors need to closely monitor these companies' financial reports and execution capabilities to make informed investment decisions in an evolving market landscape.
See More
