William Blair Upgrades Palantir to Outperform Ahead of Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 11h ago
0mins
Source: CNBC
- Rating Upgrade: William Blair upgraded Palantir from market perform to outperform, with analyst Louie DiPalma setting a price target of $200 per share, indicating a 36% upside from current levels, reflecting confidence in the company's future performance.
- Stock Volatility: Although Palantir's stock has plunged 29% since reaching a record high in November, it remains 78% higher over the past 12 months, indicating strong investor sentiment and suggesting a buying opportunity given the company's leadership in the AI ecosystem.
- Earnings Expectations: Palantir is set to report its fourth-quarter earnings after market close on February 2, with analysts anticipating strong performance, particularly due to ongoing workflow additions from both government and commercial sectors, highlighting the company's active market presence.
- Future Outlook: DiPalma expects Palantir's operating margin to increase from 50% to 65% over the next five years and forecasts the company will generate at least $7 billion in free cash flow by 2030, reflecting sustained revenue growth and continued margin expansion potential.
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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: 146.590
Low
50.00
Averages
192.88
High
255.00
Current: 146.590
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 Reports Q4 2025 Earnings, Stock Soars
- Earnings Beat: Palantir reported Q4 2025 revenue of $1.41 billion, surpassing analysts' expectations of $1.34 billion, demonstrating strong performance in the data and software sector, which boosts investor confidence.
- Profitability Improvement: The company posted adjusted earnings per share of $0.25, exceeding the anticipated $0.23, indicating ongoing enhancements in profitability that may attract more investor interest in its stock.
- Optimistic 2026 Outlook: Management projects 2026 revenue between $7.18 billion and $7.2 billion, representing over 60% year-over-year growth, providing compelling reasons for investors to consider buying, potentially driving the stock price higher.
- Free Cash Flow Expectations: Palantir anticipates adjusted free cash flow of $3.925 billion to $4.125 billion for 2026, with the midpoint indicating a 77% year-over-year increase, showcasing the company's future financial health and growth potential.
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Palantir Surpasses Q4 Earnings Expectations, Upgraded by Analysts
- Earnings Beat: Palantir reported a 69% sales growth in Q4, exceeding market expectations and demonstrating rapid adoption of its data integration and analytics platforms among government and commercial clients, solidifying its leadership in the AI sector.
- Analyst Upgrade: Prior to the earnings release, William Blair upgraded Palantir's stock rating to 'outperform' with a $200 price target, projecting $7 billion in free cash flow by 2030, reflecting strong confidence in the company's future growth.
- Contract Value Surge: The total contract value rose by 138% in Q4, indicating sustained demand for Palantir's solutions in the market, enhancing the sustainability and stability of its future revenues.
- Strong Market Performance: Palantir's stock closed up 0.81% on Monday and continued to rise in after-hours trading, showcasing investor optimism about its future performance, despite its valuation being as high as 100 times next year's free cash flow.
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