Palantir Technologies (NASDAQ:PLTR) remains one of the most polarizing names in the tech sector. Investor sentiment is sharply divided: some hail the company’s rapid execution and expanding AI capabilities, while others worry about its premium valuation. Yet Truist Securities analyst Arvind Ramnani is clearly bullish, projecting that Palantir stock 2026 could gain another 20% as the company scales its operations and capitalizes on artificial intelligence (AI) adoption.
Ramnani initiated coverage with a “Buy” rating, emphasizing Palantir’s growing influence in both government and commercial sectors. He cited the company’s revenue momentum as a differentiator, noting U.S. government revenue rose 50% year-over-year (YOY) for two consecutive quarters, while commercial revenue surged 73%. Improving profitability, with operating margins exceeding 50% and top-line growth in tandem, supports a potential path toward a sustainable “Rule of 80+” performance profile.
International expansion is also on the horizon. While the U.S. anchors growth, Palantir is actively pursuing commercial and government contracts abroad, diversifying its revenue base and reinforcing the durability of its growth outlook.
About Palantir Stock
Denver, Colorado-based Palantir develops advanced platforms for data integration, counterterrorism, and enterprise AI applications. Its Gotham, Foundry, and Apollo platforms enable secure deployment, pattern recognition, and enterprise-scale AI activation across industries.
Palantir’s shares have delivered impressive returns. PLTR stock surged 159.2% over the past 52 weeks and 26.6% over the past six months, comfortably outpacing the tech-heavy Nasdaq Composite (NASDAQ:COMP), which rose 20.54% and 15% over the same periods.
Valuation remains a central consideration. PLTR trades at 226.21 times forward adjusted earnings and 98.29 times forward sales, well above sector norms. Investors appear willing to pay a premium for strong revenue growth, expanding margins, and the potential long-term leverage that AI integration may bring.
Palantir Surpasses Q3 Earnings Expectations
Palantir’s fiscal 2025 third-quarter results, reported on Nov. 3, exceeded Wall Street expectations. Revenue climbed 62.8% YOY to $1.18 billion, surpassing the $1.09 billion consensus forecast. Adjusted EPS of $0.21 also beat analyst estimates of $0.17.
The U.S. business remained the primary growth driver. Domestic revenue rose 77% YOY to $883 million, while U.S. commercial revenue jumped 121% to $397 million, fueled by rapid adoption of Palantir’s Artificial Intelligence Platform (AIP).
Commercial momentum translated into record deal activity. Palantir closed 204 contracts worth at least $1 million, including 91 deals above $5 million and 53 deals exceeding $10 million. Total contract value reached $2.76 billion—a 151% YOY increase—while customer count expanded 45%.
Markets initially reacted positively, lifting PLTR shares 3.4% on the earnings announcement. However, valuation concerns reemerged, and Michael Burry’s purchase of put options on five million shares added downward pressure, sending the stock down 7.9% in the following session.
Looking ahead, Palantir expects Q4 fiscal 2025 revenue of $1.327–$1.331 billion. For the full year, revenue guidance has been raised to $4.396–$4.400 billion. Analysts forecast Q4 EPS of $0.17 (up 1,800% YOY) and full-year 2025 earnings of $0.52, followed by a projected 51.9% jump to $0.79 in fiscal 2026.
Analyst Sentiment on Palantir Stock for 2026
Truist Securities is bullish, assigning a “Buy” rating with a $223 price target to Palantir stock, reflecting confidence in the company’s AI-driven growth trajectory.
Wall Street at large is more cautious, giving Palantir stock an overall “Hold” rating. Of 21 analysts covering the stock, five rate it “Strong Buy,” 13 “Hold,” one “Moderate Sell,” and two “Strong Sell.” This diversity underscores the tension between rapid growth and high valuation.
Price targets indicate significant upside potential. The mean analyst target of $192.67 suggests roughly 9% growth from current levels, while the Street-high of $255 implies a gain of 44.18%. With accelerating AI adoption, robust contract expansion, and international growth on the horizon, the Palantir stock 2026 story remains compelling for investors with a long-term horizon.
Palantir continues to demonstrate that a premium valuation may be justified by high growth, AI integration, and market-leading platforms. While near-term volatility may persist, analysts see meaningful upside potential as PLTR leverages its technology to capture both domestic and international opportunities in the coming year.
Featured Image: Megapixl
Author Stephanie Bédard-Châteauneuf 
