Palantir Technologies (NYSE:PLTR) has spent the last few years at the center of the artificial intelligence conversation, and few CEOs lean into that spotlight quite like Alex Karp. Known for his unconventional style and philosophical tone, Karp has repeatedly urged investors to ignore Wall Street skepticism and trust Palantir’s long-term vision.
During the 2024 holiday season, Karp went so far as to publicly thank Palantir stock bulls for rejecting what he called Wall Street’s “rusty, crusty platitudes.” At the time, critics dismissed the message as pure hype. As 2025 wraps up, however, it’s fair to ask whether Palantir’s true believers were rewarded—and what the outlook for Palantir stock looks like heading into 2026.
How Palantir Stock Performed in 2025
For years, Palantir stock was viewed as an odd fit in the tech sector. Its reliance on government contracts, combined with ambitious commercial expansion plans, made it difficult for analysts to categorize. Add in a CEO who often sounds more like a philosopher than a corporate executive, and skepticism was inevitable.
In 2025, that skepticism largely evaporated.
Palantir stock more than doubled this year, marking the third consecutive year of triple-digit gains. That kind of sustained performance is rare for a software company of Palantir’s size and maturity. Few peers have delivered multi-year returns at this scale without a dramatic shift in business fundamentals.
Those fundamentals, however, appear to be improving. Palantir reported 63% revenue growth in Q3, with U.S. commercial revenue growing even faster. Government contracts remain a core pillar, but commercial adoption of Palantir’s AI platforms has accelerated meaningfully, reinforcing the company’s long-term growth narrative.
For investors who held through volatility and ignored bearish commentary, 2025 felt like validation. Palantir stock didn’t just rise—it crushed expectations.
Alex Karp’s Vision vs. Wall Street Consensus
Alex Karp has always framed Palantir as a company built on conviction rather than consensus. That philosophy resonated with a growing base of retail and institutional investors who believed AI adoption would eventually favor platforms capable of handling complex, mission-critical data.
In 2025, Karp’s message gained credibility. Palantir continued to beat earnings expectations, expand margins, and sign larger, longer-term contracts. The company’s Artificial Intelligence Platform (AIP) gained traction across industries ranging from defense to healthcare and manufacturing.
For Palantir stock bulls, the narrative shifted from “promise” to “proof.”
Why Some Investors Remain Skeptical
Despite its remarkable performance, Palantir stock still has vocal critics. The primary concern is valuation.
Even after adjusting for rapid growth, Palantir trades at elevated price-to-sales and forward earnings multiples compared to traditional software peers. To skeptics, the stock’s price appears to have raced ahead of its underlying fundamentals.
This concern isn’t limited to Palantir alone. Broader unease about AI valuations has begun to surface across the market. Many investors worry that enthusiasm for artificial intelligence may be running ahead of sustainable earnings growth.
Notably, hedge fund manager Michael Burry has taken a bearish stance. Reports indicate he purchased roughly $9 million in put options against Palantir Technologies (NASDAQ:PLTR), betting that AI-related revenue growth could slow in 2026 and trigger a valuation reset.
That contrast—between long-term conviction and short-term caution—defines the current Palantir stock debate.
What’s Ahead for Palantir Stock in 2026?
Looking forward, Palantir faces both opportunity and risk. On one hand, demand for enterprise AI solutions continues to expand, and Palantir’s deep integration into customer workflows gives it a competitive edge. If revenue growth remains strong and margins continue to improve, Palantir stock could justify its premium valuation.
On the other hand, momentum markets can be unforgiving. Any slowdown in contract wins, pricing power, or AI adoption could trigger sharp pullbacks, especially given how far the stock has already run.
For Alex Karp’s loyal base of investors, 2025 felt like a triumph of conviction over conventional wisdom. For skeptics, it may look like the late stages of an AI-fueled rally.
Bottom Line on Palantir Stock
Palantir stock delivered exactly what its CEO promised in 2025: outsized gains backed by accelerating business performance. Whether that momentum continues into 2026 will depend on execution, not rhetoric.
Investors considering Palantir Technologies (NYSE:PLTR) should weigh its undeniable growth against its elevated valuation. Big wins—or painful corrections—are both possible. One thing is certain: Palantir stock will remain one of the most closely watched AI names in the market next year.
Featured Image: Megapixl
Author Stephanie Bédard-Châteauneuf 
