Shares of Palantir Technologies (NASDAQ:PLTR | PLTR Price Prediction) continued their losing streak to start the year, losing 1.66% over the past five trading sessions after losing 5.54% the five prior. Over the past year, the stock is up nearly 120%, and since its October 2022 IPO, PLTR has surged an eye-catching 1,701.09%. But since its all-time high on Nov. 3, 2025, shares are down more than 20%.
When the company reported Q3 earnings on Nov. 3, 2025, it beat on the top and bottom lines with EPS of 21 cents versus 17 cents expected, and revenue of $1.18 billion versus $1.09 billion expected. Palantir issued strong guidance, attributing growth to adoption of its AI software platform. Meanwhile, it announced that government sales — which have been essential to Palantir’s rise — grew 52% from the same quarter a year ago.
In September 2025, it was reported that the company agreed to a £1.5 billion defense deal with the U.K. That comes not he back of an announcement in early August that the U.S. Army is consolidating 75 contracts into a single 10-year arrangement with Palantir valued at $10 billion. However, the so-called smart money have been selling the stock in flurries lately, leaving Palantir’s institutional ownership at just 56.22%. JPMorgan, for example, recently reduced its position in PLTR by more than 32%, while T. Rowe Price reduced its position by nearly 24%.
While the stock’s forward P/E ratio of 166.67 can be concerning, Palantir’s federal contracts and aerospace ties are expected to continue fueling growth. While earnings are rear-facing, the emerging trends seen in the company’s Q3 results can serve as a foundation for further rewards for shareholders.
However, PLTR’s market multiple implies it could take an investor nearly half a century to recover their initial investment, assuming earnings remained constant. But the assumption from the company — and from Wall Street analysts — is that earnings will continue to grow. So while there is concern about its valuation, what can investors expect from Palantir over the next year? 24/7 Wall St. did some analysis, so let’s take a look at.
Why Invest in Palantir?
The AI environment is ripe for growth, though, of which Palantir should play a major part. According to Grand View Research, the AI market is expected to reach $1.811 trillion by the end of the decade, good for a 35.9% compound annual growth rate (CAGR) between 2025 and 2030. The global market size of AI in 2024 was $279.2 billion, meaning at that forecasted CAGR, by the end of 2025, the market should expand to $379.4 billion. Companies like Palantir that focus on broad AI applications in diverse industries should see the lion’s share of that growth.
Not only has the company seen sizable growth, it forecasts sustainable momentum that will help continue that pattern over the course of the next year. High-profile contracts, like the recently signed Army and ICE deals, as well as NATO’s adoption of its AI-enabled military system, highlight its critical role in national security. President Trump’s emphasis on defense and government efficiency, exemplified by the Department of Government Efficiency led by Elon Musk, positions Palantir as a go-to AI software provider, boosting investor confidence amid tariff-related market challenges.
Additionally, the company’s commercial segment has skyrocketed. Its Artificial Intelligence Platform (AIP), launched in 2023, empowers enterprises in healthcare, finance, and manufacturing to harness AI for data analytics. Palantir’s focus on operational efficiency has improved profitability. Its software-as-a-service model, with high-margin recurring revenue, supports scalability across government and commercial clients. The company’s ability to deploy AIP rapidly, as shown by a 69% increase in customer count to 593, enhances revenue predictability. This profitability, coupled with $3.9 billion in cash reserves, fuels R&D and market expansion, reinforcing investor optimism.
Palantir (PLTR) as a Stock
Since its IPO, Palantir has seen uncommon and exponential share appreciation. An enormous part of that growth came between February 2023 and February 2025, during which time the stock reached its then-all-time-high on Feb. 18.
Most Wall Street analysts are cautious about the stock, though. The 18 analysts covering PLTR assign it a consensus “Hold” rating, with six analysts giving it a “Buy” rating, 10 giving it a “Hold” rating and two giving it a “Sell” rating. However, price targets for the AI darling represent a vast spread of opinions, with the high-end price target at $255, the median price target at $190.06 and the low-end price target at $50.00.
| Estimate | Price Target | %Change From Current Price |
| Low | $50.00 | -69.82% |
| Median | $189.94 | 14.62% |
| High | $235.00 | 41.82% |
Palantir Technologies 2026 Outlook
Palantir has made several important announcements over the past few months, including its $10 billion Army deal and a $30 million contract with ICE to develop a system to help with deportations, as well as a partnership with TWG Global and xAI to bring AI to the financial services industry. That news has driven the stock higher in the short term. But as the broad market’s outlook remains clouded, so too does Palantir’s. That is reflected in Wall Street’s consensus “Hold” rating.
Palantir calls for a minimum 68% jump in commercial revenue to $1.178 billion, with CEO Alex Karp saying, “We are delivering the operating system for the modern enterprise in the era of AI.” While Palantir does face competition from both large AI Big Data forms, as well as smaller, fast-growing AI data analytics shops, the company can be seen as having an entrenched position within government and large enterprises.
24/7 Wall St.’s 2026 year-end price target for Palantir Technologies is $202.50, which represents potential upside of 22.20% from today’s stock price. Those figures are based on Palantir having developed the premier AI software, but the decreasing cost of AI and expansion of large language models to lower barriers to entrance in decision-making software. We see projected revenue growth rates moderating over time climb from $3.9 billion in 2025 to $11.9 billion in 2030, alongside normalized EPS growth of $0.58 in 2025 to $1.44 in 2030.
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