Forecasts

Palantir Technologies (PLTR) Price Prediction and Forecast 2025-2030

Joel South

Published: November 20, 2024 7:51 am

Last Updated: November 20, 2024 3:05 pm

Big Data is big business. According to platform provider Edge Delta, the market for data services is projected to grow from $220.2 billion in 2023 to $401.2 billion by 2028 — an increase of 82.2%. Palantir Technologies Inc. (NYSE: PLTR) is a major player in the space. The company was co-founded by entrepreneur and venture capitalist Peter Thiel, who was also the co-founder of PayPal and the first outside investor in Facebook.

Since going public on Sept. 30, 2020, the stock’s price has risen over 562.95%, and it has seen a gain of more than 266.80% so far in 2024. At that growth rate, a $1,000 investment in Palantir’s IPO price of $9.50 would be worth $6629.47 today.

Palantir stands as one of Big Data’s industry dominators. However, finding data-driven assessments of where the company’s stock will be in the medium and long term can be complicated. With Wall Street analysts only going as far as providing one-year price targets, it can be difficult for investors to accurately gauge predictions for stocks like these over longer horizons. But for buy-and-hold investors who want to know where Palantir’s stock might be several years down the road, 24/7 Wall Street has done the legwork and can provide insights around the numbers coming from the company, and which market segments the company is operating in that are most exciting to us.

Key Points in This Article:

• Key growth drivers: Palantir’s four operating platforms, AIP, Foundry, Gotham and Apollo.
• The company’s AI platforms are in high demand from the federal government.
• Palantir’s two strategic partnerships with space companies will leverage its AI intelligence to drive innovation in space technology.
• If you’re looking for an AI stock early in the AI growth cycle, grab a complimentary copy of our “The Next NVIDIA” report. It has a software stock that could ride dominance in AI to returns of 10x or more.

Recent Palantir Stock Updates and News

11/20/2024

Palantir’s shares are experiencing a 3.5% decline today, trading as low as $59.96.

11/19/2024

Jefferies analyst Bret Thrill has downgraded Palantir to “Underperform” from “Hold”, setting a $28 price target. This indicates a potential 60% decline from current stock prices.

11/18/2024

Palantir’s shares fell today 7.4%, which is nearly the largest decline in a single day since July. However, the company is still riding high, as its shares have increased by 255% just this year.

11/15/2024

Palantir’s stock price spiked this morning after the company announced that it will be leaving the New York Stock Exchange and joining Nasdaq.

11/14/2024

Palantir has extended its partnership with Rio Tinto, a major global mining company. This renewed agreement will keep Rio Tinto using Palantir’s AI platform for the next four years.

11/12/2024

Palantir has officially surpassed Lockheed Martin Corp in market capitalization. Yesterday, Palantir’s stock hit $60.24, an all-time high for the company.

11/8/2024

Palantir, Anthropic, and Amazon are teaming up to bring advanced AI technology to the U.S. government. The government will be able to use powerful AI tools like Claude 3 and 3.5, which will run on Amazon’s cloud services and be integrated into Palantir’s AI platform.

11/7/2024

Palantir saw a decline of 2.7% in its share price today, trading as low as $53.55. Trading volume was also slightly lower than average, with 52.5 million shares changing hands.

11/6/2024

Palantir continues to ride a wave of success as it hit all-time highs today. This surge is attributed to the company’s strong third-quarter earnings report. Palantir exceeded expectations, reporting earnings per share of six cents, surpassing analyst estimates of four cents. The company’s revenue reached $725.52 million, surpassing analyst prediction of $701.13 million and marking a 30% year-over-year increase.

11/5/2024

Palantir’s sock surged 23.5% today following the release of the company’s third-quarter earnings report. The company’s strong performance was fueled by a 40% year-over-year increase in global government spending, primarily from the U.S. government, which accounted for 56% of its total revenue.

11/4/2024

Palantir’s share price rose 0.1% today, trading as high as $42.04.

Palantir’s Results After Four Years

The following is a table that summarizes the performance in share price, revenues, and profits (net income) of PLTR from its inception in 2020 through the second quarter of 2024:

Revenue and net income in $billions

Since going public, Palantir saw its revenue grow by 35.44%, while net income fell by 65.35%. That drop in net income can be easily attributed, though. The company’s IPO in 2020 raised $2.6 billion, but that was shortly followed by 2022’s year-long bear market. Nonetheless, by 2023, the Big Data firm was able to reach profitability for the first time in its then 20-year history.

The momentum has continued with a series of earnings beats, most recently on Aug. 7, 2024, when the company reported earnings per share (EPS) of $0.09, which beat analysts’ estimates by 10.55%, and revenue of $678.23 million, which beat by 3.94%. The EPS beat was Palantir’s fourth consecutive and marked the sixth quarter in the last seven when it outperformed consensus. The company ended fiscal 2023 with around $3.7 billion in cash and liquid investments and — notably — no debt.

Key Drivers of Palantir’s Stock Performance

1. Palantir’s Expansion and Adoption of AI and Machine Learning Platforms: In addition to its AI bootcamps, the company offers clients four platforms to help manage, analyze, and secure their sensitive data. The first, AIP, focuses on introducing AI into companies’ operations. Foundry, Palantir’s operating system for modern enterprises, allows customers to harmonize and automate decision-making in complex settings while bridging the divide between core business and operating teams with data teams and modeling teams. Gotham, its third platform, focuses on a global scale, with the company billing the software as the weapons system for decision-making, which has extensive applications in defense and combat. Finally, Palantir’s Gotham platform is an operating system for continuous delivery with a focus on deployment — that is, integrating a machine-learning model into a production environment. Palantir is also making a strong push into modular sales to attract smaller clients and scale them with customer solutions as they grow. This strategy will significantly expand Palantir’s customer base and provide years of earnings growth.
2. Government demand: Palantir’s revenue from government sources has outperformed revenue from commercial sources each year since 2020, with notable growth every year. In 2023, government-sourced revenue regifted $1.222 billion compared to $1.002 billion for commercially-sourced revenue. The company’s government clients include the United States Intelligence Community and the United States Department of Defense (DoD). Palantir’s software as a service (SaaS) is one of only five that are authorized for the DoD’s Mission Critical National Security Systems. By revenue, the U.S. government is the company’s largest client, and with ever-growing defense spending as a fixture of the U.S. federal government’s budget, the relationship is ripe. Bottomline, government demand is still core to Palantir, and with modular sales, the company will pack a double punch of private and public
3. Space partnerships: On June 27, 2024, Palantir signed a strategic partnership with Voyager Space with the aim of leveraging its AI intelligence to drive innovation in space technology. According to its press release, Voyager will now fully integrate Palantir’s AI capabilities into its defense solutions, enhancing communications, military research and development, and bolstering intelligence and space research with the end goal of making space more accessible to the defense community. Voyager will be using Palantir’s Foundry platform. This marks the second strategic space partnership for the company, which also signed an agreement with Starlab Space on June 20, 2024. In this deal, Palantir became the exclusive supplier of enterprise-wide software data management solutions for the Starlab commercial space station — a planned low Earth orbit venture that is expected to launch no later than 2028 and is a joint venture between Starlab and Airbus.

Palantir (PLTR) Stock Prediction in 2025

The current consensus median one-year price target for Palantir’s stock is $37, which represents a downside potential of -40.93%.

24/7 Wall Street’s 12-month forecast projects Palantir’s stock price to be $47 with earnings per share coming in right at $0.43. We see strong CAGR growth in sales of government contracts, upwards of 26% annually, and have factored for $3.186 billion in forecast revenue.

Palantir (PLTR) Stock Forecast Through 2030

Revenue and net income in $billions

How Palantir’s Next 5 Years Could Play Out

We expect to see revenue growth of just over 20% and EPS of 47 cents for 2025. We expect the stock to still trade at a similar multiple next year, putting our estimate for the stock price for Palantir at $58 in 2025, which is -7.91% lower than the stock is trading today. We also expect the company to surpass $1 billion in free cash flow in 2025, with $1.052 billion.

Going into 2026, we forecast steady year-over-year increases for both revenue and net income of just over 21% and nearly 24%, respectively. 24/7 Wall Street’s price prediction for 2026 is $81, an upside of 28.61% over today’s stock price.

We expect to see a larger increase in revenue for 2027, and by extension, a larger gain in net income, which could breach $1 billion for the first time. Estimates are for revenue increases of 24% and an EPS increase of 23%, resulting in an annualized EPS of $0.71. We also forecast Palantir to surpass $2 billion in free cash flow by posting $2.380 billion. The stock price prediction for 2027 is $92, up 46.08%.

After breaching $1 billion in net income in 2027, we expect PLTR to take another step forward in 2028 by posting revenue of $6.104 billion, net income of $1.432 billion, and an annualized EPS of $0.79. We also forecast that the company will exceed $3 billion in free cash flow, posting $3.372 billion. The stock price for 2028 comes in at $102, an upside of 61.96%.

We expect revenue to increase to $7.208 billion for an 18% year-over-year gain, with net income growth of 22% and EPS coming in at $1.06, good for a 22.78% year-over-year gain. We also forecast free cash flow to surpass $4 billion by posting $4.566 billion. But our price-to-sales multiple will be lower as growth slows, and the price projection for the year is $114, an upside of 81.01% under today’s stock price.

Palantir Stocks Price Target for 2030

On the back of forecast revenue in excess of $8 billion, we expect Palantir’s net income to surpass $2 billion for the first time, and post an EPS of $1.27. We expect free cash flow to approach $6 billion by posting $5.895 billion. The price projection for 2030 is $125, an upside of 98.48% over today’s stock price.

Revenue and net income in $billions