Palantir Technologies stock (PLTR) has skyrocketed over 400% in just 12 months, trouncing the S&P 500’s (SPY) modest 13.8% gain. And now, TipRanks’ AI-powered analyst just dropped the mic with a bold verdict: “Outperform,” backed by explosive growth metrics and technical strength that most Wall Street names can only dream of.
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AI Assigns Palantir a Powerful “Outperform” Rating
According to TipRanks’ proprietary AI analyst, Palantir earns a resounding “Outperform” rating of 73 out of 100. That puts it squarely in elite territory, thanks to one key factor: the stock’s performance has torched the market with a staggering +407% run over the past year.
And it’s not just price action that has impressed the algorithm. TipRanks AI highlighted explosive EPS growth (82.5%), robust revenue growth (41.6%), and a fat P/E of 625—all signaling investor confidence and future earnings potential. Palantir’s stock price is currently $142.50, with a TipRanks price target of $146.00, suggesting more upside.
TipRanks AI Is Bullish on the Business and the Balance Sheet
Palantir’s metrics scream momentum. Revenue surged 41.6% year over year. Gross margins are a monstrous 80%. Net profit margins have climbed to 18.3%, and EBITDA has turned sharply positive. Free cash flow also looks rock solid, with a 15.5% jump and strong ratios to net income.
Even better? The balance sheet is a fortress. Palantir boasts an equity ratio of 80.5% and one of the lowest debt-to-equity ratios in tech (just 0.05). Translation: the company isn’t just growing—it’s doing it with discipline.
Demand for AI Is Driving a Commercial Surge
In Q1 2025 alone, Palantir’s U.S. commercial revenue exploded by 71%, now accounting for the majority of the business. The company locked in $810 million in TCV (total contract value), a 239% increase from last year. Government deals are also red-hot, with U.S. and international contracts both climbing 45%.
Customer count surged to 769, up 39% year over year. This is textbook hypergrowth. And with AI adoption only accelerating, Palantir’s software stack—particularly AIP (Artificial Intelligence Platform)—is perfectly positioned to ride the wave.
Technicals Flash Bullish across the Board
Palantir’s chart is radiating strength. The stock is trading comfortably above all its key moving averages, with the 50-day at $129.62, the 100-day at $110.43, and the 200-day trailing at $87.45. Each of these levels carries a “Positive” signal, underscoring just how well the stock has held its trend through pullbacks.
Momentum indicators are backing up the story. The MACD reads at a healthy 3.25, suggesting a continuation of bullish pressure. Meanwhile, the RSI sits at 58.97 and the Stochastic oscillator at 71.69—both in neutral territory. That’s key. It means Palantir isn’t overbought yet, giving the stock runway for more upside before traders start worrying about a cool-off.
Risks? Yes. But Momentum Is Winning
No story is without friction. TipRanks AI flagged some risks: fierce competition from OpenAI, challenges in the European market, and valuation concerns given the lofty P/E.
Still, even these risks aren’t slowing down institutional interest or commercial adoption. And TipRanks’ AI model still gives Palantir the edge.
Is Palantir a Good Stock to Purchase?
Despite the bullish momentum on the chart, analysts remain cautious. According to TipRanks, Palantir stock currently holds a “Hold” rating, based on 17 Wall Street analyst calls in the past three months. The breakdown: 4 Buys, 9 Holds, and 4 Sells.
The average 12-month PLTR price target sits at $109.60, implying 23% downside from the current price of $142.50.
