Palantir Technologies (PLTR) has become one of the hottest names in the AI software sector this year. The stock has soared more than 300% over the past 12 months and is up 134% year-to-date, fueled by growing demand for its AI-driven platforms, new multi-billion-dollar government deals, and a strong balance sheet.
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In its second-quarter earnings call, reported in August, Palantir posted record results, with revenue up 48% year over year to reach $1.004 billion — its first-ever billion-dollar quarter. Growth was led by a 68% jump in U.S. revenue and a 93% surge in U.S. commercial sales, showing strong adoption across both public and private sectors.
Still, while bulls see long-term potential in Palantir’s expanding AI footprint, skeptics remain cautious about the stock’s high valuation after such a steep rally.
Analysts Remain Split on Palantir’s Outlook
Wall Street’s view on Palantir is divided. Mizuho analyst Gregg Moskowitz kept a Neutral rating with a $165 price target, indicating about 7% downside from current levels. The analyst said much of the AI excitement is already priced in, even though Palantir is well placed to benefit from growing AI adoption across both government and private sectors. He noted that Palantir’s Artificial Intelligence Platform (AIP) remains a key growth engine, helping the company win clients faster through its AIP boot camps. Still, Moskowitz believes the stock’s high valuation limits short-term upside.
On the other hand, Bank of America analyst Mariana Perez Mora reiterated a Buy rating and raised her price target to $215 from $180. The 5-star analyst pointed to Palantir’s expanding list of government and enterprise deals, and stronger adoption of Agentic AI across field operations. Mora expects government sales to top $8 billion by 2030, with long-term revenue growth around 30% annually. She said Palantir’s steady progress in key markets shows its strong AI leadership and consistent execution.
What’s Next for Palantir Stock
Palantir is set to report its third-quarter results next month after the market close. Wall Street expects earnings of $0.17 per share, up 70% from the same period last year, with revenue near $1.09 billion, reflecting 50% year-over-year growth, according to TipRanks Analyst Forecasts.
For Fiscal 2025, the company now projects total revenue between $4.14 billion and $4.15 billion, above prior guidance. Palantir also expects U.S. commercial sales to exceed $1.3 billion, an 85% gain from last year, showing strong traction in its enterprise segment.
The upcoming earnings report could serve as a major catalyst for the stock, as investors look for signs that Palantir can sustain its rapid AI-driven growth while maintaining profitability. All eyes will be on AI adoption trends, new government contracts, and commercial deal momentum, which will likely determine the stock’s next move.
Is Palantir a Good Stock to Buy?
Currently, many analysts are sidelined on Palantir Technologies stock, mainly due to its elevated valuation. Wall Street’s Hold consensus rating on PLTR stock is based on 13 Holds, five Buys, and two Sell recommendations. The average PLTR stock price target of $156.53 indicates a possible downside of 11.67% from current levels.
