Artificial intelligence (AI)-powered data analytics company Palantir Technologies (PLTR) is scheduled to announce its results for the fourth quarter of 2025 on February 2. Ahead of Q4 2025 earnings, RBC Capital analyst Rishi Jaluria reiterated a Sell rating on PLTR stock with a price target of $50 (downside risk of about 70%) and flagged certain concerns, including doubts about the durability of the momentum in the company’s Commercial business.
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Palantir Technologies stock has declined 11% over the past month amid concerns about elevated valuations of AI plays and macro headwinds. However, shares are still up more than 122% over the past year. The company has been impressing investors with stellar growth across its Commercial and Government businesses, driven by rising adoption of its Artificial Intelligence Platform (AIP).
Wall Street expects PLTR to report earnings per share (EPS) of $0.23 for Q4 2025, reflecting a 64.3% year-over-year growth. Furthermore, revenue is expected to increase by 62% to $1.34 billion.
RBC Capital Flags Concerns Heading into PLTR’s Q4 Earnings
Jaluria highlighted three “themes” based on his firm’s government spending tracker, checks, and investor conversations.
- RBC Capital’s government data tracker indicates a fall in qualified contract value (QCV) and net new annual contract value (ACV). However, the analyst believes that geopolitical uncertainty could fuel longer-term demand.
- There is rising concern about the sustainability of the momentum in Palantir’s Commercial segment, with indications that some customers are reconsidering or shifting away from the company. Jaluria remains cautious on the Commercial business due to intense competition.
- The analyst also cited “a self-fulfilling prophecy risk,” noting that the strength in the Commercial business could continue despite durability concerns.
Overall, Jaluria believes that PLTR stock’s risk/reward is “skewed to the downside.” The analyst also thinks that retail investors might be starting to get annoyed due to the lack of any capital returns, despite the company’s $6 billion cash balance.
Is PLTR Stock a Buy, Sell, or Hold?
Overall, Wall Street has a Hold consensus rating on Palantir Technologies stock based on 10 Holds, six Buys, and two Sell recommendations. The average PLTR stock price target of $189.94 indicates 14.1% upside potential.
