Key Stats for PLTR Stock
- Past week’s performance: -1.36%
- 52-week range: $106 to $208
- Valuation model target price: $245
- Implied upside: 38.2% over 2.3 years
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Palantir Just Posted Its Fastest Growth Ever
Palantir Technologies (PLTR) delivered a quarter that even skeptics struggled to dismiss. Revenue surged 93% year over year to $1.94 billion, and that beat the consensus estimate of $1.8 billion by more than 7%. Adjusted earnings per share came in at $0.41, well ahead of the $0.35 analysts expected. Because of these results, the stock has rallied more than 40% over the past month.
U.S. commercial revenue stood out most, jumping 149% year over year to $764 million. U.S. government revenue climbed 90% to $809 million, and total U.S. revenue grew 115% to $1.57 billion. So the growth isn’t coming from just one segment.
Management didn’t hesitate to raise expectations. Full-year 2026 revenue guidance moved to approximately $8.15 billion, implying 82% growth. U.S. commercial revenue guidance rose to “in excess of” $3.42 billion, or 134% growth. The company’s Rule of 40 score, which combines revenue growth and operating margin, reached a record 155.
CEO Alex Karp didn’t undersell the results. He described the quarter as “otherworldly” and told CNBC, “Forget consensus. To my knowledge, no business at our scale has ever grown half this much.” Karp has also argued that customers using frontier AI labs directly hand over their data and expertise, while Palantir’s platform keeps client data isolated.
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Is PLTR Stock Still Undervalued After the Rally?
Under valuation model assumptions realized through 12/31/28, the stock is modeled using:
- Revenue Growth (CAGR): 50.0%
- Operating Margins: 50.0%
- Exit P/E Multiple: 70.0x
Based on these inputs, the model estimates a target price of $245. That implies 38.2% total upside from the current share price and a 14.7% annualized return over the next 2.3 years.
A 14.7% annualized return lands right at the edge of the moderately attractive range. That’s notable given Palantir trades near 93x forward earnings, among the richest multiples in software. The model’s 50% revenue growth assumption sits below the 93% pace Palantir just posted, so it isn’t demanding triple-digit growth forever, just that growth stays elevated for several more years.
Operating margins of 50% represent continued expansion from current levels. But Palantir already posted an all-time high operating margin of 62% this quarter on a non-GAAP basis, so the assumption looks achievable rather than aggressive. The 70x exit multiple is a steep number by any historical software standard, yet it sits below Palantir’s current 93x NTM P/E.
Compared to its own trading history, Palantir looks less stretched than the headline multiple suggests. The stock’s Rule of 40 score of 155 runs roughly triple the threshold typically considered strong for software companies. Because few peers can point to accelerating growth at this scale, even a conservative model still shows meaningful upside.
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Palantir vs. Snowflake and C3.ai on Growth and Profitability
Palantir’s closest software comparisons are Snowflake (SNOW) and C3.ai (AI). The gap between them explains why Palantir commands such a premium multiple. Snowflake’s revenue growth runs closer to 30% annually, less than a third of Palantir’s 93% pace, even though Snowflake also serves large enterprise data customers.
C3.ai trades at a much lower valuation, but its revenue growth actually decelerated toward the 20% range in recent quarters. The company also remains unprofitable on a GAAP basis. Palantir, by contrast, posted GAAP net income of $1.07 billion this quarter and adjusted free cash flow of $1.22 billion, putting real profitability behind its growth story.
Palantir’s moat is its ontology-based architecture, which lets customers build applications on top of their own data. Karp has framed this directly against competitors, arguing that businesses relying purely on frontier AI labs are “token maxing” away their competitive advantage. That pitch drove a record 220 deals worth $1 million or more this quarter.
The one area where Palantir trails its own growth story is international expansion. Non-U.S. revenue grew just 34% year over year, compared to 93% overall, and some analysts project non-U.S. sales could shrink to just 13% of total revenue by 2028.
What’s Driving PLTR Stock Going Forward?
The next earnings report lands in early November. Investors will want confirmation that the 82% full-year growth guidance holds, especially since Karp publicly stated he expects the current growth rate to persist for at least another 18 months.
International expansion remains the biggest swing factor. Non-U.S. revenue is growing at roughly a third the pace of U.S. revenue, and some political resistance in Europe ties to Palantir’s perceived closeness to U.S. defense and government work. Closing that gap could unlock a meaningful new growth leg.
Palantir’s Maven platform is also becoming a bigger story. The defense-focused AI platform now supports more than 25,000 builders, and William Blair recently flagged Maven as on track for $1 billion in annual recurring revenue.
Karp has grown increasingly vocal about the risks of relying on frontier AI labs, even joining other tech leaders in a letter opposing restrictions on open-weight models. That positioning could keep driving new customer wins.
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Should You Invest in Palantir?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
