Palantir Technologies (NASDAQ:PLTR) is gaining ground in the defense and AI sectors, positioning itself as a critical player in government technology. As defense budgets expand and data-driven operations become standard, Palantir is securing a larger role in both military and commercial markets. The company’s recent wins in defense contracts, alongside a fast-growing enterprise segment, have fueled investor enthusiasm, even as Palantir stock faces scrutiny for high valuations.
Analyst sentiment is turning increasingly bullish. Wedbush Securities’ Dan Ives raised his price target on PLTR ahead of its Q3 2025 earnings, maintaining an “Outperform” rating. Ives cites Palantir’s unique role in AI adoption and government contracts as a major growth driver, dubbing the company an emerging “AI juggernaut.”
About Palantir Stock
Palantir develops software platforms designed to integrate, manage, and secure large datasets across government and commercial clients. Its main offerings—Gotham, Foundry, Apollo, and the newer Artificial Intelligence Platform (AIP)—enable clients to leverage data analytics and AI for decision-making. Headquartered in Denver, Colorado, Palantir has grown from its government intelligence roots into a broader enterprise technology company.
The stock has surged over the past year, with a 52-week gain of roughly 215.9% and a YTD increase of 131.9%. On Nov. 3, Palantir stock reached a 52-week high of $207.52 before closing at $207.18. Despite this rally, the stock dipped 7.9% on Nov. 4 following Q3 results, reflecting investor concern about its premium valuation of 416.7 times forward earnings.
Strong Revenue Growth
Palantir’s Q3 2025 results highlight the company’s accelerating growth. Revenue totaled $1.181 billion, a 63% year-over-year (YOY) increase, exceeding expectations. Adjusted earnings per share rose to $0.21, surpassing analyst consensus.
The U.S. commercial segment was a standout, climbing 121% YOY to approximately $397 million, while U.S. government revenue increased 52% YOY to $486 million. The company closed 204 contracts of at least $1 million, 91 contracts of $5 million or more, and 53 contracts of $10 million or more, with total contract value reaching $2.76 billion, up 151% YOY.
For Q4 2025, Palantir projects revenue between $1.327 billion and $1.331 billion. The full-year 2025 outlook anticipates revenue of $4.396–$4.400 billion and adjusted operating income of $2.151–$2.155 billion. Analysts expect EPS to rise 512.5% YOY to $0.49 in 2025 and grow another 32.7% to $0.65 in 2026.
Analyst Outlook
Wedbush Securities has set a new price target of $230 for PLTR, citing strong adoption of the AIP platform and the impact of AI bootcamps on accelerating sales cycles. Ives believes Palantir could scale into a multi-billion-dollar AI enterprise, with potential to reach trillion-dollar valuation within two to three years.
Despite optimism, the broader Street remains cautious. Of 21 analysts covering Palantir stock, four recommend a “Strong Buy,” 14 suggest “Hold,” one offers a “Moderate Sell,” and two rate it “Strong Sell.” The stock trades roughly 5% below the average price target of $183.89, while the Street-high target of $255 implies a potential upside of 46%.
Conclusion
Palantir stock (NASDAQ:PLTR) is at a pivotal point. Strong revenue growth, defense and commercial contract wins, and AI adoption make it a compelling investment story. Yet lofty valuations and mixed analyst sentiment suggest careful consideration. For investors focused on AI and defense-tech tailwinds, PLTR could present a strategic long-term opportunity, but volatility remains a key factor in timing any purchase.
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