Palantir is dropping on earnings. Wall Street analysts remain bullish
Palantir Technologies may have pulled back following its latest earnings report, but Wall Street analysts are still bullish on the stock’s prospects. The software company posted adjusted earnings of 44 cents per share versus the 41 cents expected by analysts polled by LSEG. Revenue came in at $2.31 billion, exceeding the $2.18 billion consensus. U.S. commercial revenue also more than doubled to $984 million, topping U.S. government revenue for the first time in the firm’s history. However, the company reported relatively soft total contract value per booking figures and non-U.S. commercial booking growth. Shares fell more than 7% in premarket trading on Tuesday. But the company’s stock should regain ground as Palantir continues to demonstrate that its growth is “more resilient than others,” according to William Blair analyst Louie DiPalma. “Tech investors have placed greater scrutiny on the results of companies across the AI ecosystem,” DiPalma said Tuesday in a note to clients. “The valuations for many AI supply chain providers have been cut in half on concerns that recent growth is unsustainable…In our view, Palantir’s growth should be more resilient than others because its revenue is recurring, with half coming from defense agencies. We expect that Palantir’s commercial and government revenue growth will remain elevated for the next several years.” William Blair has an outperform rating on the software stock. Its analyst also sees upside to $200 over the next year. Here’s what other shops on Wall Street are saying about Palantir. Deutsche Bank: Buy, $240 “Palantir delivered another very strong quarter, with growth accelerating across both Commercial and Government despite the increasingly significant scale of each business…This combination of growth and profitability drove Palantir’s Rule of 40 score to 158, marking its 13th consecutive increase. In our view, results continue to underscore Palantir’s differentiated position in enterprise software, supported by a distinctive combination of product excellence and artistry.” Bank of America: Buy, $255 “We see Palantir as a beneficiary of rapidly growing demand for Artificial Intelligence (AI)-platforms in both commercial and government end-markets. Palantir’s dominant position in the AI-powered software market, differentiated ontology-powered & highly secure solutions and offerings for Sovereign AI applications support strong profitable growth in the midterm. Increased urgency on modernizing military and intel capabilities may provide significant opportunities for Palantir.” UBS: Buy, $250 “Palantir posted another impressive growth result, with total revs growth accelerating 3-points to 96%, 3Q26 sequential revs growth of $378m a record and with a “normal” 6% beat, the 4Q26 guide implies 100% revs growth, another acceleration. The only real flaw in the print was the sequentially flat [remaining performance obligations]/backlog (first time since 1Q23), which Palantir pinned mostly on shorter contract durations.” JPMorgan: Overweight, $262 “Beat and raise results with $2bn of revenue for the quarter, growth accelerating to 96% [year over year] and 62% operating margins. Palantir has positioned itself as a best-of-breed AI-driven platform built to fundamentally transform the way Commercial and Government organizations operate with elegant integration of AI…and workflow. Demand for the company’s AI-driven transformation platform (and Sovereign AI) is accelerating and we are in the ‘early innings’ of Sovereign AI adoption. Government revenue growth accelerated to 81% y/y while Commercial revenue accelerated to 113% [year over year], and accounted for over 50% of PLTR’s business for the first time.” Morgan Stanley: Equal-weight, $233 Analyst Sanjit Singh raised his price target on shares to $233 from $205. The new target is nearly 31% above the level at which Palantir last closed. “Impressive as it was to see [revenue] growth accelerate for the 13th qtr in a row, PLTR is entering a new phase of growth powered by the sovereign AI / open-weight model movement. We see the company as a primary beneficiary.” Citi: Buy, $250 “Q3 was another superb revenue quarter as PLTR decisively beat expectations on both top and bottom lines… If nitpicking, we’d argue bookings metrics with [total contract value] +6% [year over year] and Commercial [remaining deal value] +79% [year over year] were less strong. That said, these faced tough compares and we’re inclined to look at a 2-year stack view which indicates sustained 100%+ growth and note some enterprise seasonality. Furthermore, calculated billings were robust at ~100% [year over year], while the high-end of Q4 guidance assumes an 89% growth rate, 6 [points] faster than the Q3 high-end guide, suggesting additional acceleration ahead once again in Q4 despite continued tough compares. We look for additional commentary on bookings and enterprise/government mix into Q4.”
