Citi upgrades Palantir with 80% sales growth forecast and $235 target
On January 12, Citi upgraded PLTR to Buy from Neutral, raising its 2026 price target from $210 to $235, implying a 31% upside. Analyst Tyler Radke forecasts up to 80% revenue growth in 2026, citing accelerating enterprise AI budgets and a defense spending supercycle fueling contract gains.
1. Palantir Sets Q4 2025 Earnings Release and Webcast
Palantir Technologies Inc. will report results for its fourth quarter and full year ended December 31, 2025 on February 2, 2026, after U.S. markets close. The company will host a live webcast at 3:00 PM MT / 5:00 PM ET, with replay available on its investor relations site. Shareholders can pre-register to submit and vote on questions via Palantir’s engagement platform, enabling direct interaction with management during the call.
2. Robust 2025 Revenue Growth Fueled by AI Platforms
In Q3 2025, Palantir’s U.S. Commercial segment delivered year-over-year growth of 121%, driven by strong adoption of its AIP Bootcamp and Ontology platforms. Overall revenue for the first nine months of 2025 increased more than 70% versus prior year, reflecting accelerated enterprise deployments of Foundry and Gotham. The company attributed much of this increase to enhanced AI capabilities that streamline data integration and decision-making workflows for both private and public sector clients.
3. Analyst Upgrades Highlight Significant 2026 Sales Upside
Citi Research upgraded Palantir to Buy from Neutral on January 12, citing potential for up to 80% sales growth in 2026. Analyst Tyler Radke pointed to accelerating AI budgets across major enterprises and a looming defense ‘supercycle’ fueled by elevated global security spending. Recent conversations with CIOs and industry leaders indicate new AI use cases are rapidly moving from pilot to production, supporting upward revisions to both revenue and earnings estimates for the coming year.
4. Defense and Government Contracts Propel Long-Term Momentum
Palantir continues to deepen its ties with government agencies worldwide, securing a new £1.5 billion partnership with the U.K. Ministry of Defence and expanding a multi-year, multibillion-dollar agreement with the U.S. Army. In late 2025, Palantir also won contracts for immigration lifecycle management and national security data integration. With government revenue historically outpacing commercial revenue and defense budgets on track for mid-single-digit annual increases, Palantir’s unique positioning as one of only five SaaS providers authorized for U.S. Mission Critical National Security Systems underpins its long-term growth trajectory.