In January, Citigroup upgraded PLTR to a Buy rating and raised its target by more than 10%, citing rapid adoption of the company’s AI software across government and commercial sectors. Over the past 90 days, consensus 2026 earnings forecasts for PLTR have climbed by nearly 20%, while average price targets have increased by over 20%, reflecting bullish views from firms including Morgan Stanley, Bank of America and Wedbush.

During the third quarter of 2025, Palantir reported overall revenue growth of 63% year-over-year, driven by a 121% increase in commercial sales and a 52% rise in U.S. government revenue. The company now serves 911 clients, up 45% from a year earlier, and closed 204 contracts worth at least $1 million, including 53 deals exceeding $10 million. Total contract value for its commercial division jumped more than 300% to $1.3 billion.

Palantir’s GAAP operating margin reached 33% in Q3 2025, and net income per share tripled compared to the same quarter last year. Its Rule of 40 score—a measure combining revenue growth and profitability—stood at an industry-leading 114%, underscoring the company’s ability to scale rapidly while maintaining healthy margins. The balance sheet remains robust, with over $6 billion in cash and no debt.

Despite trading at more than 100 times trailing sales—making it one of the highest-valued software companies—many analysts argue that Palantir’s unique position at the intersection of defense, intelligence and AI-driven commercial applications warrants a premium. With structural demand for data-driven decision tools set to accelerate and management forecasting further expansion of large-ticket deals, growth-oriented investors view the current valuation as a reasonable entry point for a long-term position.