Palantir reported 62.8% year-over-year revenue growth to $1.18 billion in its most recent quarter, driven by a 121% surge in U.S. commercial sales to $397 million. The company’s Artificial Intelligence Platform (AIP) rollout in mid-2023 has accelerated adoption across banking, healthcare and defense sectors. Gross margin improved to 80.8%, while adjusted operating margin expanded by 400 basis points to 12.5%. Free cash flow turned positive for the first time in fiscal Q3, reaching $85 million, up from negative $20 million a year earlier.

Palantir trades at roughly 110 times trailing revenue and over 160 times forward earnings, levels exceeded by only one other S&P 500 company. Such extreme multiples leave little room for error if growth decelerates from the current consensus forecast of 54% revenue growth this year to 43% in 2026. Nearly 60% of Palantir’s revenue still derives from government contracts, exposing the company to potential budget cuts or shifts in policy. Political scrutiny surrounding defense-related work and founder affiliations adds an extra layer of execution risk.

First Citizens Bank & Trust increased its stake by 8.5% to 87,483 shares, valued at $15.96 million, in the last quarter. Other firms such as Bison Wealth and TD Private Client Wealth boosted positions by 37.4% and 39.7%, respectively. Overall, institutions hold 45.7% of shares. Insiders have trimmed stakes significantly, selling over 1 million shares for proceeds of $167 million in the past 90 days, reducing aggregate insider ownership to 9.2%.

Of 26 analysts covering Palantir, 5 rate it a buy, 16 recommend hold and 2 advise selling, resulting in a consensus hold rating. The average 12-month price target stands at $190, implying roughly 14% upside from current levels. Major banks including Bank of America, Morgan Stanley and Citigroup each assign targets at or above $200, while more conservative firms maintain targets near $170, reflecting caution on valuation.