Mizuho Cuts Palantir Target to $195 Despite 70% Q4 Growth; PFCS Forward Wins DISA Approval
Palantir reported 70% Q4 revenue growth and guided 61% FY26 growth, but Mizuho maintained a Neutral rating and cut its price target to $195, citing a 40x 2027 revenue valuation. It also secured DISA authorization for PFCS Forward, extending IL5/IL6 accreditation to on-premises and edge deployments.
1. Mizuho Lowers Price Target and Maintains Neutral Rating
Mizuho lowered its Palantir price target from $205 to $195 while retaining a Neutral rating, citing an “extreme” valuation at 40 times expected 2027 revenue. Analysts noted significant multiple compression following Q4 results and flagged potential for multiple reversion in coming quarters.
2. Robust Q4 Results and FY26 Outlook
Palantir reported 70% year-over-year Q4 revenue growth and guided to 61% revenue expansion for FY26 with a 56% free cash flow margin, driving a Rule of 40 score of 127%. This performance substantially outpaced street expectations and underscores the company’s strong execution in AI-driven analytics.
3. DISA Authorization Expands PFCS Forward Deployment
The Defense Information Systems Agency granted Palantir’s PFCS Forward service on-premises and edge IL5 and IL6 accreditations, enabling faster Authorization to Operate for government clients. This hardware-agnostic approval broadens Palantir’s addressable market across data centers, tactical environments, and cloud-edge architectures.