Palantir Gains 4% After Mizuho Upgrade and Rackspace AI Partnership
Palantir stock climbed about 4% after Mizuho upgraded it to Outperform from Neutral with a $195 target, citing Q4 2025 U.S. commercial and government revenue gains and expanding AI margins. It signed a partnership with Rackspace to accelerate AI deployments through data migration into private and UK sovereign cloud centers.
1. Analyst Upgrade by Mizuho
Mizuho raised Palantir’s rating to Outperform from Neutral and set a $195 price target, noting the stock’s roughly 25% year-to-date pullback had improved its risk-reward profile. The firm highlighted accelerating revenue growth and expanding AI margins as key drivers for the upgrade.
2. Q4 2025 Results and Revenue Growth
Palantir’s Q4 2025 results surpassed both internal guidance and analyst forecasts, propelled by gains in U.S. commercial and government segments and strong adoption of its AI Platform. These factors combined to deliver margin expansion and reinforce the company’s unique scale in the software sector.
3. Strategic AI Partnership with Rackspace
Palantir appointed Rackspace as its global data migration and implementation partner to speed enterprise AI rollouts. The agreement covers deployment of Foundry and the AI Platform in Rackspace’s private cloud and UK sovereign data centers, addressing security, compliance and data sovereignty requirements for regulated industries.