Analysts project that Palantir Technologies will report 62% year-over-year revenue growth and 64.1% non-GAAP earnings per share growth when it releases full fourth-quarter and full-year 2025 results on February 2. These estimates reflect accelerating demand for the company’s AI-driven analytics platforms across both commercial and government segments. Palantir’s government contracts, which account for roughly 40% of total revenue, have seen a 45% increase in active customers, while commercial spending per customer rose 34% in the latest quarter. If Palantir meets or exceeds these forecasts, it would mark its ninth consecutive quarter of accelerating top-line growth.

In the third quarter, Millennium Management’s portfolio reduced its Palantir position by selling 4.5 million shares, representing approximately 1.07% of Palantir’s total outstanding stock. This move came as part of a broader reallocation into Tesla, where Millennium acquired 311,000 shares. The sale of 4.5 million Palantir shares accounted for nearly $800 million of trading volume during the quarter. Despite this reduction, Palantir’s free float remains ample, and insiders continue to hold over 10% of shares, underscoring confidence in the business model.

Palantir currently trades at approximately 180 times forward earnings and 110 times trailing sales, making it one of the most richly valued stocks in the S&P 500. Only a quarter of analysts covering the stock rate it a buy, with the median 12-month price target implying just 11% upside from current levels. Bulls argue that ongoing AI adoption and future government defense spending will support sustained growth, while skeptics caution that few software companies have maintained valuations above 100 times sales over the long term. Investors face a high bar: Palantir must continue its beat-and-raise cadence for many quarters to justify its premium multiple.