Palantir Technologies (NASDAQ: PLTR) has experienced a stock surge, increasing close to 5.5 times over the past year and up 13% in the last month, trading around $140 per share with a market cap of approximately $330 billion as of Monday. A significant factor contributing to this rise is the company’s growth in U.S. commercial revenue, which rose nearly 70% year-over-year in the last quarter, alongside winning contracts due to rising geopolitical tensions. However, Wall Street remains cautious, with the average analyst price target at $107, roughly 23% below current trading levels.
Palantir reported Q1 2025 revenue of $883.9 million, a 36% year-over-year increase, and raised its full-year revenue guidance to between $3.89 and $3.90 billion. The company’s balance sheet is strong, with $5.2 billion in cash and little to no debt, while its net income over the past four quarters reached $462 million, representing a margin of 16.1%. The U.S. Department of Defense awarded Palantir a $795 million contract for the Maven Smart System, enhancing its defense sector presence.
Despite these gains, Palantir faces valuation challenges, trading at nearly 190 times consensus 2026 earnings and approximately 66 times revenues, compared to lower valuation multiples for peers like Snowflake and CrowdStrike. The reliance on government contracts also poses risks, as changes in political power or budget priorities could adversely affect revenue stability.
