Palantir Technologies Surges While Analysts Remain Cautious

Denver, Colorado-based Palantir Technologies Inc. (PLTR) designs and implements software platforms targeted toward the intelligence community, aiding in counterterrorism efforts. The company specializes in software solutions that identify hidden patterns and allow deployment in various environments. Currently, Palantir boasts a market capitalization of $277.8 billion, with operations extending across North America, the U.K., and other international markets.

Recent Stock Performance

Palantir’s stock performance has markedly outpaced the broader market over the last year. PLTR has risen 53.6% year-to-date (YTD) and climbed 425.3% over the past 52 weeks. In comparison, the S&P 500 Index ($SPX) has experienced a 4.7% decline in 2025 and 11.7% gains over the last year.

When focusing on specific comparisons, Palantir has outperformed the SPDR S&P Software & Services ETF (XSW), which saw a 12.9% decline YTD and 13% returns over the past year.

Strong Q4 Results Boost Investor Confidence

Palantir’s stock saw a nearly 24% increase following the release of its impressive Q4 results on February 3. The company, operating as the sole deep-tech firm of its kind, reported a 52% year-over-year and 12% quarter-over-quarter growth in U.S. revenues, reaching $558 million. Overall, its total revenues surged 36% year-on-year to $827.5 million, surpassing consensus estimates by 6.4%. Additionally, its adjusted net income for common shareholders skyrocketed 80.3% from the previous year, totaling approximately $342 million, thereby boosting investor confidence.

Analysts’ Expectations for Fiscal Year 2025

For the current fiscal year 2025, ending in December, analysts predict PLTR will achieve a remarkable 300% year-on-year growth in adjusted earnings, estimating a figure of $0.32 per share. However, Palantir has exhibited a mixed history regarding earnings surprises. Over the past four quarters, the company missed bottom-line estimates twice but managed to meet or exceed projections on two occasions.

Caution from Analysts

Despite strong performance, analysts express caution regarding the Stock’s outlook. It holds a consensus “Hold” rating overall. Among the 20 analysts covering the stock, opinions vary: three recommend “Strong Buys,” 12 suggest “Holds,” one opts for “Moderate Sell,” and four advocate for “Strong Sells.”

This assessment is slightly improved compared to three months ago, when only two analysts recommended “Strong Buy,” while two suggested “Moderate Sell,” and five indicated “Strong Sell” ratings.

On April 16, Morgan Stanley (MS) analyst Sanjit Singh maintained an “Equal-Weight” rating on Palantir, reducing the price target to $90.

As of the current reporting date, the Stock trades above its mean price target of $84, while the street-high target of $125 implies a potential upside of 7.6% from existing price levels.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.