Palantir Technologies Inc (NYSE:PLTR)’s latest quarterly results have triggered enthusiastic responses from major Wall Street analysts, who highlighted the company’s accelerating growth and its leadership in enterprise AI deployment.
Bank of America analysts welcomed the report, writing that Palantir is “approaching its own ‘singularity’ moment this quarter.”
For the first time ever, quarterly revenue surpassed $1 billion, up 48% year-over-year. US commercial revenue grew 93% year-over-year, and margins of 46%, up 890 basis points year-over-year, all led to Palantir’s “Rule of 40” score being 94, they noted.
Bank of America repeated its ‘Buy’ rating and upped its price target on Palantir to $180 from $150, citing “mainly to reflect stronger growth and profitability.”
“We expect new customer growth will continue as Palantir remains the best in class for deploying and operationalizing AI into enterprises,” the analysts wrote.
“Even with the growth, we expect the scaling challenges to remain manageable with use-cases scaling exponentially, and tools like AI-FDE, AI Workbench, and Ontology-as-Code reducing the need for direct FDE involvement at customers.”
Wedbush echoed this bullish view, maintaining their ‘Outperform’ rating and raising their price target to $200 from $160.
They described the quarter as “another eye-popping quarter for the Messi of AI as AIP continues gaining unprecedented interest across the commercial landscape with US Commercial front and center seeing 93% year-over-year growth with more enterprises looking to Palantir for complex AI use cases.”
“We believe Palantir has a golden path to become the next Oracle over the coming years and will grow into its valuation,” the analysts wrote.
Wedbush sees the company’s execution as evidence that it is “capitalizing on demand for its product suite across government and commercial while investing strategically into its products while remaining committed to maintaining a strong Rule of 40 profile, which is expected to be 91% for fiscal year 2025.”
They said the momentum is building toward a much larger role in the AI economy. “In the next few years Palantir has the potential to be a trillion-dollar market cap as the AI Revolution takes hold,” they wrote.
Valuation concerns
UBS analysts took a more measured stance while acknowledging Palantir’s impressive growth trajectory.
“Valuation at 136x calendar year 2026 free cash flow remains our key hurdle and we remain ‘Neutral’ rated,” they wrote.
They noted that Palantir is benefiting from a “confluence of mega-trends in AI application development, investments at the data layer and the modernization of defense tech.”
“Both the commercial and the government segments were very strong, with no evidence of US Fed/DOGE-related pressure, evidence that Palantir is on the right side of DoD spending mix shifts,” they wrote.
They highlighted the company’s expectation that its US commercial segment, with 93% growth at a $1.2 billion revenue run-rate, is its “emerging core.”
“While it may not be formal guidance, the CEO said that he’d like to see this segment 10x over the next 5 years,” they wrote. “This would put the US Commercial segment at a $12 billion run-rate and implies a 58% five-year compound annual growth rate.”
Investors were also excited about Palantir’s report, sending its shares 7% higher to $172. The stock is up almost 130% in the year to date.