Palantir Technologies Inc (NYSE:PLTR)’ latest earnings reinforced bullish views on the company’s growth trajectory and its role in enterprise AI, with analysts pointing to accelerating revenue growth, expanding margins and strong demand from both commercial customers and US government agencies.
UBS said Palantir delivered “its 10th straight quarter of revs growth acceleration,” calling the results “a turnaround that we’ve never seen before,” as revenue growth climbed from 13% in mid-2023 to 70% in the just-reported fourth quarter of 2025.
The firm highlighted the scale of the performance, noting the company achieved that growth on a $5.6 billion revenue base while generating 57% operating margins.
“The numbers are astounding,” UBS analysts wrote, citing 70% total revenue growth, 137% growth in US commercial revenue at a more than $2 billion scale, and 66% growth in US government revenue “despite all the cost-cutting pressures.” Analysts added that Palantir’s 2026 revenue growth guidance of 61% “implies that growth may accelerate further from the 70%+ level in 4Q25/1Q26,” assuming a normal beat.
UBS said it remained “very positive on the fundamentals,” adding that it was “challenging to even find a flaw in this print,” but kept a Neutral rating due to valuation, with the stock trading at about 94 times its revised 2026 free cash flow estimate. The bank trimmed its 12-month price target to $180 from $205, citing a lower peer group multiple following a broader software sector de-rating.
Bank of America struck a more bullish tone, reiterating a Buy rating and a $255 price objective. The firm described Palantir’s performance as a warning to slower-moving competitors, pointing to a Rule of 40 score of 106% for 2025 and an estimated 118% for 2026.
“We view PLTR’s 2025 rule of 40 score of 106% and 118% outlook for 2026 as a warning to peers, being an ‘AI company’ needs to come with real results,” BofA wrote. Analysts said Palantir’s intentional approach to go-to-market strategy and product development “continues to be met with exponential growth.”
BofA highlighted continued momentum in the U.S government segment, where revenue grew 66% year-on-year, and said new contracts such as ShipOS suggest this is “only the beginning.” Addressing competitive concerns in commercial software, the firm said, “Bears have argued peers are becoming smarter and encroaching — we see the gap growing.”
Wedbush also reaffirmed its bullish stance, maintaining an Outperform rating and a $230 price target, and called the quarter “yet another strong drop the mic quarter of beats across the board.”
Wedbush pointed to total revenue of $1.407 billion, up 70% year-on-year, and US commercial growth of 137%, well ahead of expectations. It also flagged expanding deal sizes and a growing pipeline, with 61 deals above $10 million in total contract value, as evidence that Palantir’s “land and expand” strategy is gaining traction.
Looking ahead, Wedbush said Palantir’s 2026 guidance was “strong across the board,” with revenue growth expected to remain above 60% and free cash flow guidance far exceeding Street estimates. “Palantir remains one of our top tech names to own in 2026,” the firm wrote, adding that the company is generating “unprecedented traction for its entire portfolio across the federal and commercial landscapes.”