Wall Street analysts update Palantir's stock price after blowout Q4 earnings

Core Viewpoint - Wall Street analysts have become optimistic about Palantir Technologies following the company's strong earnings report for Q4 2025, driven by increased adoption of its AI software among commercial clients and U.S. government agencies [1]. Financial Performance - Palantir reported adjusted earnings of $0.25 per share, surpassing estimates of $0.23, with revenue reaching $1.41 billion, exceeding forecasts of $1.33 billion. This represents a 70% increase from $827.5 million a year prior, bringing full-year 2025 sales to $4.48 billion [2]. - Revenue from U.S. government clients rose to $570 million, while U.S. commercial revenue increased to $507 million, both exceeding expectations [2]. Future Projections - For Q1 2026, Palantir projects revenue between $1.532 billion and $1.536 billion. For the full fiscal year 2026, the forecast is $7.182 billion to $7.198 billion, significantly above consensus estimates, indicating strong ongoing demand for AI solutions [3]. Stock Performance and Analyst Ratings - Following the earnings report, Palantir shares rose approximately 5% in after-hours trading and gained over 10% to $163 in pre-market trading, up from $147 at the end of the last session [3]. - William Blair's Louie DiPalma maintained an "Outperform" rating, citing increased confidence in U.S. government agencies adopting Palantir's platforms for critical analytics [5]. - Citi analyst Tyler Radke upgraded Palantir to "Buy" from "Neutral," projecting revenue growth of 70% to 80% for the year and raising the price target to $235 from $210, indicating a more bullish outlook compared to the consensus of $189 [6]. Analyst Consensus - Overall, Wall Street analysts have a consensus "Moderate Buy" rating on Palantir, with 17 ratings showing seven buy recommendations, eight hold advisories, and two sell suggestions [8]. - The average 12-month price target is $189.27, suggesting about 28% upside from the last price of $147.76, although projections vary widely, with the most optimistic target at $235 and the lowest at $50 [10].