After Strong Q4 Earnings, Is Palantir Stock Headed to $255 in 2026?

Core Insights - Palantir's fourth-quarter earnings report indicates a potential turning point for the stock, with stronger-than-expected financial results and an optimistic outlook boosting investor confidence, leading to an 11.5% surge in pre-market trading [1] Financial Performance - The company experienced a significant acceleration in revenue growth, posting the largest quarterly revenue increase since going public, driven by strong demand across its business [2] - In the fourth quarter, Palantir's overall revenue surged 70% year-over-year (YoY), with the U.S. operations accounting for 77% of total revenue, which expanded 93% YoY and 22% sequentially, surpassing $1 billion in quarterly U.S. revenue for the first time [7] Profitability - Palantir demonstrated strong profitability alongside rapid expansion, indicating that improving margins are keeping pace with revenue growth [2] Growth Catalysts - The heightened demand for Palantir's Artificial Intelligence Platform (AIP) is a key growth catalyst, driving existing customer expansions and aiding in the acquisition of new customers, positioning the company for solid growth in 2026 [3][6] - The U.S. commercial business grew impressively by 137% YoY in the fourth quarter, with sequential growth of 28%, while the U.S. government business posted 66% YoY growth and a 17% sequential increase [8] Market Outlook - A Wall Street analyst projects that PLTR stock could reach $255 by 2026, representing an upside potential of about 73% from its recent closing price of $147.76 [4]