This AI Defense Stock Is One That Wall Street Can't Stop Buying

Core Insights - Palantir Technologies Inc. (PLTR) is distinguished in the enterprise data and AI analytics sector due to its scalable AI-driven platform, strong revenue growth, and reliable cash flows, making it an attractive investment opportunity [2][6]. Revenue Growth - Palantir's fourth-quarter 2025 revenues from U.S. commercial clients reached $507 million, reflecting a 137% year-over-year increase and a 28% quarter-over-quarter rise [3]. - The government segment also saw significant growth, with revenues increasing 66% year-over-year and 17% sequentially to $570 million [3]. Future Projections - The company forecasts full-year 2026 revenues between $7.182 billion and $7.198 billion, more than doubling the $3.320 billion reported in 2025 [4]. - The remaining deal value for U.S. commercial clients reached $4.38 billion in Q4 2025, up 145% year-over-year and 21% sequentially, indicating strong growth momentum [4]. Profitability and Business Model - Palantir anticipates consistent improvement in GAAP operating income and net income throughout 2026, supported by a Rule of 40 score of 127%, significantly above the 40% benchmark [5]. - The company possesses a strong competitive advantage with its flagship platforms, Gotham and Foundry, which face minimal competition, ensuring predictable cash flows [5]. Market Sentiment - Analysts are optimistic about Palantir's growth, with an average short-term price target of $201.38, representing a 40.9% increase from the last closing price of $142.91, and the highest target suggesting an 81.9% upside [9]. - The Zacks Consensus Estimate for Palantir's earnings per share (EPS) is $1.34, indicating a 100% year-over-year growth, and the company holds a Zacks Rank 2 (Buy) [11].