Palantir Stock Gets New Boost

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•  12 Jan 2026
 

•   PLTR  
   
  +0.89%

Palantir is once again at the center of the attention, as optimism around the stock continues to build into early 2026. After already receiving a highly bullish call from Oppenheimer earlier today, Citi has now upgraded Palantir to a Buy rating and raised its price target to $235, up from $210. This implies a premium of roughly 33% from current levels and reinforces the view that institutional sentiment toward the company is shifting.

What makes this move notable is Palantir history in the market. For years, the stock was driven mainly by retail investors, while large institutions often acknowledged the quality of the business but stayed cautious on valuation. That dynamic appears to be changing. Alongside Citi, firms such as Bank of America and Wedbush have also turned more constructive, suggesting that skepticism around Palantir’s price may be giving way to confidence in its growth trajectory.

$PLTR Palantir Technologies has already delivered an exceptional run, gaining about 135% in 2025, far outpacing the roughly 16% rise in the S&P 500. According to analysts, this momentum is not expected to fade quickly. Forecasts point to revenue growth of 70% - 80% continuing into 2026, supported by high margins and accelerating demand for the software in both defense and commercial markets.

At the core of the bullish thesis is Palantir expanding role in artificial intelligence and data-driven decision-making. The platforms, including Gotham for government and intelligence use and Foundry for commercial clients, are increasingly complemented by its newer AIP platform. AIP integrates autonomous AI agents, allowing organizations to analyze massive volumes of data in real time and translate insights directly into action.

This capability is already being applied at scale. In the US military, Palantir is supporting supply chain management for nuclear submarines under a $448 million contract, helping reduce maintenance times and improve operational efficiency. In the UK, a five-year, £750 million agreement with the Ministry of Defence expands Palantir AI use in intelligence and cyber operations. These contracts underline how rising global security tensions are translating directly into demand for Palantir technology.

The commercial side is also gaining momentum. Palantir has signed major deals with companies such as Lumen, in a $200 million agreement focused on AI-powered telecommunications services, and Boeing, where Palantir AI tools are being integrated into defense and aerospace manufacturing. In the third quarter of 2025, the company reported revenue of $1.18 billion, up 63% year over year, while net income more than doubled.

Looking ahead, consensus expectations for 2026 call for revenue of about $4.44 billion and earnings per share of $0.57. While this EPS forecast is more conservative than Oppenheimer near-$1 estimate, analysts still see strong operating leverage as AI adoption accelerates. Ongoing geopolitical conflicts in regions such as Ukraine, the Middle East, and Venezuela are also seen as tailwinds, as Palantir software has already been used to support military and intelligence operations in complex environments.

Still, not everyone is convinced. Palantir valuation remains elevated, and the high earnings multiple continues to attract critics. Investors such as Michael Burry have reportedly opened short positions, arguing that the stock price has moved ahead of sustainable, long-term growth. Even among long-term believers, there is recognition that expectations are now high and volatility could increase if execution slips.

The divide between bulls and bears is what makes Palantir such a compelling stock to watch right now. On one side are analysts pointing to accelerating growth, expanding margins, and structural demand for AI-driven defense and enterprise software. On the other are investors warning that much of this optimism may already be priced in.

The key question is not whether Palantir is a strong company, but whether its growth can continue to justify its valuation through 2026 and beyond. With multiple bullish price targets now on the table and debate intensifying, a deeper look into Palantir fundamentals and risk profile may be the next step before deciding how to position in $PLTR.

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