Palantir Technologies (PLTR) has been a lot in the news lately, especially after its involvement with the U.S. military and intelligence agencies during the war with Iran. And now a reported partnership between the Internal Revenue Service (IRS) and Palantir is raising eyebrows, and potentially raising the stakes for PLTR stock. According to The Intercept, the IRS has been leveraging Palantir’s Lead and Case analytics platform since 2018 to sift through vast pools of financial and personal data in pursuit of financial crimes.
The system reportedly connects millions of records across federal databases, spanning tax returns, bank transactions, healthcare data, and even activity tied to cryptocurrencies like Bitcoin, Ethereum, and Ripple. While the scale of this data integration highlights Palantir’s growing role in government operations and a contract worth over $130 million, it also opens the door to serious concerns.
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Non-profit watchdog group American Oversight warns that consolidating such sensitive data into a single, opaque system could blur the lines between security and surveillance. As questions around privacy and accountability grow louder, is this a game-changing opportunity for Palantir, or a controversy that could cloud its long-term outlook?
About Palantir Stock
In the artificial intelligence (AI)-driven market narrative, few names have stayed as consistently in focus as Palantir Technologies. Founded in 2003 to tackle the challenge of interpreting massive, complex datasets, the Denver-based company has evolved into a major force in advanced analytics, powered by platforms like Gotham, Foundry, and its latest Artificial Intelligence Platform (AIP), introduced in early 2023.
These systems allow both governments and enterprises to turn raw data into actionable intelligence, faster and at scale. The company’s early momentum came from its close alignment with intelligence agencies and the U.S. military, where its technology became central to counterterrorism and national security efforts. Over the years, Palantir broadened its reach into the commercial sector, supporting industries such as healthcare, manufacturing, energy, and finance in extracting deeper insights and improving decision-making.
But the tone around the stock has shifted in 2026. After riding high on AI optimism, Palantir is now trading 31% below its November 2025 peak of $207.52, reflecting a wider cooldown across tech and software names. The shift is being driven by a rapid innovation cycle, such as new Claude plugin launches from AI startup Anthropic, along with growing unease about a potential AI bubble and mounting concerns over stretched valuations.
Even so, the company’s core story remains intact. Palantir continues to hold a leadership position in AI software and is increasingly becoming a preferred platform for deploying agentic AI solutions. At the same time, it has once again found itself in the headlines due to its involvement with U.S. military and intelligence activities amid the U.S.-Iran war.
The attention intensified further following endorsement from President Donald Trump earlier this month, who highlighted the company’s war fighting capabilities. Yet despite that high-profile endorsement, Palantir hasn’t kept pace with the broader market this year. Currently valued at a market capitalization of about $342.22 billion, shares of this analytics platform are still down 19.16% so far in 2026, heavily underperforming the S&P 500 Index ($SPX) which has gained 4.82% over the same period.
www.barchart.com Even after its pullback, Palantir still carries a premium price tag that’s hard to ignore. The stock trades at a steep 134.7 times forward price-to-earnings and 47.19 times forward sales, towering over sector medians of just 24.06 times and 3.16 times, respectively. This highlights that while the hype may have cooled, expectations around its AI-driven growth story remain sky-high.
Palantir Closes Fiscal 2025 with Record-Breaking Momentum
Palantir closed out fiscal 2025 on a high note, delivering a fourth-quarter performance in early February that underscored the strength of its AI-driven business. The company posted record quarterly revenue of about $1.41 billion, its best result in more than two decades, marking a 70% jump from the prior year and comfortably beating Wall Street’s $1.34 billion estimate.
The U.S. remained the backbone of this growth story, accounting for roughly 77% of total revenue. Within that, the commercial segment emerged as the standout performer, with revenue soaring 137% year-over-year (YOY) to $507 million, driven by accelerating enterprise adoption of its Artificial Intelligence Platform (AIP). At the same time, government operations continued to deliver steady gains, with U.S. government revenue climbing 66% to $570 million.
Demand trends were equally impressive on the deal front. Palantir closed 180 contracts worth at least $1 million during the quarter, including 84 deals above $5 million and 61 exceeding $10 million, clear evidence of rising large-scale adoption. This momentum pushed total contract value (TCV) to a record $4.262 billion, up 138% YOY, while U.S. commercial TCV alone reached $1.344 billion, reflecting a 67% increase.
In addition, profitability saw a dramatic step-up. The company reported GAAP net income of $609 million, translating to a 43% margin and a staggering 670% YOY increase. Adjusted earnings per share came in at $0.25, topping expectations of $0.23. Meanwhile, Palantir’s balance sheet remained robust, ending the year with $7.2 billion in cash and short-term investments, providing significant firepower for continued innovation and expansion in sovereign AI initiatives.
Looking ahead, management struck a confident tone. For fiscal 2026, Palantir expects revenue between $7.182 billion and $7.198 billion, implying roughly 61% growth. Even more striking, U.S. commercial revenue is projected to exceed $3.144 billion, pointing to at least 115% growth, as enterprise demand for its AI capabilities continues to accelerate.
Palantir is now set to take center stage again, with its fiscal 2026 first-quarter earnings scheduled for Monday, May 4, after the U.S. market close. And ahead of this event, expectations are running high, as analysts forecast Palantir to deliver a massive 450% YOY jump in GAAP earnings to $0.22 per share.
What Are Analysts Thinking About Palantir Stock?
Overall, Wall Street’s conviction in Palantir remains hard to ignore. The stock carries a consensus “Moderate Buy” rating backed by a strong tilt of bullish calls. Of 27 analysts, 16 rate it a “Strong Buy,” nine stay neutral with “Hold,” one gives “Moderate Sell,” and the remaining one flags a “Strong Sell.”
The upside narrative is just as compelling. The average price target of $197.87 implies about 38.16% upside, while the most optimistic Street forecast of $260 suggests the stock could rally as much as 81.5% from here.
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www.barchart.com On the date of publication, Anushka Mukherji did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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