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This AI Defense Stock Is One That Wall Street Can't Stop Buying
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Key Takeaways
Palantir's AIP fuels rapid U.S. commercial and government revenue growth, supporting scale and profitability.
Strong AIP demand lifted U.S. commercial Q4 revenues 137% year over year, with government sales also rising.
Palantir expects 2026 revenues to more than double from 2025 as AIP adoption and deal values accelerate.
In the enterprise data and AI analytics space, Palantir Technologies Inc. (PLTR - Free Report) stands out from peers, such as Snowflake Inc. (SNOW - Free Report) and C3.ai, Inc. (AI - Free Report) , because of its highly scalable, artificial intelligence (AI - Free Report) -driven platform, robust revenues and profit margins, and reliable cash flows. This positions the AI-focused defense stock as a compelling buy. Let’s see in detail –
Palantir’s AIP Drives Explosive Growth and Profit Momentum
Palantir’s Artificial Intelligence Platform (“AIP”) enables organizations to seamlessly integrate and deploy AI and large language models across highly complex data infrastructures. Consequently, AIP has gained immense popularity among both U.S. commercial clients and the government.
Strong demand for AIP helped Palantir’s fourth-quarter 2025 revenues of the U.S. commercial client segment to hit $507 million, up 137% year over year and 28% quarter over quarter, according to investors.palantir.com. In the same period, revenues for the government segment soared 66% year over year and 17% sequentially to $570 million.
The growing adoption of AIP has led Palantir to forecast full-year 2026 revenues of $7.182-$7.198 billion, more than double the $3.320 billion reported in 2025. Growth momentum also appears sustainable, as the remaining deal value of U.S. commercial reached $4.38 billion in the fourth quarter of 2025, up 145% year over year and 21% sequentially.
Palantir projects steady improvement in its GAAP operating income and net income across every quarter of 2026. With a Rule of 40 score of 127%, well above the 40% benchmark, the company demonstrates a highly scalable business model that supports its growth outlook. Palantir also has a strong competitive moat. Its two flagship platforms, Gotham and Foundry, don’t face meaningful competition, which underpins predictable cash flows over the long run.
Palantir Stock to Buy Hand Over Fist
While unprofitable projects, reduced AI investments, or potential defense budget cuts could weigh on Palantir’s growth trajectory, such risks appear distant. Led by Alex C. Karp, Palantir is well-positioned to gain from the growing adoption of AIP, its scalable business model, and its strong competitive advantage.
Palantir’s net profit margin of 36.3%, more than the Internet - Software industry's 26.3%, further indicates significant growth potential.
Image Source: Zacks Investment Research
Brokers are also bullish on Palantir’s growth prospects. They estimate an average short-term price target for PLTR stock at $201.38, a 40.9% increase from the last closing price of $142.91. The highest target is $260, suggesting a potential upside of 81.9%.
Image Source: Zacks Investment Research
As a result, Palantir has become a Wall Street favorite. Its Zacks Consensus Estimate for earnings per share (EPS) of $1.34 implies 100% year-over-year growth. Currently, Palantir holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
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This AI Defense Stock Is One That Wall Street Can't Stop Buying
Key Takeaways
In the enterprise data and AI analytics space, Palantir Technologies Inc. (PLTR - Free Report) stands out from peers, such as Snowflake Inc. (SNOW - Free Report) and C3.ai, Inc. (AI - Free Report) , because of its highly scalable, artificial intelligence (AI - Free Report) -driven platform, robust revenues and profit margins, and reliable cash flows. This positions the AI-focused defense stock as a compelling buy. Let’s see in detail –
Palantir’s AIP Drives Explosive Growth and Profit Momentum
Palantir’s Artificial Intelligence Platform (“AIP”) enables organizations to seamlessly integrate and deploy AI and large language models across highly complex data infrastructures. Consequently, AIP has gained immense popularity among both U.S. commercial clients and the government.
Strong demand for AIP helped Palantir’s fourth-quarter 2025 revenues of the U.S. commercial client segment to hit $507 million, up 137% year over year and 28% quarter over quarter, according to investors.palantir.com. In the same period, revenues for the government segment soared 66% year over year and 17% sequentially to $570 million.
The growing adoption of AIP has led Palantir to forecast full-year 2026 revenues of $7.182-$7.198 billion, more than double the $3.320 billion reported in 2025. Growth momentum also appears sustainable, as the remaining deal value of U.S. commercial reached $4.38 billion in the fourth quarter of 2025, up 145% year over year and 21% sequentially.
Palantir projects steady improvement in its GAAP operating income and net income across every quarter of 2026. With a Rule of 40 score of 127%, well above the 40% benchmark, the company demonstrates a highly scalable business model that supports its growth outlook. Palantir also has a strong competitive moat. Its two flagship platforms, Gotham and Foundry, don’t face meaningful competition, which underpins predictable cash flows over the long run.
Palantir Stock to Buy Hand Over Fist
While unprofitable projects, reduced AI investments, or potential defense budget cuts could weigh on Palantir’s growth trajectory, such risks appear distant. Led by Alex C. Karp, Palantir is well-positioned to gain from the growing adoption of AIP, its scalable business model, and its strong competitive advantage.
Palantir’s net profit margin of 36.3%, more than the Internet - Software industry's 26.3%, further indicates significant growth potential.
Image Source: Zacks Investment Research
Brokers are also bullish on Palantir’s growth prospects. They estimate an average short-term price target for PLTR stock at $201.38, a 40.9% increase from the last closing price of $142.91. The highest target is $260, suggesting a potential upside of 81.9%.
Image Source: Zacks Investment Research
As a result, Palantir has become a Wall Street favorite. Its Zacks Consensus Estimate for earnings per share (EPS) of $1.34 implies 100% year-over-year growth. Currently, Palantir holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research