10:29 pm - February 4, 2026
Palantir Technologies experienced a significant stock surge following the announcement of its best quarterly results ever, signaling a strong comeback for the AI software company. Shares of Palantir jumped as much as 12% on Tuesday after the company reported record revenue of $1.4 billion for the quarter, representing a 70% increase compared to the same period last year. The company also provided robust guidance for 2026, projecting revenue of $7.18 billion, well above analyst expectations of $6.2 billion.
According to CEO Alex Karp, speaking to CNBC on Monday, the firm’s financial performance marked “the best results” he was aware of in the tech sector over the last 10 years. The earnings report represents Palantir’s 10th consecutive quarter of accelerating revenue growth, according to Morgan Stanley analysts.
Palantir Stock Rebounds After Difficult Period
The positive earnings news comes after a challenging few months for Palantir investors. The stock had been declining since late 2025, facing pressure from short sellers and institutional investors amid concerns about inflated tech valuations across the sector. While Palantir shares remain up nearly 100% over the past year, they had fallen 28% from their peak in early November through Monday, before the earnings announcement.
However, the latest results appear to have restored investor confidence in the company’s growth trajectory. The strong performance demonstrates Palantir’s ability to capitalize on increasing demand for artificial intelligence solutions among enterprise clients.
Wall Street Analysts Upgrade Palantir Outlook
Morgan Stanley responded to the earnings by lifting its revenue forecast for the next two years and maintaining its price target of $205, implying approximately 30% upside from current levels. The bank’s analysts noted that Palantir “is on course to reach $10B in revenue at the fastest growth rate and highest margins perhaps in sw history, underscoring its status as a clear AI winner.”
Additionally, Bank of America reiterated its “buy” rating and $255 price target on Palantir stock. The bank’s analysts suggested that the company’s exceptional results could serve as a warning to other firms in the AI space that artificial intelligence initiatives “need to come with real results.” They added that “while the market’s relationship with AI companies continues to be volatile, we see these results cementing PLTR’s place as one which will survive and thrive in the chaos.”
Meanwhile, Truist analysts called Palantir a “Conclusive AI Pure-Play Victor” in their post-earnings note. The firm maintained its “buy” rating and $223 price target, citing strong growth in the company’s backlog as evidence of confidence in its long-term trajectory. According to Truist, the momentum demonstrates that “PLTR is enabling AI adoption at scale for its customers, leading to discernible results.”
Dissenting Views on Valuation Concerns
In contrast, not all analysts share the bullish outlook for Palantir stock. Wedbush Securities analyst Dan Ives praised the company’s fourth-quarter results, calling Palantir the “Messi of AI” and maintaining an “outperform” rating with a $230 price target. He emphasized that “Palantir is helping lead the AI Revolution into the use case phase as its AIP product moat is unmatched in our view.”
However, analysts at Jefferies expressed caution regarding the company’s valuation metrics. They maintained their “underperform” rating and $70 price target, suggesting potential downside of 56% from current levels. According to Jefferies, “we view execution as strong, though at 39x CY27E rev, multiple downside outweighs fundamental upside, with more attractive stocks in our coverage.”
Investors will likely monitor Palantir’s ability to maintain its accelerating revenue growth and deliver on its ambitious 2026 guidance in the coming quarters. The company’s performance will also be closely watched as a bellwether for broader AI software adoption trends across enterprise markets.
