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Shares of Palantir Technologies (PLTR) have been on a tear in 2025, with the stock climbing 72% year-to-date and an eye-popping 403% over the past 12 months. On Thursday, June 26, Palantir surged another 0.94% and hit $148.21, marking its highest level on record. This remarkable run comes as investors continue to pile into AI and data analytics names seen as long-term infrastructure plays for the intelligence community and defense sector.
While the broader tech-heavy Nasdaq Composite Index ($NASX) has rebounded strongly this year, Palantir’s performance dwarfs the index and highlights the market’s hunger for mission-critical software vendors with geopolitical tailwinds. However, with stretched valuation multiples and a forward price-earnings ratio approaching 400x, the question now is whether Palantir’s fundamentals can keep up with its soaring share price.
About Palantir Technologies Stock
Founded in 2003 in Denver, Colorado, Palantir Technologies (PLTR) creates data integration and analytics software platforms adopted by governments, defense agencies, and commercial entities across the world. Its Gotham and Foundry platforms are used widely in the intelligence community, placing the company at the heart of national security and AI-based data infrastructures. The company is currently valued at a massive $321.7 billion.
Palantir stock has been nothing short of explosive over the past year. Shares have traded within a 52-week range of $21.23 to $148.21 and now sit near the top of that band. Year-to-date, the stock is up 72.8%, vastly outpacing the broader Nasdaq Composite Index, which has gained about 4.7% in the same period.
But the valuation of Palantir itself remains the sticking point for investors. Its trailing price-earnings multiple is 1,089x, and the forward multiple is still in the range of 350x, both materially higher than the tech median. Its price-sales is 107.7x, and price-cash flow ratio is in excess of 1,400x. Though the company benefits from a 16.1% profit margins and zero leverage, such stretched multiples necessitate that humongous growth assumptions are met to continue to support the stock here.
Palantir Beats on Earnings
Palantir’s first-quarter 2025 results exceeded expectations and reinforced the company’s bullish long-term outlook. For Q1, total revenue rose 39% year-over-year to $884 million, with U.S. revenue alone jumping 55% to $628 million. U.S. commercial revenue was a standout, surging 71% year-over-year and now topping a $1 billion annual run rate, clear evidence of Palantir’s accelerating adoption as more companies turn to its platforms to power AI-driven operations.
The company closed 139 deals worth at least $1 million in the quarter, including 51 deals over $5 million and 31 above $10 million. Notably, Palantir booked its highest ever quarter of U.S. commercial total contract value at $810 million, up 183% from a year ago. Its remaining deal value for U.S. commercial business rose 127% year-over-year to $2.32 billion, highlighting a robust pipeline for the months ahead.
Looking ahead, management raised its full-year revenue growth guidance to 36% and expects U.S. commercial revenue to expand by at least 68% in 2025, reinforcing confidence that demand for its AI-native platforms will remain strong.
What Do Analysts Expect for Palantir Stock?
Despite the market-beating rally, the Street is divided in its outlook for the future of Palantir with a “Hold” consensus rating. Further, the company’s range of analyst price targets is wide. The high end is $155 while the low end dips to $40. The $104.94 median price target represents some 20% downside from its current trading price.
