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Tensions flared across the Middle East in June 2025 as Israel launched a series of strikes on Iranian nuclear and military sites, igniting fears of a broader regional war. Oil (CLN25) prices spiked, global markets quivered, and defense stocks roared to life as uncertainty rippled through investor sentiment. The specter of all-out conflict looms, with geopolitical fault lines growing sharper by the day.
Amid this chaos, Palantir Technologies (PLTR) has emerged as a unique investment opportunity. Known for advanced data analytics, it’s been quietly powering intelligence and battlefield logistics. Since October, it has supplied battlefield-grade AI tools through a strategic partnership with Israel’s Ministry of Defense - technology that’s now center stage amid escalating conflict. Palantir’s data fusion platforms help governments act on chaos, making it a critical asset in physical warfare and digital disruption.
Back in the U.S., Palantir hit a defense jackpot, with the Department of Defense expanding its Maven Smart System contract ceiling from $480 million to $1.275 billion, while NATO’s adoption of Maven gave the stock another jolt.
As defense spending climbs amid escalating conflicts and AI tools gain traction, PLTR surged to earn the top S&P 500 Index ($SPX) slot. But can this high-flying rocket keep soaring, or is turbulence waiting just ahead?
About Palantir Stock
Founded in 2003, Palantir Technologies (PLTR) has evolved into a commanding presence in the AI and data integration domain. What began as a mission to aid counterterrorism now spans cutting-edge platforms - Gotham for governments, Foundry for enterprises, and the rapidly ascending Artificial Intelligence Platform (AIP), launched in 2023.
These tools empower institutions to harness vast data troves with surgical precision. Operating across four continents, Palantir does not just process information; it weaponizes it for clarity, compliance, and strategic dominance in an increasingly complex world.
Valued at a market cap of $333.7 billion, PLTR stock is a software titan in the large-cap arena. The stock has been tearing through resistance, skyrocketing nearly 83% on a YTD basis. The stock first touched the $140 mark on June 11 and has since surged to new highs above $144.
But zoom out, and the story gets even more interesting. Over the past 52 weeks, the stock surged 452%, and after stretching that lens, PLTR climbed a stunning 747% across two years, and an exceptional 1,567.5% surge over the past three years.
Even with PLTR stock tearing through new highs, its valuation is hitting nosebleed territory. A forward adjusted price-earnings ratio of 243x and a price-sales ratio of 85.9x are exorbitant, even for a hypergrowth software company.
Palantir Beats Q1 Earnings Projections
Palantir reported impressive first-quarter 2025 earnings on May 5. The company’s revenue surged 39% year over year to $884 million, edging past Wall Street's estimates, and momentum showed no signs of slowing. Meanwhile, adjusted EPS climbed by 62.5% annually to $0.13. Palantir’s AIP is what is fueling this rocket, catching fire across both government and commercial sectors.
The government segment generated $487 million in revenue, up 45% annually, with U.S. government revenue accounting for $373 million, also growing 45%. At the heart of this surge was deepening ties with the Department of Defense.
In the U.S., total revenue spiked 55% year over year to $628 million. But the real head-turner was U.S. commercial revenue, which pulled $255 million, up a staggering 71% annually. Bookings surged 183%, hitting $810 million - the strongest total contract value (TCV) Palantir has ever recorded in its commercial U.S. operations.
Customer growth has followed suit, now at 769 total customers, up 39% year over year. And these are not casual contracts. Average revenue from its top 20 clients rose 26% to $70 million. On the government side, Palantir secured $1.5 billion in TCV, including a new NATO partnership and deeper inroads in the U.K.’s healthcare and defense sectors.
Plus, the company wrapped the quarter with $5.4 billion in cash and zero debt.
And with a quarter that strong, of course, guidance had to rise. Palantir now expects full-year revenue between $3.89 billion and $3.902 billion, marking nearly 36% annual growth. U.S. commercial alone is anticipated to top $1.178 billion, up at least 68%. With 2025 free cash flow projected between $1.6 billion and $1.8 billion, and Q2 revenue poised to be between $934 million and $938 million, Palantir might just be getting started.
Analysts tracking Palantir expect 2025 profit to reach $0.37 per share, up 362.5% year-over-year, and rise another 18.9% to $0.44 per share in fiscal 2026.
What Do Analysts Expect for Palantir Stock?
Last week, Loop Capital turned up the volume on PLTR stock, hiking its price target to $155 from $130 and doubling down on its “Buy” rating. Loop called Palantir an “early software leader” in enterprise AI. The analyst was impressed with AIP, booming AI trends, and the company’s edge in a rapidly scaling market.
Wall Street’s sentiment on PLTR stock is clearly split - bulls see promise, skeptics preach caution. The stock has a consensus “Hold” overall. Of the 20 analysts offering recommendations, three advise a “Strong Buy,” 12 analysts play it safe with a “Hold,” one suggests a “Moderate Sell,” and the remaining four maintain a “Strong Sell.”
Although the stock is trading at a premium to its average analyst price target of $104.94, the Street-high target of $155 signals that PLTR can still climb as much as 12% from current levels.
