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The S&P 500 Index’s ($SPX) journey through 2025 has been anything but smooth sailing. A jittery start — rattled by tariff threats, oil price shocks, and escalating Middle East tensions — saw the index teeter under pressure. But true to its resilient form, Wall Street found its footing. A truce overseas, stellar earnings, and cooling trade rhetoric helped catapult the index to an all-time high by late June.
Yet, even as the broader market has regained its stride, one name has outpaced the pack: Palantir Technologies (PLTR). Specializing in defense-grade software and advanced analytics driven by artificial intelligence (AI), Palantir not only survived the geopolitical crosswinds but thrived in them.
As investors sought shelter in companies with real-world relevance and government ties, PLTR stock took flight. Palantir's deepening footprint across global defense and national security corridors have acted like rocket fuel in a market looking for clarity.
Halfway through 2025, PLTR has not just outperformed — it has seized the crown as one of the S&P 500’s top-performing stocks this year. With that in mind, let’s take a closer look at what’s fueling Palantir’s remarkable run.
About Palantir Stock
Palantir specializes in cutting-edge data analytics and AI platforms. Its flagship products, Gotham and Foundry, enable organizations and governments to integrate and analyze disparate datasets and inform critical decisions. Headquartered in Denver, Colorado, Palantir has steadily expanded its presence in both the government and private sectors. Currently, the company boasts a market capitalization of approximately $321 billion, cementing its position among the world’s most valuable tech enterprises.
Palantir shares have surged 73% on a year-to-date (YTD) basis, significantly outperforming the broader S&P 500 Index’s gains of just 5.4% YTD. Palantir hit its 52-week high of $148.21 on June 26 before retreating slightly.
Despite its impressive rally, signs of pessimism are building up, primarily centered on Palantir's extremely high valuation. PLTR stock is priced at 357 times forward adjusted earnings and 107 times sales, well above its sector averages.
Palantir’s Q1 Results Demonstrate Solid Potential
Palantir released its first-quarter 2025 earnings report on May 5, and the results underscored a powerful growth trajectory. The company generated revenue of $884 million, a 39% year-over-year (YOY) increase, comfortably beating the consensus estimate.
U.S. revenue led the way, climbing 55%, with U.S. commercial revenue soaring 71% and U.S. government revenue growing a robust 45%. The company closed “139 deals of at least $1 million, 51 deals of at least $5 million, and 31 deals of at least $10 million” in the quarter. Palantir also booked its highest quarter of U.S. commercial total contract value (TCV), coming in at $810 million, up 183% annually.
Adjusted net income hit $334.4 million, compared to $196.9 million in the year-ago quarter. Meanwhile, adjusted EPS increased 62.5% YOY to $0.13 per share.
In response to its strong performance, management raised its fiscal 2025 guidance, now expecting revenue between $3.89 billion and $3.9 billion. Adjusted income from operations is estimated to be between $1.71 billion and $1.72 billion.
Analysts tracking Palantir project EPS to climb 362.5% YOY to $0.37 in fiscal 2025 and grow another 16.2% to $0.43 in fiscal 2026.
What Do Analysts Expect for Palantir Stock?
Palantir has a consensus rating of a “Hold” overall. Of the 20 analysts covering the stock, three advise a “Strong Buy,” 12 suggest a “Hold,” one analyst gives a “Moderate Sell” rating, and four rate PLTR stock as a “Strong Sell.”
Shares of Palantir are trading at a premium to the average analyst price target of $104.94. However, the Street-high target of $155 signals that the stock can still rise nearly 19% from current levels.
