Will Recent Events Dent Palantir Technologies Stock 385% Growth?

Zinger Key Points

Palantir stock surged 79% YTD and 385% in 12 months, far outpacing S&P 500 and Nasdaq gains.
Strong earnings, soaring U.S. government deals, and bullish analyst calls drive investor optimism.
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Palantir Technologies PLTR stock surged 79% year-to-date, driven by quarterly earnings, a boost in government contract revenue, and positive analyst sentiment.

Palantir has far outpaced the market indices. The S&P 500 and the Nasdaq-100 (which also includes Palantir) gained 7-9% during the period. Palantir stock gained over 385% in the last 12 months, compared to the indexes’ 12-13% returns.

Founded as a defense contractor, Palantir has since expanded to the private sector.

Also Read: Palantir Just Teamed Up To Reinvent Nuclear Power: Here’s What’s At Stake

In May, Palantir reported first-quarter revenue of $883.86 million, up 39% year over year and beating analyst estimates of $862.83 million. U.S. revenue grew 55% to $628 million.

U.S. commercial revenue increased by 71% to $255 million, and U.S. government revenue rose by 45% to $373 million.

Palantir’s customer count grew 39% year-over-year and 8% quarter-over-quarter. The company closed 139 deals worth over $1 million during the quarter and 51 deals worth at least $5 million.

Palantir expects second-quarter revenue of $934 million-$938 million versus estimates of $899.12 million. Palantir expects full-year 2025 revenue of $3.89 billion to $3.90 billion, up from analysts’ expectations of $3.75 billion.

Analyst Opinion

Wedbush analyst Dan Ives expects Palantir to be a top winner in the AI boom, calling it the “Messi of AI.” In the coming years, Ives projected that Palantir’s stock could surpass $400 and reach a $1 trillion market cap.

He stated that Palantir, alongside Nvidia Corp NVDA, is a key force driving the next phase of the AI revolution.

Previously, Ives had reaffirmed Palantir as a top pick, citing the North Atlantic Treaty Organization deal as a key growth catalyst. He views the agreement as a strong validation of Palantir’s expanding traction across federal and commercial sectors.

Twenty-five analysts have set a consensus price target of $76.72 for Palantir. Loop Capital issued the highest target, $155, on June 12, 2025. Based on the latest analyst ratings, the average target of $128.67 suggests a potential downside of 3.98% from the current price.

Recent Events

Recently, Palantir collaborated with BlueForge Alliance on a Navy-backed initiative to digitize and speed up U.S. warship production.

The company is also in talks to supply its technology to the Internal Revenue Service and Social Security Administration, further deepening government ties.

Reportedly, Palantir has bagged over $113 million in contracts since Trump took office, excluding the $795 million DoD contract.

However, it’s not all rosy about Palantir. States accused the Trump administration of illegally sharing Medicaid recipients’ health data with immigration authorities, bypassing federal privacy laws.

California and other states alleged Palantir is helping the Department of Government Efficiency build a massive database of Americans’ info for immigration enforcement.

Officials warned that this data sharing could discourage eligible immigrants from enrolling in Medicaid, harming public health and straining state healthcare systems.

Price Action: PLTR stock is up 1.62% at $136.53 at last check Monday.

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