Palantir Technologies (PLTR) Stock Forecast & Price Target

Palantir Technologies has demonstrated a robust financial performance, with a 63% revenue growth and an impressive EBIT margin expansion to a record 51% in Q2, supported by high gross margins of 83.8%. The U.S. commercial segment significantly contributed to this positive outlook, achieving a 121% year-over-year increase in revenue to reach a run-rate of $1.6 billion, bolstered by large deals and the successful implementation of its AIP platform. Furthermore, the company’s net revenue retention improved to 134%, indicating strong customer engagement and upselling success, while contractually recognized revenue bookings grew by 16% quarter-over-quarter.

Palantir Technologies has reported a decline in net additions, with a reduction from 80 to 62 quarter-over-quarter, alongside a decrease in sales headcount despite an acceleration in revenue growth rates. The company's international revenue has also shown a downward trend, falling to 25% in 3Q25 compared to 27% in the previous quarter and 31% a year prior, indicating stagnant performance outside the U.S. Moreover, commercial growth has significantly slowed, leading to concerns about the sustainability of Palantir's financial model, particularly as it is considered a niche solution in a highly competitive market, thus undermining management's aspirational long-term targets.