Overview
Piper Sandler has lifted its price target on Palantir Technologies Inc. to $230.00 from $225.00 and retained an Overweight recommendation on the stock. The updated target sits inside the broader analyst range of $50 to $255, and the shares are trading at a reported price-to-earnings ratio of 342, well above typical market levels.
Quarterly performance and profitability
The research firm pointed to Palantir’s fourth-quarter 2025 results as the primary driver of its increased conviction. The company delivered 70% revenue growth in the quarter alongside a 57% EBIT margin. Those outcomes produced a Rule of 40 metric of 127% for the period. Over the trailing twelve months, Palantir reported a gross profit margin of 80.8% and revenue growth of 47.2%.
Piper Sandler noted the firm’s guidance that calls for 61% revenue growth in 2026, following what the bank described as "immense acceleration" through 2025. The research team also highlighted incremental margins exceeding 70% in the most recent quarter, stating that this supported their especially higher confidence in Palantir’s long-term profitability prospects.
Market positioning
The analysts underscored Palantir’s dual exposure to two demand vectors: rising enterprise investment in operational artificial intelligence and broad modernization efforts within the Federal government sector. These areas were cited as key drivers underpinning the company’s recent revenue and margin strength.
Earnings details and analyst reactions
Palantir reported fourth-quarter 2025 revenue of $1.407 billion and delivered earnings per share of $0.25, beating the previously expected $0.23 per share. The results prompted a range of responses from other brokerages. Wedbush reaffirmed an Outperform rating and set a $230 price target, citing strength across key metrics. Baird upgraded its view on the stock from Neutral to Outperform and placed a $200 target on the shares, pointing to Palantir’s AI capabilities and free cash flow potential. Conversely, Mizuho trimmed its price target to $195 and left its Neutral rating in place, flagging valuation concerns despite describing the quarter’s results as "fantastic."
Context and implications
The combination of accelerated revenue growth, high gross margins, and substantial incremental margins in the quarter are central to Piper Sandler’s decision to raise its target. The firm’s outlook leans on continued demand from enterprise AI deployments and ongoing federal modernization spending as fundamentals supporting continued expansion and profitability.
Takeaway
Piper Sandler’s move to increase the price target to $230 reflects heightened confidence in Palantir’s ability to convert strong top-line growth into durable profitability. At the same time, analyst reactions remain varied, with some firms upgrading based on AI strength and cash flow potential while others point to valuation as a limiting factor.
Note: This report summarizes analyst actions and reported company results without offering investment advice.