Palantir Technologies (NASDAQ: PLTR) Stock Price Prediction for 2025: Where Will It Be in 1 Year

2015 Getty Images / Getty Images News via Getty Images

Shares of Palantir Technologies(NASDAQ:PLTR) lost 3.86% over the past five trading sessions after losing 0.62% the five prior. So far this year, the stock is up nearly 133%, and since its October 2022 IPO, PLTR has surged an eye-catching 1,802.17%.

In September, it was reported that the company agreed to a £1.5 billion defense deal with the U.K. That comes not he back of an announcement in early August that the U.S. Army is consolidating 75 contracts into a single 10-year arrangement with Palantir valued at $10 billion. However, the so-called smart money have been selling the stock in flurries lately, leaving Palantir's institutional ownership at just 53.78%. JPMorgan, for example, recently reduced its position in PLTR by more than 32%, while T. Rowe Price reduced its position by nearly 24%.

When the company reported Q2 earnings on Aug. 4, it announced that revenues saw year-over-year growth of 48% and topped $1 billion in quarterly revenue for the first time ever, while U.S. government revenues rose 53% from the year-ago period to $426 million. Palantir beat on earnings with 16 cents per share versus Wall Street's expectations of 14 cents per share. The company also upped its full-year guidance, forecasting revenues between $4.142 billion and $4.150 billion, up from its previous forecast of $3.89 billion to $3.90 billion.

While the stock's forward P/E ratio of 213.44 can be concerning, Palantir's federal contracts and aerospace ties are expected to continue fueling growth. While earnings are rear-facing, the emerging trends seen in the company's Q1 results can serve as a foundation for further rewards for shareholders. In the first quarter, Palantir saw year-over-year revenue growth of 39%. U.S. commercial business surpassed a $1 billion run rate, good for 71% year-over-year growth. Meanwhile, its U.S. government revenue grew 45% year-over-year.

However, PLTR's market multiple implies it could take an investor nearly half a century to recover their initial investment, assuming earnings remained constant. But the assumption from the company — and from Wall Street analysts — is that earnings will continue to grow.

So while there is concern about its valuation, what can investors expect from Palantir over the next year? 24/7 Wall St. did some analysis, so let’s take a look at.

Why Invest in Palantir?

The AI environment is ripe for growth, though, of which Palantir should play a major part. According to Grand View Research, the AI market is expected to reach $1.811 trillion by the end of the decade, good for a 35.9% compound annual growth rate (CAGR) between 2025 and 2030. The global market size of AI in 2024 was $279.2 billion, meaning at that forecasted CAGR, by the end of 2025, the market should expand to $379.4 billion. Companies like Palantir that focus on broad AI applications in diverse industries should see the lion's share of that growth.

Story Continues

Not only has the company seen sizable growth, it forecasts sustainable momentum that will help continue that pattern over the course of the next year. High-profile contracts, like the recently signed Army and ICE deals, as well as NATO’s adoption of its AI-enabled military system, highlight its critical role in national security. President Trump's emphasis on defense and government efficiency, exemplified by the Department of Government Efficiency led by Elon Musk, positions Palantir as a go-to AI software provider, boosting investor confidence amid tariff-related market challenges.

Additionally, the company's commercial segment has skyrocketed. Its Artificial Intelligence Platform (AIP), launched in 2023, empowers enterprises in healthcare, finance, and manufacturing to harness AI for data analytics. Palantir’s focus on operational efficiency has improved profitability. Its software-as-a-service model, with high-margin recurring revenue, supports scalability across government and commercial clients. The company’s ability to deploy AIP rapidly, as shown by a 69% increase in customer count to 593, enhances revenue predictability. This profitability, coupled with $3.9 billion in cash reserves, fuels R&D and market expansion, reinforcing investor optimism.

Palantir (PLTR) as a Stock

Since its IPO, Palantir has seen uncommon and exponential share appreciation. An enormous part of that growth came between February 2023 and February 2025, during which time the stock reached its then-all-time-high on Feb. 18. Since its year-to-date low on Jan. 13, PLTR has gained nearly 182%.

Most Wall Street analysts are cautious about the stock, though. The 19 analysts covering PLTR assign it a consensus "Hold" rating, with four analysts giving it a "Buy" rating, 13 giving it a "Hold" rating and two giving it a "Sell" rating. However, price targets for the AI darling represent a vast spread of opinions, with the high-end price target at $200.00, the median price target at $158.39 and the low-end price target at $45.00.

Estimate Price Target %Change From Current Price Low $45.00 -74.28% Median $157.65 -9.91% High $215.00 22.85%

Palantir Technologies 2025 Outlookipopba / iStock via Getty Images

Palantir has made several important announcements over the past few months, including its $10 billion Army deal and a $30 million contract with ICE to develop a system to help with deportations, as well as a partnership with TWG Global and xAI to bring AI to the financial services industry. That news has driven the stock higher in the short term. But as the broad market's outlook remains clouded, so too does Palantir's. That is reflected in Wall Street's consensus "Hold" rating.

Palantir calls for a minimum 68% jump in commercial revenue to $1.178 billion, with CEO Alex Karp saying, "We are delivering the operating system for the modern enterprise in the era of AI." While Palantir does face competition from both large AI Big Data forms, as well as smaller, fast-growing AI data analytics shops, the company can be seen as having an entrenched position within government and large enterprises.

24/7 Wall St.'s price target for Palantir Technologies is similarly bearish at $107, which represents potential downside of 38.85% from today's stock price. Those figures are based on Palantir having developed the premier AI software, but the decreasing cost of AI and expansion of large language models to lower barriers to entrance in decision-making software. We see projected revenue growth rates moderating over time climb from $3.9 billion in 2025 to $11.9 billion in 2030, alongside normalized EPS growth of $0.58 in 2025 to $1.44 in 2030.

View Comments