Palantir Stock Splits Wall Street as Bookings Cool and Revenue Soars

Palantir Technologies Inc. (NASDAQ:PLTR) posted its 13th consecutive quarter of accelerating revenue growth on Monday, and most Wall Street analysts responded by lifting price targets. The bigger debate now centers on bookings.

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Third-quarter revenue reached $2.31 billion, up 96% year over year and well above the company’s guidance of $2.16 billion to $2.164 billion.

Adjusted EPS of 44 cents topped the 41-cent consensus estimate. U.S. commercial revenue climbed 148% to $984 million and, for the first time, surpassed U.S. government revenue of $953 million. Management raised full-year revenue guidance to $8.53 billion to $8.534 billion and now expects U.S. commercial sales above $3.559 billion.

Here is how six firms reacted.

Morgan Stanley Bets on Sovereign AI

Morgan Stanley: Analyst Sanjit Singh maintained an Equal-Weight rating and raised the price target from $205 to $233. Singh tied the next leg of growth to sovereign AI, where customers post-train open-weight models on their own data.

He noted that summer checks with large customers revealed some hesitation over pricing. Even so, Palantir’s top 20 customers average $146 million in trailing 12-month revenue, compared with about $2.2 million for the average customer. Singh said the firm is "turning more optimistic."

Cantor Stays on the Sidelines Over Valuation

Cantor Fitzgerald: Analyst Thomas Blakey kept a Neutral rating and a $207 price target. Blakey highlighted fast pilot-to-production conversions, including an industrial materials company turning a roughly $3 million pilot into a $29 million annual contract.

He also flagged soft spots. International revenue shrank to about 16% of the total, and adjusted gross margin fell to 85.1%, its second straight quarterly decline. "We remain Neutral rated due to valuation only," Blakey wrote.

Rosenblatt Dismisses Contract Value Worries

Rosenblatt Securities: Analyst John McPeake reiterated a Buy rating and a $260 price target, which he raised in late October. U.S. commercial total contract value grew only 11%, but McPeake noted contracts shorter than a year do not get grossed up in the TCV calculation.

He said the gap with revenue growth is "causing unwarranted concern." McPeake pegs Palantir’s addressable market at $210 billion or more, with only 20% to 25% of Fortune 500 companies currently customers. He also cited the Maven system topping 100,000 users.

D.A. Davidson Calls Palantir Software’s Best Story

D.A. Davidson: Analyst Gil Luria maintained a Buy rating and a $250 price target, based on about 90 times 2027 free cash flow. U.S. customers made up 33 of the quarter’s 41 new logos, Luria noted. Palantir also raised its adjusted free cash flow outlook by $300 million to $4.9 billion at the midpoint.

"We continue to believe Palantir is the best story in all of software," he wrote.

BofA Sees a Warm Reception

BofA Securities: Analyst Ronald Epstein reiterated a Buy rating and a $255 price objective. GAAP EPS of 44 cents got a lift from a tax rate near 1%, Epstein noted. Total contract value of $2.92 billion landed far below his estimate of roughly $4.9 billion.

He expects investors to focus on AIP pilot conversions and whether government momentum holds after 18% sequential growth. Still, Epstein said he expects "these results to be well received by the street."

RBC Remains the Lone Bear

RBC Capital Markets: Analyst Rishi Jaluria kept an Underperform rating but raised the price target from $90 to $130. Total remaining deal value grew just 2% sequentially, and remaining performance obligations held flat near $4.9 billion. Jaluria treats both as leading indicators of revenue durability.

The stock trades near 62 times estimated 2027 free cash flow, while his target implies about 47 times. "Q3 was strong, but durability shifts into focus," Jaluria wrote.

Management expects contract sizes and durations to grow over time. Several analysts said fourth-quarter bookings will show whether the shorter sovereign AI deals were a one-quarter blip.

PLTR Stock Price Activity: Palantir stock was down 2.89% at $173.19 at the time of publication Tuesday, according to Benzinga Pro market data.

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