Palantir (PLTR.US) Q4 performance exceeded expectations, leading major Wall Street banks to raise their target price, with the highest reaching $260!

Palantir (PLTR.US) stock price rose by more than 5.7% in early trading on Tuesday, with the company's fourth-quarter performance and 2026 outlook exceeding market expectations. Wall Street analysts are generally bullish, further strengthening its position as a "beneficiary of AI core". The financial report showed that Palantir had a strong performance in the fourth quarter, with total revenue increasing by about 70% year-on-year, and achieving an acceleration in revenue growth for the tenth consecutive quarter, mainly driven by explosive growth in US commercial customer business. The 2026 fiscal year guidance provided by the company is particularly impressive, with a projected annual revenue growth rate of over 60%, much higher than the market's previous expectation of a slowdown to about 40%, while the growth target for the US commercial business is as high as 115%, prompting investors to re-evaluate its long-term growth potential. Seeking Alpha analyst Jonathan Weber stated that almost all key indicators for Palantir are showing improvement, with business growth accelerating, but the company's valuation is still relatively high, currently around 50 times price-to-sales ratio and 90 times operating profit multiple, so it is not a "must-buy target", and is more suitable for investors with different risk preferences to "hold or buy". Another analyst, Gary Alexander, pointed out that the most impressive aspect is that the company's guidance shows that it can maintain high-speed growth of over 60% in 2026, which will help alleviate market concerns about its high valuation. He emphasized that Palantir still has less than 600 US enterprise customers, commercial monetization is still in the early stages, and the future growth runway is long. At the same time, the company's cash flow efficiency is outstanding, with a Q4 "Rule of 40" score as high as 127, and a projected free cash flow profit margin of over 55% in 2026. However, there are also warnings about valuation risks. Quantamental Investor analyst Ahan Vashi believes that despite the company's sales and profit guidance being significantly higher than market consensus expectations, his model calculates a fair value of about $95.46, indicating that the current stock price still has about 40% downside potential, so Palantir is still "overvalued". He has upgraded the rating from "strong sell" to "tactical sell", and emphasized that this is not a short recommendation, but due to overheated valuation. On the Wall Street investment bank side, several institutions have raised their target prices and reiterated their bullish stance after the financial report. Baird upgraded Palantir from a "neutral" rating to "outperforming the market" with a target price of $200, stating that its revenue and free cash flow performance were "overly impressive", and its valuation has finally become reasonable, pointing out that Palantir remains one of the clearest winners in AI. Wedbush continues to maintain an "outperforming the market" rating and a target price of $230, with analyst Dan Ives stating that Palantir's AIP AI platform moat is "unparalleled", the company is leading the AI revolution into the "implementation stage", and the US commercial business remains the core growth engine. Citi maintains a "buy/high risk" rating and raises the target price to $260, stating that the Q4 performance was once again "exceptionally outstanding", with accelerated growth in government and commercial businesses, and multiple order indicators pointing to "triple-digit growth". Morgan Stanley maintains a "neutral to the market" rating and a target price of $205, stating that the company's 2026 guidance shows growth of 61%, and Palantir is poised to rapidly reach the $10 billion revenue scale with rare high growth and high profit margins in the software industry, further solidifying its position as a leader in AI.