Will Palantir (PLTR) Stock Hit $200 in 2026?
Is the market for artificial intelligence (AI) services past its expiration date? The jury is still out on that topic, but recently reported results from Palantir Technologies (NASDAQ:PLTR) suggest that the AI frenzy is far from over.
Lately, PLTR stock has been considered one of the best AI stocks to own now. On the other hand, as we’ll discuss in a moment, the stock’s price action during the past six months has been frustrating and confusing.
Yet, the bears and pessimists got a major wake-up call on Tuesday when Palantir stock shot higher. This occurred even though the NASDAQ 100 technology stock index was deep in the red. Clearly, something unusual is going on — and just maybe, Palantir stock is destined to break through $200 before the year is finished.
The Start of a Revival?
Although PLTR stock is up by 85% over the past 12 months, don’t get the wrong idea. The stock has spent the past half-year in an aimless range-bound pattern, much to the chagrin of some Palantir investors.
Something occurred on Tuesday that could jump-start a revival in PLTR stock, though. Bear in mind that $200 isn’t out of the question for 2026 since the stock already hit that level in 2025.
Also, as I alluded to earlier, Palantir stock was in rally mode on a day when NASDAQ 100 were sinking fast. That’s a great sign for Palantir and its shareholders since it indicates practically unstoppable momentum and resilience.
There is a serious concern, though. If PLTR is up substantially over the past year, are there valuation-related red flags with Palantir?
Traditional valuation metrics would suggest that the answer is yes. For one thing, Palantir has a trailing 12-month (TTM) price-to-earnings (P/E) ratio of 197.01x, which is a whopping 721.19% above the sector average.
We’re getting into some dangerous valuation territory here, it would seem. In addition, Palantir has a trailing 12-month (TTM) price-to-sales (P/S) ratio of 88.63x, which is a mind-blowing 2,435.15% above the sector average.
Yes, It Was a “Blowout” Quarter
The debate surrounding Palantir’s lofty valuation was front and center on Tuesday, and the key phrase for the bulls was “blowout quarter.” This phrase referred to Palantir Technologies’ highly impressive results from the company’s fourth-quarter 2025 financial report.
In the quarterly press release, Palantir CEO Alex Carp declared that his company is “alone” in focusing exclusively on “scaling the operational leverage made possible by the rapid advancements of AI models.” It’s a bold statement and, possibly, an attempt to position Palantir Technologies as a trailblazer in AI technology advancement.
Still, Karp’s boasting is supported by Palantir’s “blowout” Q4 2025 results. It was a quarter in which Palantir closed 180 deals of at least $1 million and raked in $4.475 billion worth of revenue, up 56% year over year.
Of particular note was Palantir’s U.S. commercial revenue, which grew 109% to $1.465 billion. It’s also eye-opening, though, that the company’s U.S. government revenue increased 55% to $1.855 billion.
Turning to the bottom-line results, Palantir reported earnings of $0.25 per share, well above $0.14 per share in the year-earlier period. Moreover, this result beat Wall Street’s consensus estimate of $0.23 per share. So yes, the quarter was a “blowout” by any reasonable standard.
A Tough Act to Follow
Looking at the current year, Karp announced a “2026 revenue growth guide of 61% year-over-year.” Is this a realistic objective, though?
To reiterate, Palantir’s Q4 2025 revenue grew 56% year over year. Sure, the company’s U.S. commercial revenue surged 109%, but that’s just part of the overall picture.
In other words, it won’t be sufficient for Palantir Technologies to maintain the total revenue growth momentum from Q4 2025. To achieve Karp’s goal, the company would have to raise the average revenue growth rate to 61% in 2026.
This would just be a continuation of strong revenues; it would require “growth of growth,” or an acceleration of Palantir’s already high revenue growth rate. It’s a tall order, to say the least, but evidently the market likes to hear Karp’s optimistic projections.
For the time being, it’s plausible that Palantir’s recent financial results can justify the company’s high valuation. Plus, Tuesday’s share price action showed that sentiment is riding high for PLTR stock.
Therefore, it’s entirely possible for Palantir stock to break out of its long-standing trading range and bust through the key $200 level this year. Nevertheless, any positing sizing ought to be small as it will difficult — albeit not impossible — for Palantir Technologies to meet Karp’s stated goal for 2026 revenue growth.