Here's How Much More Upside Is Left in Palantir Stock, According to Wall Street Analysts

Palantir Technologies (NASDAQ: PLTR) was a retail investor darling in 2023, 2024, and 2025. The stock soared 2,670% during that period, despite Wall Street analysts suggesting the price was already too high for most of it. But the stock has taken a tumble since the end of 2025, dropping roughly 37% from its November 2025 all-time high amid the broader software-as-a-service (SaaS) stock sell-off.

Meanwhile, analysts have begun to take a fresh look at the company as it continues to deliver phenomenal revenue growth and earnings. In fact, despite a recent rally in the stock, the average Wall Street price target is significantly above the current price.

Image source: Getty Images.

How high can Palantir climb?

Palantir continues to defy expectations with its revenue growth and improving profitability. Revenue accelerated once again in the first quarter, with its top-line climbing 85% year over year in the first quarter. It's showing particular strength in its U.S. business, and its backlog of remaining deal value shows strong momentum and a long runway for continue revenue growth. Overall, adjusted operating margin expanded to 60%. Management also raised its full-year guidance along with those earnings results.

The software business should continue to produce very strong operating leverage. Its research and development expenses fell to less than 10% of revenue in the first quarter. Meanwhile, the company has taken a strategic approach to sales, letting the software speak for itself for the most part. It has recently turned to boot camps to show companies and their employees how to use Palantir's software to improve operations, a move that has been extremely effective in driving customer acquisition.

Palantir seemingly has no equal to compare its software against. The threat of AI labs supplanting existing enterprise software at a lower cost seems even less likely for Palantir than for more basic software solutions. The core of Palantir is its ontology framework, which enables users to find meaningful connections between disparate data sets. The artificial intelligence built into Palantir's platform isn't easily replicated. As a result, Palantir should see high revenue retention rates.

Execution and growth have never been a problem for Palantir. The biggest concern with the stock has always been its valuation. After the sell-off, the stock trades at 43 times next year's sales expectations and 93 times forward earnings. That's a huge premium over the market. Nonetheless, analysts think it's too cheap.

The median price target for Palantir stock on Wall Street is $200 per share. That price is roughly 54% above the stock's current price as of this writing. And if it reaches that price within 12 months, the stock would trade at roughly the same forward P/E as today, based on analysts' estimates. That suggests Wall Street sees a lot more growth to come for the business.

While management has produced excellent results over the last few years, there's only so long revenue and earnings can accelerate. When the slowdown arrives, the stock could take a hit. Whether you should buy Palantir today depends on whether you think the company can continue to efficiently attract new customers and expand its market at scale.

Adam Levy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.