Why Palantir Stock Is Skyrocketing Today

Palantir (NASDAQ: PLTR) stock is seeing massive gains in Wednesday's trading. The software specialist's share price was up 18.2% as of 3:20 p.m. ET, amid an 8.5% gain for the S&P 500 and a 9.9% rally for the Nasdaq Composite.

Palantir stock is surging today after President Donald Trump announced a 90-day pause on reciprocal tariffs for all countries except China. Despite volatility in the broader market, Palantir's share price is now up 21.5% across 2025's trading.

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Palantir stock surges following Trump's tariff pivot

In a note published to Trump Media's Truth Social platform today, President Trump announced that there would be a 90-day pause on reciprocal tariffs for all countries except China. During the three-month grace period, imported goods from these countries will instead be taxed at a 10% rate. Meanwhile, the Trump administration will be raising its tariff rate on Chinese goods from 104% to 125%.

What's next for Palantir?

With its last earnings update, Palantir said it expected sales for its quarter ended in March to be between $858 million and $862 million. If the business were to hit the midpoint of that forecast range, it would mean posting year-over-year sales growth of 35.6%.

Meanwhile, the company expects full-year sales to be between $3.741 billion and $3.757 billion, good for an annual growth of roughly 31% at the midpoint of the guidance range. Non-GAAP (adjusted) free cash flow for the period is projected to come in between $1.5 billion and $1.7 billion, suggesting year-over-year growth of 28% at the midpoint of the guidance range.

With increased uncertainty on the macroeconomic outlook amid rapidly shifting tariff policies, whether Palantir will guide its forecasts downward with its next earnings report remains to be seen. But the business has been serving up very impressive momentum.

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Keith Noonan 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.