Where Will Palantir Stock Be in 3 Years?

Palantir Technologies (NASDAQ: PLTR) has been one of the hottest stocks over the past three years, as the company has seen its revenue growth accelerate for 10 straight quarters. The question on many investors' minds is whether this momentum can continue over the next several years for the company to grow into and beyond its current high valuation.

Palantir has become one of the most important companies in the age of artificial intelligence (AI) and the premier AI software-as-a-service (SaaS) stock. The key to the company's success has been its Foundry Artificial Intelligence (AIP) platform, which can gather data from various sources and structure it into an ontology that it then links to physical assets and real-world concepts. This helps significantly reduce the potential for costly AI hallucinations (giving wrong info) and sets up the platform to act as an AI operating system for whichever third-party large language model (LLM) a customer chooses to deploy.

AIP can be used to help solve a multitude of problems across industries, and this breadth has been driving tremendous growth with U.S. commercial customers. At the same time, the company's unique bootcamp go-to-market strategy, where it can help a potential customer solve an actual problem with AIP in about five days, has significantly lowered its sales cycle.

This combination is leading to the company quickly adding new commercial customers, and then those customers quickly expanding once they have been landed. This could be seen in Palantir's results last quarter, as its customer count grew 34%, while its U.S commercial revenue surged 137%.

Palantir started as a defense and intelligence contractor for the U.S. government, whose platform was able to recognize difficult-to-see patterns that allowed its technology to help follow the money trail. It has since become one of the most important companies in helping drive the modernization of the U.S. military and intelligence agencies. It continues to win major contracts and saw its U.S. government revenue rise 66% last quarter.

Image source: The Motley Fool.

Where does the stock head from here?

Palantir generated nearly $4.5 billion in revenue in 2025, and analysts currently project that it will grow its revenue to nearly $15 billion in fiscal 2028 and to just above $23 billion in 2029. If the company were to then settle into 20% to 30% growth, it probably could command a 15 to 20 times forward price-to-sales multiple (P/S) similar to CrowdStrike, which is the market's premier cybersecurity company.

At that multiple, based on its current 2.4 million shares outstanding, the stock would trade between $145 and $195. That's not a lot of upside, and the company would need to continue to really outpace revenue estimates to trade much higher from here.

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