Palantir Technologies (NASDAQ: PLTR) Stock Price Prediction for 2025: Where Will It Be in 1 Year

• StockStory Top Pick PLTR +1.36%

Shares of Palantir Technologies (NASDAQ:PLTR) lost 2.50% over the past five trading sessions after losing 12.16% the five prior. This year, the stock is up more than 117%, and since its October 2022 IPO, PLTR has surged an eye-catching 1,677.72%. However, since hitting their all-time high on Nov. 3, shares of Palantir have lost more than 21%.

When the company reported Q3 earnings on Nov. 3, it beat on the top and bottom lines with EPS of 21 cents versus 17 cents expected, and revenue of $1.18 billion versus $1.09 billion expected. Palantir issued strong guidance, attributing growth to adoption of its AI software platform. Meanwhile, it announced that government sales — which have been essential to Palantir’s rise — grew 52% from the same quarter a year ago.

In September, it was reported that the company agreed to a £1.5 billion defense deal with the U.K. That comes not he back of an announcement in early August that the U.S. Army is consolidating 75 contracts into a single 10-year arrangement with Palantir valued at $10 billion. However, the so-called smart money have been selling the stock in flurries lately, leaving Palantir's institutional ownership at just 54.69%. JPMorgan, for example, recently reduced its position in PLTR by more than 32%, while T. Rowe Price reduced its position by nearly 24%.

While the stock's forward P/E ratio of 161.29 can be concerning, Palantir's federal contracts and aerospace ties are expected to continue fueling growth. While earnings are rear-facing, the emerging trends seen in the company's Q3 results can serve as a foundation for further rewards for shareholders.

However, PLTR's market multiple implies it could take an investor nearly half a century to recover their initial investment, assuming earnings remained constant. But the assumption from the company — and from Wall Street analysts — is that earnings will continue to grow. So while there is concern about its valuation, what can investors expect from Palantir over the next year? 24/7 Wall St. did some analysis, so let’s take a look at.

24/7 Wall St. Insights:

• Palantir’s government line of business accounts for more than half of its revenue, with existing contracts between the AI firm and the U.S. Department of Defense, Immigration and Customs Enforcement (ICE), the Department of Agriculture, the FBI, the CDC, the U.S. Army and the UK’s Ministry of Defence, to name a handful.

• The company’s explosive commercial revenue growth shows that it is capable of sustainably scaling without being overly reliant upon federal contracts. It also provides services to numerous industries, including energy, data protection, health and life sciences, insurance, hospital operations, retail, semiconductors, telecommunications and utilities, among others.

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Why Invest in Palantir?

The AI environment is ripe for growth, though, of which Palantir should play a major part. According to Grand View Research, the AI market is expected to reach $1.811 trillion by the end of the decade, good for a 35.9% compound annual growth rate (CAGR) between 2025 and 2030. The global market size of AI in 2024 was $279.2 billion, meaning at that forecasted CAGR, by the end of 2025, the market should expand to $379.4 billion. Companies like Palantir that focus on broad AI applications in diverse industries should see the lion's share of that growth.

Not only has the company seen sizable growth, it forecasts sustainable momentum that will help continue that pattern over the course of the next year. High-profile contracts, like the recently signed Army and ICE deals, as well as NATO’s adoption of its AI-enabled military system, highlight its critical role in national security. President Trump's emphasis on defense and government efficiency, exemplified by the Department of Government Efficiency led by Elon Musk, positions Palantir as a go-to AI software provider, boosting investor confidence amid tariff-related market challenges.

Additionally, the company's commercial segment has skyrocketed. Its Artificial Intelligence Platform (AIP), launched in 2023, empowers enterprises in healthcare, finance, and manufacturing to harness AI for data analytics. Palantir’s focus on operational efficiency has improved profitability. Its software-as-a-service model, with high-margin recurring revenue, supports scalability across government and commercial clients. The company’s ability to deploy AIP rapidly, as shown by a 69% increase in customer count to 593, enhances revenue predictability. This profitability, coupled with $3.9 billion in cash reserves, fuels R&D and market expansion, reinforcing investor optimism.

Palantir (PLTR) as a Stock

Since its IPO, Palantir has seen uncommon and exponential share appreciation. An enormous part of that growth came between February 2023 and February 2025, during which time the stock reached its then-all-time-high on Feb. 18. Since its year-to-date low on Jan. 13, PLTR has gained nearly 194%.

Most Wall Street analysts are cautious about the stock, though. The 16 analysts covering PLTR assign it a consensus "Hold" rating, with three analysts giving it a "Buy" rating, 11 giving it a "Hold" rating and two giving it a "Sell" rating. However, price targets for the AI darling represent a vast spread of opinions, with the high-end price target at $255, the median price target at $187.87 and the low-end price target at $50.00.

Estimate

Price Target

%Change From Current Price

Low

$50.00

-69.42%

Median

$187.87

14.87%

High

$255.00

55.91%

Palantir Technologies 2025 Outlook

Palantir has made several important announcements over the past few months, including its $10 billion Army deal and a $30 million contract with ICE to develop a system to help with deportations, as well as a partnership with TWG Global and xAI to bring AI to the financial services industry. That news has driven the stock higher in the short term. But as the broad market's outlook remains clouded, so too does Palantir's. That is reflected in Wall Street's consensus "Hold" rating.

Palantir calls for a minimum 68% jump in commercial revenue to $1.178 billion, with CEO Alex Karp saying, "We are delivering the operating system for the modern enterprise in the era of AI." While Palantir does face competition from both large AI Big Data forms, as well as smaller, fast-growing AI data analytics shops, the company can be seen as having an entrenched position within government and large enterprises.

24/7 Wall St.'s price target for Palantir Technologies is similarly bearish at $107, which represents potential downside of 34.57% from today's stock price. Those figures are based on Palantir having developed the premier AI software, but the decreasing cost of AI and expansion of large language models to lower barriers to entrance in decision-making software. We see projected revenue growth rates moderating over time climb from $3.9 billion in 2025 to $11.9 billion in 2030, alongside normalized EPS growth of $0.58 in 2025 to $1.44 in 2030.

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