Palantir’s (PLTR) AIP Growth Story Drives Rare Double Upgrade

Highlighting Q4 2025 results, the firm noted how PLTR materially exceeded management’s guidance and their estimates, backed by accelerating growth in the U.S. commercial and U.S. government segment.

The main catalyst in the US market, the firm noted, was PLTR’s Artificial Intelligence Platform (AIP). AIP has been accelerating sales momentum and converting pilots into large-scale contracts. Meanwhile, international performance continues to lag owing to structural adoption and procurement barriers.

The company has also demonstrated improved operating execution with expanded gross and operating profitability that exceeded market expectations. Meanwhile, its upbeat outlook for Q1 2026 and full-year 2026 that exceeded consensus estimates is a reflection of assurance in durable and structural demand for AI infrastructure.

Increasing its 2026-27 revenue forecasts, the firm noted that it does not see new AI agents as a threat to the company’s long-term business model.

“We maintain our $170 price target for PLTR and upgrade our rating from “Sell” to “Buy,” as the recent sharp pullback in the share price appears unjustified given continued hypergrowth and the underlying strength of the AIP platform.”

Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.

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Disclosure: None. This article is originally published at Insider Monkey.