Palantir Technologies’ stock has fallen 28% from its high, but one new forecast says the AI software company could still climb to $225 a share by early 2027. That would be about 50% above the current share price of $150, even after a stretch in which valuation worries and broader economic uncertainty tied to the Iran conflict have pushed the stock lower.
The case rests on numbers that have only gotten stronger. Palantir, which trades on the NASDAQ under the ticker PLTR, said fourth-quarter revenue rose 70% to $1.4 billion, while non-GAAP net income increased 79% to $0.25 per diluted share. Those results drove many Wall Street analysts to raise forward earnings forecasts, and the consensus estimate for 2026 has jumped 30% since the start of the year. In that setting, the stock’s pullback looks less like a collapse in the business than a reset in expectations.
Palantir has become one of the most closely watched names in the artificial intelligence trade because its software is built around an ontology, a decision-making framework designed to organize data and support action. The company also offers tools that integrate large language models into that ontology, a combination that helps explain why Forrester Research recognized Palantir as a leader in AI decisioning platforms. Grand View Research has said the AI platform market could expand 38% a year to $250 billion by 2033, a backdrop that keeps investors focused on companies with proven enterprise traction.
Shyam Sankar, Palantir’s chief technology officer, said last year that “Realizing value from AI in the enterprise requires the elegant integration of LLM workflow and software, and this is only possible with ontology,” and added that the company’s “foundational investments in ontology and infrastructure have positioned us to uniquely deliver on AI demand now and in the world ahead.” Those remarks now read less like a pitch than a description of the business investors are trying to price.
The friction is valuation. Palantir currently trades at a price-to-earnings ratio of 200, after touching 350 times adjusted earnings in August 2025. The forecast behind the $225 call assumes that multiple falls to 150 over the next year even as earnings keep rising, with Wall Street estimating profit growth of 75% to $1.31 a share in 2026 and the company’s adjusted earnings reaching $1.50 a share this year. Palantir has also beaten consensus earnings estimates by an average of 15% over the last six quarters, and that pattern is one reason analysts keep lifting their numbers.
That leaves investors with a familiar Palantir problem: the stock can look expensive and still be cheaper than the business it may become. If earnings continue to outrun forecasts the way they have so far, today’s pullback may end up looking like a pause in a longer run rather than the end of it.
