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Palantir’s AI Momentum Faces Valuation Scrutiny Ahead of Q4 Results

Wall Street remains divided over Palantir’s outlook.

Overview

  • Adoption of the Artificial Intelligence Platform helped drive Q3 2025 revenue up 63% year over year, with U.S. commercial sales jumping 121% and profits accelerating.
  • Shares trade at extreme multiples, including roughly 110 times sales and more than 160 times forward earnings, raising sensitivity to any growth slowdown that analysts forecast into 2026.
  • Palantir is scheduled to report fourth-quarter results after the market close on Feb. 2, which investors view as the next major test.
  • On Jan. 20, Palantir and HD Hyundai expanded their partnership to broaden deployment of Foundry and AIP across the group and establish a Center of Excellence.
  • Phillip Securities initiated coverage with a Buy rating and a $208 target alongside robust FY25 estimates, even as other analysts expect peers like Broadcom, Microsoft, and Nvidia to outperform in 2026.