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Palantir’s AIP Boom Lifts Outlook as Wall Street Splits Over Sky-High Valuation

The company now expects roughly $4.4 billion in 2025 revenue.

Overview

  • Shares have surged about 145% to 150% in 2025 after a 340% jump in 2024, reflecting accelerating adoption of Palantir’s enterprise AI platform.
  • Palantir reported third-quarter revenue of $1.18 billion, up 63% year over year, with U.S. commercial sales up 121% to $397 million, supported by its rapid five-day AIP ‘boot camp’ model.
  • The company’s government business remains a stabilizer, highlighted by an up-to-$10 billion U.S. Army award and a new two-year, $48 million U.S. Navy ShipOS contract.
  • Partnerships expanded late in the year, including the Chain Reaction initiative with Nvidia and CenterPoint and a new Accenture Palantir Business Group to scale AI deployments.
  • Analyst views are polarized, with bullish targets up to $255 versus bearish calls as low as $50, and concerns focus on a valuation near 115 times sales that some warn has preceded steep declines in past software cycles.