New York, January 13, 2026, 10:42 ET — Regular session
- Palantir shares slipped roughly 1.2% in morning trading, underperforming the broader U.S. benchmarks, which fell about 0.4%
- Citi upgrades its rating to Buy and boosts the target price to $235
- Palantir will release its fourth-quarter results after the market closes on Feb. 2
Palantir Technologies Inc. shares dropped roughly 1.2% to $177.22 Tuesday morning, lagging a mild pullback in U.S. stocks. The software company is buoyed by an analyst upgrade, while investors keep a close watch on its upcoming earnings release.
Citi analyst Tyler Radke raised Palantir to Buy from Neutral and boosted his price target to $235 from $210, citing a pickup in enterprise demand and the possibility of a government defense spending “supercycle.” Citi forecasts Palantir could see 70% to 80% revenue growth by 2026. “We are upgrading PLTR to Buy/High-Risk from Neutral and raising estimates,” the note said, per Seeking Alpha. 1
Palantir announced Monday it will release its fourth-quarter and full-year 2025 results after the market closes on Feb. 2. The stock’s sharp rally has sent its valuation into unusual territory, setting up the upcoming earnings as a key check on whether demand can sustain that momentum. 2
Radke’s argument hinges on moving beyond pilot projects to full-scale rollouts, especially in sectors like healthcare and defense, along with broader adoption of Palantir’s Artificial Intelligence Platform, or AIP. Simply put, the expectation is that initial trials will convert into sizable repeat contracts that noticeably boost revenue.
Palantir announced it will hold a webcast at 5 p.m. ET and respond to shareholder questions via an online portal. The company did not release any preliminary results in the statement. 2
Palantir provides software that helps government agencies and companies integrate and analyze data. The company has been ramping up efforts with commercial clients but still relies heavily on its sizable government contracts, which can fluctuate with their timing. 3
Tuesday’s drop makes it clear the market isn’t handing out freebies after the upgrade. Over the past year, investors have been willing to pay a premium for firms linked to enterprise AI spending, and Palantir is one of those stocks where the key question is how much of that optimism is already baked in.
Still, the setup works both ways. The stock trades at a hefty premium to the broader market, so a stumble in growth, margins, or deal conversion rates could quickly weigh on the shares—even if the long-term outlook remains unchanged.
Investors are focused on whether commercial momentum holds steady and any updates on government demand along with its pipeline. Expect guidance to carry more weight than the headline numbers for the quarter.
Palantir’s next major event is Feb. 2, with the earnings report coming after the market closes and a webcast scheduled for later that night.
