New York, Jan 14, 2026, 10:42 EST — Regular session
- Palantir shares slipped on Wednesday, following the company’s announcement of its upcoming earnings report date.
- This week, Citi upgraded Palantir to buy, highlighting a 2026 demand “supercycle” driven by AI spending and defense budgets.
- Investors are focused on whether fourth-quarter results will support the stock’s premium valuation.
Palantir Technologies shares edged down 0.3% to $178.37 early Wednesday, despite a new bullish note from Citigroup. Investors remained fixated on the upcoming earnings report.
Timing is key. Palantir has turned into a heavily watched AI play, and its upcoming results will drop into a volatile environment for high-multiple software stocks, where the market shows little tolerance for signs of decelerating growth.
This week, a Citi note challenged concerns over valuation, contending Palantir is entering a “supercycle” fueled by rising U.S. commercial and government demand. It raised the price target to $235. At the time, the stock traded near $179, MarketWatch reported. 1
Citi analyst Tyler Radke flagged potential upward revisions to 2026 revenue estimates, fueled by growing enterprise AI budgets and increased government defense spending, according to Investor’s Business Daily. The report also underscored Palantir’s “remaining deal value” — the amount of contracted work yet to be recognized as revenue — as a crucial metric investors are watching closely for signs of momentum in the U.S. commercial sector. 2
The stock is facing new headline risk tied to a legal battle. In the Palantir-Percepta case, the startup’s lawyers accused Palantir of attempting to “scare others away from leaving” and undermine the company’s growth prospects, according to Bloomberg. 3
In October, Palantir took legal action against former employees, accusing them of breaching noncompete clauses and other contracts, as well as misappropriating confidential data, a Reuters report revealed at the time. 4
Traders are largely dismissing the lawsuit as background noise—at least for now—unless it drags out, reveals sensitive information, or entangles executives in a drawn-out battle. Investors prefer them focused on selling software and closing deals.
The bigger risk lies in the numbers. Bulls are banking on a strong rebound in commercial demand and growth tied to AI, but skeptics caution that deal timing can be uneven, and any slip in guidance could pressure a stock already valued for robust execution.
Palantir said it will release its fourth-quarter 2025 earnings on Feb. 2, after U.S. markets close. 5
