New York, Jan 12, 2026, 10:15 AM EST — Regular session
- Citi raises Palantir to Buy/High-Risk and hikes its price target
- Shares rise early on as investors adjust growth expectations for 2026
- Valuation continues to be the key variable before the upcoming earnings report
Shares of Palantir Technologies (PLTR) climbed 1.8% to $180.70 in early Monday trading after Citigroup upgraded the data analytics company to a “buy” rating. The bank also raised its price target to $235, projecting where the stock might head over the next year. Earlier, the stock fluctuated between $174.03 and $182.48. 1
Palantir kicks off 2026 amid investor debates over its lofty valuation following a massive 135% gain in 2025. The stock recently changed hands at a forward price-to-earnings ratio near 178, a steep premium compared to the broader market, Barron’s noted. 2
Citi analyst Tyler Radke predicts revenue estimates for 2026 will rise as companies ramp up AI spending beyond limited pilots, especially in U.S. commercial sectors. He also pointed to increased adoption of “AI agents”—software that performs tasks across multiple systems—and a boost in defense budgets as key growth factors. 3
On Monday, Radke upgraded PLTR to Buy/High-Risk from Neutral, boosting estimates and setting a new target price at $235. He pointed to an emerging commercial and government “supercycle” expected this year, as reported by Seeking Alpha. 4
Palantir sells software that helps governments and companies organize data and run analytics, a business it’s increasingly pushing into the private sector. Its AI platform builds on those tools, using models to answer questions and automate processes within an organization’s own systems.
Palantir’s latest quarterly results showed third-quarter revenue up 63% year over year, hitting $1.181 billion. Adjusted earnings came in at $0.21 per share. The company projected fourth-quarter revenue between $1.327 billion and $1.331 billion, with $6.4 billion in cash, cash equivalents, and short-term Treasuries on hand. It also raised its full-year 2025 revenue forecast to a range of $4.396 billion to $4.400 billion. 5
Palantir outpaced the wider tech sector: the Invesco QQQ Trust, tracking the Nasdaq 100, dipped roughly 0.1%, while the Technology Select Sector SPDR Fund inched up around 0.1%.
Palantir’s stock leaves almost no margin for error. With its steep re-rating, even a hint that deal flow is faltering or government contracts are delayed by budget cycles could send shares tumbling fast.
Investors will be looking closely to see if increased AI spending leads to longer-term, repeatable contracts instead of just one-off pilots, particularly in commercial markets. Competition runs hot, as major cloud providers and data-software companies jockey to package comparable tools within larger platforms.
Palantir’s upcoming quarterly report, expected after the close on Feb. 2, holds the spotlight as investors await its initial outlook for 2026 demand. Analysts are poised to update their price targets, sparking fresh debate in the market. 6
