New York, Jan 12, 2026, 11:48 AM EST — Regular session
- Palantir shares climbed following Citi’s upgrade to “Buy” and a boost in its price target.
- The call comes amid investor skepticism over whether Palantir’s growth justifies its current valuation.
- Traders are gearing up for the upcoming earnings report and the guidance for 2026.
Palantir Technologies Inc. shares edged up Monday following a Citi upgrade of the data analytics company, maintaining investor interest after a stellar 2025 performance. The stock climbed roughly 0.4% to $178.21, bouncing between $174.03 and $182.48 during the session.
This shift is significant since Palantir is a key player in the market’s race into enterprise AI software—a crowded space with sky-high expectations. Minor tweaks to Wall Street’s 2026 growth forecasts can still move the stock sharply.
The timing couldn’t be more awkward. The stock’s recent rally has nudged cautious analysts to the sidelines, yet a slip in bookings or guidance could still hit pricey software stocks hard and fast.
Citi analyst Tyler Radke bumped Palantir from “Neutral” to “Buy/High-Risk,” lifting his price target to $235. He said, “We are upgrading PLTR to Buy/High-Risk from Neutral and raising estimates and our target price to $235.” 1
Radke’s thesis rests on the idea that firms are moving beyond pilot projects to wider AI deployments — which could boost budgets and contract values in 2026. For Palantir, the key question is whether it can turn initial curiosity into steady commercial deals rather than isolated successes.
Palantir’s shares surged 135% in 2025, now trading at a hefty premium versus the broader market based on forward earnings — a key measure comparing share price to expected profits over the next year. Citi argues growth and margins could continue beating expectations, even at this elevated valuation. 2
Palantir provides software that enables clients to integrate and analyze massive datasets, maintaining a strong presence in government contracts while steadily expanding its reach into commercial sectors. Central to this strategy is its Artificial Intelligence Platform, or AIP, which the company has showcased across various industries during recent customer events. 3
Palantir’s latest update showed it expects fourth-quarter revenue to surpass Wall Street’s estimates, driven by robust AI-related demand, Reuters reported. The firm projected sales between $1.327 billion and $1.331 billion, topping the average analyst forecast referenced by LSEG. 4
Investors are focused on whether the commercial segment can grow beyond a few big contracts, and if government expansion holds steady amid shifting project timelines. They’re also tuned in for shifts in hiring, spending, or margin strategies that might hint at how quickly AIP is investing.
But this setup works both ways. Palantir’s high multiple leaves almost no margin for weaker guidance, delayed contract wins, or a wider slump in risk appetite — particularly if investors find cheaper AI plays elsewhere.
The next major event to watch is earnings. Palantir is set to report on Feb. 2, providing fresh insight into demand trends and what to expect in 2026. 5
