With a market cap of $300 billion, Palantir (PLTR) is among the 10 largest tech stocks in the U.S. The enterprise-facing data analytics giant has returned more than 1,300% to shareholders since its initial public offering in September 2020. 

Despite a challenging macroeconomic environment, Palantir grew its sales by 29% year-over-year in 2024, up from 17% in 2023. Palantir has grown adjusted earnings per share from $0.06 in 2022 to $0.41 in 2024, indicating an annual growth rate of 161%. 

These stellar growth rates have allowed PLTR stock to command a hefty premium in 2025. Is the tech stock still a good buy right now? 

Should You Buy Palantir Stock Today?

Palantir continued its impressive financial trajectory in Q1 with revenue reaching $884 million, up 7% quarter-over-quarter and 39% year-over-year. This growth rate is remarkable for a company of Palantir’s size and demonstrates strong market demand for its AI and data analytics solutions.

In the March quarter, U.S. commercial revenue surged 71% year-over-year to $255 million, indicating Palantir’s successful expansion beyond government contracts into enterprise markets. This diversification reduces dependency on federal spending and opens larger addressable markets, which investors typically reward with higher valuations.

Government revenue remains strong, growing by 45% year-over-year to $373 million in Q1, driven by increased adoption of Palantir’s military planning and targeting systems. U.S. government contracts provide stable, high-margin recurring revenue that offers predictability investors value.

CEO Alex Karp’s commitment to U.S. defense partnerships sets Palantir apart from other Silicon Valley competitors who have historically been reluctant to work with defense agencies. As geopolitical tensions rise globally, this positioning could provide competitive advantages in securing critical national security contracts.

The shareholder letter describes “a ravenous whirlwind of adoption” for large language models and AI infrastructure, suggesting Palantir is well-positioned in a rapidly growing market. With enterprises rushing to implement AI solutions, Palantir’s early investments in this technology are being validated.

What Is the Target Price for PLTR Stock?

From an investment perspective, Palantir’s sustained growth rate at its current scale reflects robust demand for its products. The company’s expanding commercial business and stable government contracts support a bullish case. 

Complimenting its speed and scale of growth, Bank of America analyst Mariana Perez Mora recently set a new Street-high target on shares of $150. The analyst said “We see PLTR as the market definer for organizations leveraging AI to drive accelerated tangible results” and kept a “Buy” rating on shares. 

The rest of Wall Street does not feel as strongly. 

Out of the 20 analysts covering PLTR stock, three recommend “Strong Buy,” 12 recommend “Hold,” one recommends “Moderate Sell,” and four recommend “Strong Sell.” The average target price for PLTR stock is $91, more than 30% below its current trading price. 

Given consensus price targets, it is unlikely that PLTR will touch $150 in 2025. However, if it surpasses the $150 threshold, the tech stock will be valued at 260x forward earnings, which is unsustainable.