Shares of Palantir Technologies Inc. (NASDAQ:PLTR) gained 8.14% over the past five trading sessions, bringing its year-to-date gain to 82.74% and its one-year gain to an absurd 449.16%. Since going public in October 2020, the AI firm is up more than 1,393%.

In late May, the Trump administration rewarded a federal contract worth hundreds of millions to Palantir with the objective of creating a database on every U.S. citizen. On April 21, Investor’s Business Daily reported that Palantir won an immigration tracking federal contract from the U.S. Immigration and Customs Enforcement (ICE). The ICE contract, which is said to be worth $30 million, will be used to create an immigration Lifecycle Operating System to be used in deportations.  Earlier in April, the price target for Palantir was lowered by analyst Mark Schappel of Loop Capital to $125 from $141, with the firm maintaining its “Buy” rating. However, there is optimism surrounding the AI company, whose strong full-year guidance for 2025 sees a sales forecast between $3.74 billion and $3.76 billion, topping average estimates of $3.52 billion.

Big Data is expected to be big business in the years ahead. According to platform provider Edge Delta, the market for data services is projected to grow from $220.2 billion in 2023 to $401.2 billion by 2028 — an increase of 82.2%. Palantir is a major player in the space. The company was co-founded by entrepreneur and venture capitalist Peter Thiel, who was also the co-founder of PayPal Holdings (NASDAQ:PYPL) and the first outside investor in Facebook.

The company stands as one of Big Data’s industry dominators. However, finding data-driven assessments of where the company’s stock will be in the medium and long term can be complicated. With Wall Street analysts only going as far as providing one-year price targets, it can be difficult for investors to accurately gauge predictions for stocks like these over longer horizons. But for buy-and-hold investors who want to know where Palantir’s stock might be several years down the road, 24/7 Wall St. has done the legwork and can provide insights around the numbers coming from the company, and which market segments the company is operating in that are most exciting to us.

Key Points in This Article:

• Key growth drivers: Palantir’s four operating platforms, AIP, Foundry, Gotham and Apollo.
• The company’s AI platforms are in high demand from the federal government.
• Palantir’s two strategic partnerships with space companies will leverage its AI intelligence to drive innovation in space technology.
• If you’re looking for an AI stock early in the AI growth cycle, grab a complimentary copy of our “The Next NVIDIA” report. It has a software stock that could ride dominance in AI to returns of 10x or more.

Palantir’s Results After Four Years

The following is a table that summarizes the performance in share price, revenues, and profits (net income) of PLTR from its inception in 2020 through the second quarter of 2024:

Year	Share Price	Revenue*	Net Income*
2020	$23.55	1.092	1.166
2021	$18.21	1.541	.520
2022	$6.29	1.905	.373
2023	$17.17	2.225	.209
2024	$77.18	2.87	.477

*Revenue and net income in $billions

Since going public, Palantir saw its revenue grow experience explosive growth while net income has fallen, although it has ticked up from 2023 to 2024. That drop in net income can be easily attributed, though. The company’s IPO in 2020 raised $2.6 billion, but that was shortly followed by 2022’s year-long bear market. Nonetheless, by 2023, the Big Data firm was able to reach profitability for the first time in its then 20-year history.

The momentum has continued with a series of earnings beats, most recently in March when Palantir reported that in Q1, the company beat on EPS by 1.11% and revenue by 2.52%. That marked the seventh consecutive EPS beat for the company, and the ninth in 10 quarters.

Key Drivers of Palantir’s Stock Performance

1. Palantir’s Expansion and Adoption of AI and Machine Learning Platforms: In addition to its AI bootcamps, the company offers clients four platforms to help manage, analyze, and secure their sensitive data. The first, AIP, focuses on introducing AI into companies’ operations. Foundry, Palantir’s operating system for modern enterprises, allows customers to harmonize and automate decision-making in complex settings while bridging the divide between core business and operating teams with data teams and modeling teams. Gotham, its third platform, focuses on a global scale, with the company billing the software as the weapons system for decision-making, which has extensive applications in defense and combat. Finally, Palantir’s Gotham platform is an operating system for continuous delivery with a focus on deployment — that is, integrating a machine-learning model into a production environment. Palantir is also making a strong push into modular sales to attract smaller clients and scale them with customer solutions as they grow. This strategy will significantly expand Palantir’s customer base and provide years of earnings growth.

2. Government Demand: Palantir’s revenue from government sources has outperformed revenue from commercial sources each year since 2020, with notable growth every year. In 2023, government-sourced revenue regifted $1.222 billion compared to $1.002 billion for commercially-sourced revenue. The company’s government clients include the United States Intelligence Community and the United States Department of Defense (DoD). Palantir’s software as a service (SaaS) is one of only five that are authorized for the DoD’s Mission Critical National Security Systems. By revenue, the U.S. government is the company’s largest client, and with ever-growing defense spending as a fixture of the U.S. federal government’s budget, the relationship is ripe. Bottom line, government demand is still core to Palantir, and with modular sales, the company will pack a double punch of private and public.

3. Space Partnerships: On June 27, 2024, Palantir signed a strategic partnership with Voyager Space with the aim of leveraging its AI intelligence to drive innovation in space technology. According to its press release, Voyager will now fully integrate Palantir’s AI capabilities into its defense solutions, enhancing communications, military research and development, and bolstering intelligence and space research with the end goal of making space more accessible to the defense community. Voyager will be using Palantir’s Foundry platform. This marks the second strategic space partnership for the company, which also signed an agreement with Starlab Space on June 20, 2024. In this deal, Palantir became the exclusive supplier of enterprise-wide software data management solutions for the Starlab commercial space station — a planned low Earth orbit venture that is expected to launch no later than 2028 and is a joint venture between Starlab and Airbus.

Palantir (PLTR) Stock Prediction in 2025

According to Wall Street analysts, the current median one-year price target for Palantir’s stock is $104.27, which represents potential downside of 24.11% from today’s share price. Of the 17 analysts covering PLTR, the stock is a consensus “Hold,” with 10 analysts assigning it a “Hold” rating, three assigning it a “Buy” rating and four assigning it a “Sell” rating.

24/7 Wall St.’s 12-month forecast is less bearish, with a projection for Palantir’s stock price to be $120 with EPS coming in right at $0.43, based on strong CAGR growth in sales of government contracts, upwards of 26% annually, and having factored for $3.186 billion in forecast revenue. Our price target represents 12.66% downside potential from the current stock price.

Palantir (PLTR) Stock Forecast Through 2030

Year	Revenue*	Net Income*	EPS
2025	$3.467	$1.178	$0.47
2026	$4.198	$1.465	$0.56
2027	$5.203	$1.686	$0.71
2028	$6.185	$2.050	$0.87
2029	$7.300	$2.496	$1.06
2030	$8.482	$2.990	$1.27

*Revenue and net income in $billions

Palantir (PLTR) Stock Price Target for 2025–2030

On the back of forecast revenue in excess of $8 billion, we expect Palantir’s net income to surpass $2 billion for the first time, and post an EPS of $1.27. We expect free cash flow to approach $6 billion by posting $5.895 billion. The price projection for 2030 is $192, or 39.73% potential upside from today’s stock price.

Year	Price Target	%Change From Current Price
2025	$120	-12.66%
2026	$135	%
2027	$157	%
2028	$163	%
2029	$178	%
2030	$192	39.73%

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