Investing

Goldman Sachs Upgrades Palantir to Buy, Sees 18% Upside and Further Outperformance Into 2027

Goldman Sachs just broke from the Wall Street pack and handed Palantir a rare upgrade, arguing the AI data company is entering a new growth phase that could stretch well beyond what most analysts expect.

By Vandita Jadeja
Published October 9, 2026, 1:30pm ET · 3 min read

Price Targets desk. Editor: Vandita Jadeja.

A person's hand holds a black smartphone horizontally, displaying the Palantir logo and name in dark text on a white screen. The background is a dark blue with abstract, light blue bar graphs and a dynamic, teal-colored rising line chart, symbolizing financial growth.
The Palantir logo appears on a smartphone screen, set against a backdrop of upward-trending financial charts. This visual reflects the optimistic outlook following Goldman Sachs' upgrade to 'Buy' for the tech company. © Shutterstock / Piotr Swat

Goldman Sachs (NYSE:GS | GS Price Prediction) analyst Gabriela Borges upgraded Palantir (NASDAQ:PLTR) to Buy from Neutral with a $230 price target. Goldman’s industry conversations suggest the stock is setting up for another phase of outperformance into 2027.

The upgrade shows growing Wall Street confidence that sovereign AI can extend Palantir’s opportunity again, even though the stock already has a premium valuation.

PLTR price target

Ticker Company Firm Action Old Rating New Rating Old Target New Target
PLTR Palantir Goldman Sachs Upgrade Neutral Buy Not disclosed $230

Analyst’s Case: A Bigger Market Takes Shape

Borges told investors Palantir’s total addressable market “may be setting up for another step function change in depth”. She credits three drivers: sovereign AI, bespoke applications, and the company’s newer verticalization strategy.

Palantir’s second-quarter call supports each point. Management said customers want control over their enterprise data, logic, actions, security, models, and weights.

Customers are also expanding from single operating companies into wider portfolios. One multinational technology company did exactly that and converted to a three-year, nearly $370 million deal.

Goldman adds that after the stock’s underperformance year-to-date, Palantir is trading at a discount to its growth compares.

Palantir’s Growth Engine Keeps Accelerating

Palantir sells the Gotham, Foundry, and AIP platforms. For the second quarter of fiscal 2026, reported August 3, 2026, revenue reached $1.94 billion, up 92.83% YoY. EPS of $0.41 beat the $0.28 consensus, making its 9th consecutive EPS beat.

An infographic with a dark green and white color scheme. The title reads 'WALL STREET INSIDERS: GOLDMAN SACHS UPGRADES PALANTIR'. The 'Analyst Action Summary' table shows Palantir (PLTR) with Goldman Sachs changing its rating from 'Neutral' to 'Buy', indicated by a green arrow, with a price target of '$230' and an 'Implied Upside' of '+16.3%'. The 'Why Now Takeaway' section states Goldman Sachs sees a new phase of outperformance driven by sovereign AI demand extending into 2027. 'Key Rationale & Drivers' lists 'Sovereign AI Demand', 'Bespoke Applications', and 'Verticalization Strategy', each with a relevant icon. A table titled 'KEY Q2 FY2026 FINANCIAL METRICS (REPORTED AUG 3, 2026)' displays metrics like Total Revenue ($1.94B, +93% YOY Growth), U.S. Commercial Rev. ($764M, +149% YOY Growth), U.S. Government Rev. ($809M, +90% YOY Growth), Rule of 40 Score (155%), Net Dollar Retention (157%), and Adjusted Operating Margin (62%). A footer indicates data as of October 8, 2026.
24/7 Wall St.
  • U.S. commercial revenue: $764M, up 149% YoY
  • U.S. government revenue: $809M, up 90% YoY
  • Net dollar retention: 157%
  • Rule of 40 score: 155%

PLTR earnings explorer

Management raised full-year revenue guidance to $8.150 billion to $8.158 billion and expects U.S. commercial growth of at least 134%.

Why the Move Matters Now

Palantir stock trades at $197.82, up 11.29% year to date and 13.47% over the past month. Its 52-week high is $207.52. The forward P/E sits near 85x, which makes Goldman’s “discount” argument a relative call against other high-growth names.

PLTR price scenario

Goldman’s $230 target sits above the consensus target of $195.57. Coverage leans bullish, with 19 Buy and 1 Strong Buy ratings against 9 Hold ratings. CEO Alex Karp has set an ambitious bar: “I am driving the business to grow at a rate equal to or above what we have in U.S. commercial for the next 18 months.”

PLTR analyst ratings

What It Means for Your Portfolio

Goldman’s upgrade gives retirement-focused investors a big bullish voice on Palantir, though the risks are real. Stock-based compensation totaled $265M in Q2 2026.

The company’s filings point to long sales cycles, contracts that customers can terminate for convenience, and heavy U.S. concentration, with U.S. revenue at over 81% of total revenue. A beta of 1.602 points to larger swings than the wider market.

(We reverse-engineered the traits past monster tech winners shared before their runs and put the pattern in a free playbook: The Next Nvidia Playbook.)

The next test is third-quarter revenue against guidance of $2.160 billion to $2.164 billion. Management has also highlighted a significant third-quarter expense ramp. Keep an eye on whether bookings momentum holds up as 2027 approaches.

Contact [email protected] for any questions or corrections.

Vandita Jadeja

Vandita Jadeja is a financial publisher with over a decade of experience writing about financial topics, including investment, savings, retirement, insurance and banking. Vandita is a Chartered Accountant who loves to debunk financial concepts for readers.

Her work has appeared on sites that include The Motley Fool, InvestorPlace, and Benzinga. She covers investing and focuses on stock picks and price prediction for 24/7 Wall St.

When not looking for the next stock investment opportunity, she can be found traveling, reading, chasing sunsets and enjoying her iced latte.

All articles →