Palantir Stock Surges 151% in a Year: Is the Upside Already Priced In?

Palantir Technologies Inc. PLTR has surged 150.5% over the past year, significantly outperforming the 4% rise of the industry. Heavyweight tech peers like NVIDIA NVDA and Oracle ORCL have also delivered solid rallies, but at a more modest pace. NVIDIA, a leading force in AI and graphics processing technology, has recorded a 34% rise, while Oracle, renowned for its enterprise software and cloud infrastructure services, has gained 16% over the same period.

In this environment, Palantir’s relative strength raises an important question: Does PLTR still present a compelling investment opportunity, even after such a strong upward move? Investors seeking diversified exposure to AI and data analytics may find value here, particularly when compared with underperformers such as NVIDIA and Oracle.

Let’s see if PLTR still offers a buying opportunity even after such a continuous rise.

Palantir's Role in the Evolving AI Economy

We are in the midst of an AI boom characterized by rapid advancements and a proliferation of AI models. By 2026, the oversaturation of AI solutions is expected to become even more evident. Palantir has recognized this shift and strategically positioned itself to capitalize on the changing dynamics of the AI economy.

While many companies are engaged in an arms race to develop slightly improved AI models, Palantir differentiates itself by focusing on seamless AI integration into enterprise operations. The company refers to this approach as quantified exceptionalism, delivering transformative, measurable outcomes such as time savings, cost reductions and productivity enhancements.

At the core of Palantir’s strategy is its Artificial Intelligence Platform, which enables businesses to structure and organize their data, whether financial, supply chain, operational or HR-related, so that AI can process and execute tasks more effectively. By leveraging an ontology-driven approach, Palantir creates digital representations of entire enterprises, allowing AI to interact seamlessly with business operations. Unlike companies that contribute to the oversupply of AI models, Palantir is actively shaping the demand side of the AI economy, positioning itself as a key player in the adoption of enterprise AI.

Strong Financial Position and Growth Trajectory

Palantir’s financial health further reinforces its investment appeal. As of Sept. 30, 2025, the company held $6.4 billion in cash and equivalents, with zero debt, providing ample liquidity to invest in growth initiatives.

Moreover, Palantir’s recent financial performance underscores its strength. In the third quarter of 2025, revenues surged 63% year over year, with U.S. revenues increasing 77% year over year and U.S. commercial business experiencing 121% growth. The company closed 204 deals of at least $1 million, 91 deals of at least $5 million and 53 deals of at least $10 million in the quarter.

The company achieved its highest-ever adjusted operating margin of 51%, reflecting the scalability of its software business model and disciplined cost control. GAAP operating income reached $393 million, while GAAP net income came in at $476 million, translating to GAAP EPS of 18 cents and adjusted EPS of 21 cents, which increased 110% year over year.

Upbeat Earnings Projections

The Zacks Consensus Estimate for Palantir’s fourth-quarter 2025 earnings stands at 23 cents per share, indicating 64.3% year-over-year growth. For 2025 and 2026, earnings are projected to rise 78% and 43%, respectively, compared to prior-year figures.

Sales are also expected to see robust growth, increasing 62.8% in the fourth quarter of 2025, with full-year sales projected to rise 54% in 2025 and 41% in 2026.

PLTR is a Buy

Palantir clearly stands out as one of the strongest pure-play enterprise AI platforms in the current market. Its focus on operationalizing AI, rather than simply building models, gives it a durable competitive edge that is difficult for peers to replicate. With accelerating enterprise adoption, expanding commercial traction, and improving profitability, the company is positioned to sustain long-term value creation. Even after its sharp run, the stock continues to offer an attractive risk-reward profile for investors seeking exposure to real-world AI deployment. At current levels, PLTR remains a compelling Buy for investors focused on structural AI growth and enterprise software leadership.

PLTR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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