Palantir Technologies (NASDAQ:PLTR) shares are trading higher after beating fourth-quarter (Q4) analyst estimates and providing stronger-than-expected guidance.
Wedbush analyst Dan Ives breaks down the key highlights and why he remains bullish amid the share surge.
Wedbush Sees More Growth Ahead
Ives, who maintains an Outperform rating on Palantir with a $230 price target, considers Q4 another “drop the mic quarter.” Financials beat estimates while guidance came in ahead of analyst expectations.
"Palantir is helping lead the AI Revolution into the use case phase as its AIP product moat is unmatched in our view," Ives said.
Ives said Palantir is "set up for another robust year," once again referring to the software company as the "Messi of AI." Messi refers to Lionel Messi, one of the greatest soccer players of all time.
The analyst said Palantir's US Commercial segment remains a key focus for bulls, with 137% year-over-year growth in the fourth quarter. Ives said Palantir is seeing strong enterprise demand for AIP with new AIP tools helping customers.
Ives also highlighted the company's US Federal revenue, which was up 66% year-over-year in the fourth quarter. The analyst said Palantir is becoming "the default builder platform for the Department of War."
Going forward, Ives sees AIP helping power "full steam ahead" mode for Palantir.
The analyst said AIP is a significant driver to help Palantir's revenue and also a key to expanding margins and cash flow in the coming years.
"Palantir remains one of our top tech names to own in 2026."
Ives said 2026 is another chance for the company to show traction across its federal and commercial segments.
Price Action: Palantir stock is up 4.0% to $153.71 on Tuesday versus a 52-week trading range of $66.12 to $207.52. Palantir shares are up 84% over the last 52 weeks.
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