Palantir Technologies Inc. (NASDAQ:PLTR) is regaining Wall Street’s confidence as rising geopolitical tensions and stronger earnings revive enthusiasm for the stock after months of declines.
Defense Exposure Fuels Stock Rebound
Investors pushed Palantir shares higher in recent sessions as the company’s deep ties to U.S. government and military contracts drew renewed attention amid escalating conflict involving Iran.
The stock rose 5.8% Monday, extending a four-session gain to 13%, before slipping in premarket trading Tuesday during a broader market selloff.
Palantir generates about half of its revenue from U.S. government and defense work.
Tim Pagliara of Capwealth Advisors told Bloomberg that the stock’s recent move reflects an emotional reaction to Palantir’s positioning within the government and military, adding that the conflict reinforces the company’s entrenched role and competitive moat.
Analysts Turn More Bullish
After a steep drop that sent shares down 38% from a November high to a February low, analysts began upgrading the stock.
Rosenblatt Securities also reiterated a Buy rating and lifted its forecast to $200 from $150, citing global instability and demand for wartime solutions.
Analyst John McPeake noted that the U.S. government has directed agencies to phase out Anthropic’s large language models after the company imposed restrictions on their use in fully autonomous weapons systems.
Rosenblatt added that the escalating Middle East conflict could underscore the advantages of Palantir’s integrated platform over standalone large language models.
Strong Earnings And AI Positioning Support Growth
Palantir’s latest earnings report beat Wall Street expectations and included a stronger-than-anticipated revenue forecast.
The company reported fourth-quarter revenue of $1.41 billion, up 70% year-over-year, led by a 137% jump in U.S. Commercial revenue.
Palantir also closed 61 deals worth more than $10 million during the quarter, underscoring growing demand tied to AI adoption.
For 2026, the company projected full-year revenue of $7.18 billion to $7.20 billion, well above analyst estimates of $6.21 billion and significantly higher than its prior internal trajectory.
Dave Mazza of Roundhill Investments told Bloomberg that Palantir has demonstrated durable growth in a challenging environment and that recent upgrades reflect confidence in its fundamentals.
Bloomberg Intelligence’s Mandeep Singh noted that heightened Middle East tensions may drive new customers to Palantir’s software, particularly companies seeking to assess supply chain risk.
Palantir stock gained 74% over the last 12 months, topping the Nasdaq 100’s 20% return.
PLTR Price Action: Palantir Technologies shares were down 0.17% at $144.93 at the time of publication on Tuesday, according to Benzinga Pro data.
