Palantir Stock Could Make a Dramatic Move Over the Next Year (Hint: It Implies a Big Move)

Palantir Stock Could Make a Dramatic Move Over the Next Year (Hint: It Implies a Big Move)

Harsh Chauhan, The Motley Fool

Mon, September 7, 2026 at 4:43 PM GMT+3 4 min read

• PLTR -4.49%
• NVDA +0.84%

Palantir Technologies (NASDAQ: PLTR) has made a parabolic move on the stock market lately, with shares of the company jumping 39% since Aug. 3, the day when it released its Q2 earnings report.

This incredible jump in Palantir stock has been fueled by the company's stronger-than-expected Q2 numbers and an improved full-year guidance. The good news for investors is that the recent rally in this artificial intelligence (AI) software specialist is poised to continue over the coming year.

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Let's see why that's likely to be the case.

Palantir's accelerating growth trajectory is sustainable

Palantir's Q2 revenue surged 93% year over year to $1.94 billion, well above the 48% revenue growth it reported in the same quarter last year. What's more, Palantir's non-GAAP earnings per share (EPS) jumped at a stronger pace of 156% year over year to $0.41.

The company's terrific results can be attributed to the strong demand for its Artificial Intelligence Platform (AIP), which enables customers to integrate generative AI models with their proprietary data. Palantir notes that its total contract value (TCV) surged 49% year over year in Q2 to $3.37 billion, significantly exceeding the company's top line.

The surge in Palantir's TCV strengthened its revenue pipeline. This is evident from the company's remaining deal value (RDV) of $13.1 billion, an 83% jump from the year-ago period. RDV is the total value of contracts that Palantir is yet to fulfill at the end of a quarter. The size of this metric clearly tells us that Palantir's improving growth trajectory is sustainable.

Palantir's robust revenue pipeline is why it has raised its full-year guidance. The company expects full-year revenue of just over $8.15 billion, implying an 82% increase over last year. It is worth noting that Palantir was originally expecting 2026 revenue of almost $7.19 billion when the year began.

I won't be surprised to see Palantir boosting its guidance in the future as well. That's because the company added 200 new customers in Q2 compared to the year-ago period. The new customers Palantir wins tend to expand adoption of its AI software offerings. This is evident from the company's net dollar retention rate, which compares the trailing twelve-month revenue from customers at the end of a quarter to the trailing twelve-month revenue from the same customers in the year-ago quarter.

Palantir's net dollar retention was 157% in Q2, up seven percentage points from the year-ago period. The stronger spending by existing customers, along with the addition of new customers, should pave the way for a bigger jump in Palantir's earnings over the coming year, paving the way for more upside in this AI stock.

Here's why the stock could make a big move

Palantir's 12-month median price target of $205 suggests potential upside of 17%. However, it can clock bigger gains given its ability to outperform expectations.

Analysts are expecting Palantir's earnings to increase by 114% in 2026 to $1.61 per share, followed by a smaller 44% jump in 2027. However, analysts have been increasing their EPS estimates.

Also, Palantir's healthy revenue pipeline and potentially stronger spending by existing customers should ensure that it grows at a significantly faster pace than the 44% growth analysts are projecting in 2027. Assuming Palantir doubles its earnings once again in 2027 and crushes Wall Street expectations, the stock could approach the Street-high price target of $255, implying a 46% gain in a year.

However, the company's improving growth rate could boost investor confidence in the stock, helping Palantir make a bigger move and surge past the Street-high price target.

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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.

Palantir Stock Could Make a Dramatic Move Over the Next Year (Hint: It Implies a Big Move) was originally published by The Motley Fool