Baird upgraded Palantir to ‘Outperform’ from ‘Neutral’ while keeping its $200 price target unchanged.
- Baird analysts noted that Palantir’s earnings growth has accelerated for 10 consecutive quarters, with the company’s commercial segment driving revenue growth.
- Explaining the reasons behind its PLTR upgrade, Baird stated that Palantir’s free cash flow inflection and its “attractive” free cash flow multiple on 2027 were the “upside scenarios” for the stock.
- The firm added that Palantir’s guidance for the first quarter of 2026 points to further acceleration in its growth.
Palantir Technologies Inc.’s (PLTR) blowout fourth-quarter results have earned the company’s stock an upgrade from analysts at Baird.
According to TheFly, Baird upgraded Palantir to ‘Outperform’ from ‘Neutral’ while keeping its $200 price target unchanged. This implies an upside of more than 35% from the closing price of PLTR on Monday.
Palantir shares were up nearly 11% in Tuesday’s pre-market trade, while the stock was the top trending ticker on the platform at the time of writing.
Here’s What Baird Analysts Said
Baird analysts noted that Palantir’s earnings growth has accelerated for 10 consecutive quarters, with the company’s commercial segment driving revenue growth.
Explaining the reasons behind its PLTR upgrade, Baird stated that Palantir’s free cash flow inflection and its “attractive” free cash flow multiple on 2027 were the “upside scenarios” for the stock.
The firm added that Palantir’s guidance for the first quarter (Q1) of 2026 points to further acceleration in its growth. The company’s Q1 and full-year 2026 revenue guidance were both ahead of Wall Street’s consensus estimate, according to TheFly.
Baird stated that Palantir “remains one of the clearest AI winners.”
Palantir’s Q4 At A Glance
Palantir reported earnings per share (EPS) of $0.25 on revenue of $1.41 billion in Q4, beating Wall Street estimates of an EPS of $0.23 on revenue of $1.34 billion, according to Stocktwits data.
“Palantir is alone in choosing to exclusively focus on scaling the operational leverage made possible by the rapid advancements of AI models, a trend that we first called ‘commodity cognition’ well before others started repeating it,” said the company’s co-founder and CEO, Alex Karp.
The company forecast revenue in the range of $1.532 billion to $1.536 billion, ahead of a consensus at $1.33 billion. For the full year 2026, Palantir expects revenue of $7.182 billion to $7.198 billion, exceeding an estimated $6.28 billion.
Palantir’s commercial revenue in Q4 soared 137% year-on-year, while government revenue grew 66% YoY. During the quarter, the company closed $4.26 billion of total contract value.
How Stocktwits Users Reacted
Retail sentiment on Stocktwits around Palantir was in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels.
One bullish user said that the pre-earnings result move in Palantir was a “no brainer” and that the stock was “oversold.”
Another user recommended that investors be patient and not “overtrade the noise.”
PLTR stock is down 17% year-to-date, but up 79% over the past 12 months.
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