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Palantir Kicks Off 2026 With AIP-Fueled Growth, $448 Million Navy Deal and Fresh BofA Endorsement

Rapid adoption keeps the bull case intact despite valuation worries.

Overview

  • BofA Securities reiterated a Buy rating and a $255 price target after investor meetings in South Korea with Palantir executives.
  • Palantir secured a two‑year, $448 million U.S. Navy ShipOS award to deploy Foundry and AIP across the Maritime Industrial Base.
  • The company reported accelerating 2025 results, including Q3 revenue up 63% year over year, U.S. commercial revenue up 121% to $397 million, RPO of about $2.6 billion, and net dollar retention of 134%.
  • Shares rose roughly 135% in 2025, reflecting confidence in AIP-driven commercial traction and backlog growth.
  • Debate over a premium valuation persists, with Jim Cramer citing roughly 175 times this year’s earnings estimates, while proposals for much larger U.S. defense budgets are viewed as a potential tailwind rather than a confirmed driver.