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Palantir Rallies on Defense Tailwinds as Valuation Questions Linger

The rebound collides with a lofty multiple that keeps expectations high.

Overview

  • Shares gained about 15% over the past week even as many software names struggled, reflecting renewed interest tied to defense demand.
  • Market commentary notes the stock still trades roughly 27% below its 52-week high near $207, with recent pricing around $152 and a double-digit year-to-date decline.
  • Fourth-quarter 2025 results topped estimates with $1.406 billion in revenue, up 70% year over year, and adjusted EPS of $0.25 versus $0.18 expected.
  • U.S. commercial revenue surged 137% to $507 million and U.S. government revenue rose 66% to $570 million, driving total U.S. revenue up 93%; the company reported strong free cash flow and profitability.
  • Analysts and market writers highlight a rich forward P/E near 118–125 times, and some suggest geopolitical tensions could translate into more government work, though that remains a projection.