What Is Happening With Palantir Technologies Stock?
Palantir Technologies (PLTR)’s stock skyrocketed 135%, fueled by a revenue surge and soaring profit margins, but behind the headlines lies a story of booming AI adoption, key government deals, and a game-changing Hyundai partnership—yet the market’s valuation debate keeps investors on edge. Let’s dive into what’s really driving the move.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 1202025 | 1202026 | Change | |
|---|---|---|---|
| Stock Price ($) | 71.8 | 168.5 | 134.8% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 2,646.3 | 3,896.2 | 47.2% |
| Net Income Margin (%) | 18.0% | 28.1% | 56.1% |
| P/E Multiple | 338.8 | 365.7 | 7.9% |
| Shares Outstanding (Mil) | 2,250.0 | 2,377.2 | -5.7% |
| Cumulative Contribution | 134.1% |
So what is happening here? The stock surged 135%, driven by a 47% boost in revenue, a 56% jump in net margin, and a modest 7.9% lift in its P/E multiple. Let’s explore the moves behind these numbers.
Here Is Why Palantir Technologies Stock Moved
- Strong Q2/Q3 2025 Earnings: Palantir reported strong Q2 & Q3 2025 earnings with revenue acceleration and beats.
- AI Platform Adoption: Increased adoption of Palantir’s AI platform, particularly in the U.S. commercial segment.
- Major Gov’t Contracts: Secured large contracts with the U.S. Army and expanded defense agreements in 2025.
- High Valuation Concerns: Analyst skepticism due to high valuation (169x forward earnings) raised price target concerns.
- HD Hyundai Deal: New significant software deal with HD Hyundai in South Korea announced around Jan 2026.
Our Current Assesment Of PLTR Stock
Opinion: We currently find PLTR stock attractive but volatile. Why so? Have a look at the full story. Read Buy or Sell PLTR Stock to see what drives our current opinion.
Risk: A simple way to gauge Palantir’s risk is by checking its biggest drops in past crises. During the Covid pandemic, it fell about 22%, which is noticeable but not extreme. The bigger hit came during the inflation shock, where the stock plunged roughly 85% from peak to trough. Even with solid fundamentals and growth potential, these kinds of swings show Palantir is far from immune when the market turns. Risk is real, and sharp selloffs can happen despite any positives.
PLTR stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.