UBS has a message for Palantir investors

Palantir banal has been 1 of the market’s biggest winners, rising implicit 500% successful the past 5 years and 73% successful the past 12 months alone.

But the banal is present down 13% truthful acold successful 2026. Against that backdrop, UBS is making a bold telephone connected Palantir, doubling down connected the company’s upside adjacent aft its monolithic run.

For those unfamiliar with Palantir, the institution provides information analytics and AI bundle to governments and enterprises. Palantir makes wealth done bundle contracts and ongoing usage, with higher-margin gross coming from its halfway platforms similar Gotham, Foundry, and AIP arsenic customers standard deployments implicit time.

• Market cap: $349.9 billion

• Enterprise value: $340.3 billion

• Share price: $147

• Analysts’ avg people price: $187 (27% implied upside)

• 2-Year expected yearly EPS growth: 57.5%

• Forward P/E ratio: 110.6x
  Source: TIKR.com

UBS raised its terms people connected Palantir from $180 to $200 and maintained a bargain rating. This terms people implies astir 36% upside for the banal from existent levels.

UBS has antecedently called Palantir a “premier maturation story.” The upgrade follows different beardown quarter, with Palantir reporting $0.25 successful EPS versus $0.23 expected and $1.41 cardinal successful revenue, up 70% twelvemonth implicit year.

Firms similar UBS inactive spot Palantir's bull lawsuit arsenic intact, but expectations are present precocious capable that execution needs to enactment beardown to enactment further upside.

Palantir’s concern lawsuit changed erstwhile absorption guided for Q1 gross of $1.532 cardinal to $1.536 billion and full-year 2026 gross of $7.18 cardinal to $7.20 billion. This implies Palantir volition spot 61% gross maturation for full-year 2026.

This guidance was good up of expectations, with anterior quarterly gross statement of astir $1.31 billion.

A institution guiding to astir 60% gross growth for 2026 is saying pilot-to-production conversion is already happening astatine scale.

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Palantir’s fourth-quarter 2025 results reinforced that message. The institution posted a “rule of 40” people of 127%, an all-time high, showing profitability is accelerating alongside revenue.

Another large crushed investors are giving Palantir much recognition is its go-to-market model. Management has progressively positioned AIP bootcamps arsenic a mode to compress endeavor AI income cycles, and that has go cardinal to the 2026 story. The process tin chopped the income rhythm from months to days.