PLTR Stock Gets Price Target Hikes After ‘Another Top-Line Blowout,’ But Jefferies Sees Better AI Bets In MSFT, ORCL, SNOW Shares

• While analysts praised Palantir’s continued revenue growth, many expressed caution around the firm’s slower rate of bookings.
• Morgan Stanley praised Palantir’s continued revenue growth as “impressive” but said high expectations and slower bookings weighed on the stock.
• Piper Sandler added that shorter contracts likely explain slower bookings growth and maintained that demand for Palantir’s software still “very much outstrip[s] supply.”

Palantir Technologies (PLTR) shares fell in morning trading on Tuesday, putting the stock on track to hit its lowest level since September, even as analysts raised their price targets following the company’s third-quarter results.

Citi, Morgan Stanley, Piper Sandler and RBC Capital all lifted their targets, but Jefferies kept its target steady at $80 with an ‘Underperform’ rating, according to TheFly. The firm said that while Palantir delivered a "strong" quarter, the debate has shifted from whether customers want Palantir’s software to whether the company can sustain accelerating growth against tougher comparisons. 

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Jefferies said it sees “more compelling” risk and reward elsewhere in Microsoft (MSFT), Oracle (ORCL), and Snowflake (SNOW). According to the firm, they offer strong long-term growth at more attractive valuations.

PLTR stock dropped around 5% in morning trade and was among the top-trending tickers on Stocktwits at the time of writing. 

Palantir Revenue Beats Estimates, Company Raises 2026 Outlook

Palantir reported revenue growth accelerating for the 13th consecutive quarter. Revenue grew 96% year over year in the third quarter (Q3) to $2.31 billion, beating market expectations of $2.17 billion, according to Koyfin.

The company also raised its full-year revenue forecast to $8.53 billion from about $8.15 billion, its third increase this year. It expects fourth-quarter (Q4) revenue of about $2.65 billion.

Citi, which raised its target to $265 from $250 and kept a ‘Buy’ rating, called the results “another top-line blowout,” driven by U.S. commercial and government sales. Morgan Stanley analyst Sanjit Singh called revenue growth for a 13th consecutive quarter “impressive.” 

Slower Bookings Raise Questions About Future Growth

The main concern for Wall Street was bookings, which indicate future business. Total contract value (TCV), which measures the value of deals signed during the quarter, rose 6% year over year to $2.92 billion, down sharply from 49% growth in the second quarter. U.S. commercial TCV increased 11%.

According to Morgan Stanley, PLTR stock’s reaction reflected elevated expectations for U.S. commercial sales and slower bookings growth linked to shorter contracts.

Meanwhile, RBC Capital highlighted remaining deal value grew just 2% from the second quarter, while remaining performance obligations (RPO) were flat sequentially. The firm also noted management’s acknowledgment that contracts tied to Sovereign AI, Palantir’s work with national governments, were shorter than usual.

Piper Sandler said investors will look for evidence in coming quarters that the 11% growth in U.S. commercial bookings “is a fluke of duration and not something structural.” The firm believes the slowdown is related to contract length and said demand for Palantir’s software still “very much outstrip[s] supply.”

Citi also described the quarter as strong “despite a duration headwind to bookings.”

How Is Retail Feeling About PLTR Stock?

On Stocktwits, retail sentiment around PLTR stock flipped to ‘bullish’ from ‘bearish’ over the past day, while chatter increased to ‘extremely high’ from ‘normal’ levels. Platform data showed an over 1,100% increase in message volume over the past 24 hours. 

Some retail traders pushed back against concerns over Palantir's valuation and growth outlook, with some pointing to what they saw as a shift in the criticism of Palantir's business mix. 

If the PLTR stock's decline holds through the regular session, the shares would give up their year-to-date gains.

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