Analysts set a 25% upside target for PLTR after Q1 2026 free cash flow jumped to $925 million and Rule of 40 hit 145%.
Palantir Technologies (NASDAQ:PLTR) received a $161.53 price target, reflecting 25% upside from its $129.30 close, after reporting a 204% surge in free cash flow to $925 million in Q1 2026. The company’s Rule of 40 metric reached 145%, underscoring strong growth and profitability.
Shares have rebounded 20.54% in the past week to $129.30, though they remain down 27.26% year-to-date after peaking at $207.52. Q1 2026 revenue grew 84.7% year-over-year to $1.632 billion, with U.S. commercial revenue up 133% to $595 million. Adjusted EPS beat estimates at $0.33 versus $0.28.
Despite the bullish outlook, PLTR trades at a trailing P/E of 145 and a price-to-sales ratio of 59, which some analysts argue is inflated by AI hype. The stock’s volatility persists amid mixed sentiment on its valuation.