Why Palantir Stock (PLTR) Is Roaring Back as Geopolitical Tensions Rise

FomoAnxiety · 2026-03-03T17:29:47+00:00

Palantir Technologies has gained traction on Wall Street due to rising geopolitical tensions and strong government contract revenues. Despite past valuation concerns, improved analyst sentiment and a positive earnings outlook suggest potential growth. Analysts have a Moderate Buy rating with a significant upside target.

FomoAnxiety

2026-03-03 17:29:47

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Wall Street has become more positive on Palantir Technologies PLTR -0.19% ▼ as rising geopolitical tensions put defense-related companies back in focus. In fact, about half of the company’s revenue comes from government contracts, which has led to a 13% rally over the past four days. While some analysts say that the rally is partly emotional, they also admit that the situation reinforces Palantir’s strong position within the defense system. At the same time, analyst sentiment has clearly improved.

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Earlier this year, the stock had fallen 38% from its November high to its February low due to valuation concerns and criticism from investor Michael Burry. There were also ongoing questions about Palantir’s work with agencies such as ICE and the Department of Homeland Security. However, the company’s latest earnings report beat expectations and included a stronger-than-expected revenue outlook. Palantir is now projected to grow revenue by about 73% over the next 12 months, one of the fastest rates in the S&P 500 SPY -1.30% ▼ . As a result, many analysts view the company as a major beneficiary of both AI growth and rising defense spending.

Nevertheless, valuation remains the biggest concern. For context, Palantir trades at roughly 104 times expected earnings and 45 times expected sales, making it one of the most expensive stocks in the S&P 500. That said, those multiples are much lower than previous peaks, which makes the stock appear more reasonable compared to where it traded before. Moreover, on top of military demand, some analysts believe that global tensions could increase commercial demand for Palantir’s software, especially for companies looking to manage supply chain risks tied to the Middle East.

Is PLTR Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on PLTR stock based on 14 Buys, four Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average PLTR price target of $191.76 per share implies 33.5% upside potential.

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