Palantir (PLTR) Slides 20%, but Analyst Upgrade Signals Fresh Optimism

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the 10 Trending AI Stocks According to Analysts. After three years of triple-digit gains, Palantir stock has retreated more than 20% since the start of the year. Nevertheless, Daiwa has upgraded the stock post earnings, citing artificial intelligence-driven growth momentum amid bigger contracts. On February 10, Daiwa Securities analyst Shigemichi Yoshizu upgraded the stock to “Buy” from Neutral.

For the full-year 2026, the company said that it expects revenue of almost $7.2 billion, up about 61%.

“The robust showing continued to be driven by the US business which saw US commercial revenue surge 137%, accelerating 16 points vs. 3Q.”

“This owed to an increase in long-term commitment contracts following the proof-of-concept stage, as customers are now implementing AI on a companywide basis using the firm’s artificial intelligence platform (AIP). As a result, growth in the customer base has moderated, but contracts are becoming larger thanks to greater usage by existing customers.”

The firm further noted how Palantir has been prioritizing the deeper integration of its platform by existing customers instead of aggressively pursuing new customer acquisitions. Consequently, it has been enjoying an increase in long-term commitment contracts.

“ARPU (average revenue per user) has continued to grow, led by the U.S. commercial business. In the short term, we see a high likelihood of the firm continuing to use this business model, premised on growth driven by existing customers. As such, we think the firm’s current earnings projections look achievable/reasonable.”

Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.

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Disclosure: None. This article is originally published at Insider Monkey.