Analysts Turn Bullish on Palantir’s Stock Following Difficult Start To 2026

Palantir Technologies stock (PLTR) has had a difficult start to 2026, falling 19.35% YTD. PLTR bulls may feel buoyed however by a wave of analyst upgrades across Wall Street, marking a significant shift in sentiment toward the data analytics firm. The recent valuation compression, which saw the company's trading multiple fall substantially through the first weeks of 2026, has transformed previously skeptical analysts into believers, with at least three major firms flipping their ratings to bullish in recent weeks.

Mizuho Securities led the charge yesterday, upgrading Palantir from Neutral to Outperform while maintaining a $195 price target. The firm pointed to what it described as spectacular growth characteristics that stand apart from the broader software sector, citing the company's ability to deliver revenue acceleration and margin expansion simultaneously at scale.

The analyst noted that the sharp valuation de-rating has created an attractive entry point, with the risk/reward profile now tilted favorably despite the stock's premium positioning in the market.

The upgrade follows a string of similarly optimistic calls from other research houses.

Freedom Capital moved from Sell to Buy with a $170 price target, highlighting Palantir's fourth-quarter results that materially exceeded both management guidance and analyst estimates. The firm emphasized accelerating growth in the U.S. commercial and government segments, with management's upbeat outlook for the first quarter and full-year 2026 signaling confidence in durable, structural demand for artificial intelligence infrastructure rather than cyclical momentum. Freedom Capital dismissed concerns about emerging AI agents as a threat to Palantir's long-term business model, characterizing the recent pullback as unjustified given the underlying strength of the company's Artificial Intelligence Platform.

Daiwa Securities also joined the bullish camp, upgrading to Buy from Neutral with a $180 price target, down from a previous $200. The firm highlighted Palantir's robust fourth-quarter performance, which saw revenue surge 70% year-over-year while operating income expanded roughly 2.1-fold. Daiwa emphasized that the U.S. business continues to drive the company's momentum and expressed conviction that sharp growth will persist and potentially accelerate from current levels.

The convergence of upgrades comes amid a broader reassessment of Palantir's valuation following the stock's significant pullback from recent highs. Markets have grappled with concerns about stretched valuations across the software sector, but analysts now argue that Palantir's fundamental performance justifies a premium multiple. The company's ability to maintain hypergrowth while expanding margins has emerged as a key differentiator, particularly as enterprise adoption of AI platforms accelerates and government modernization budgets expand.

Revenue growth forecasts for 2026 and 2027 are being revised upward across the analyst community, reflecting confidence in the durability of Palantir's commercial traction. The company's free cash flow trajectory has also drawn attention, with some firms projecting significant expansion in cash generation over the next 12 to 24 months. This financial strength provides Palantir with flexibility to invest in product development and sales infrastructure while maintaining profitability, a combination that remains relatively rare among high-growth software companies.

The recent analyst activity suggests that Wall Street's view on Palantir is undergoing a meaningful transition, with the valuation reset providing a more palatable entry point for firms that previously sat on the sidelines. As the stock continues to consolidate following its year-to-date decline, the growing chorus of bullish voices may signal that sentiment is beginning to stabilize, potentially setting the stage for renewed upward momentum if the company continues to deliver on its growth promises.