Predicting Palantir Technologies' Position in the Next 12 Months
Beyond a shadow of a doubt, 2025 has been an outstanding year for Palantir Technologies (PLTR -1.56%), delighting its shareholders. As the year winds down, you might be curious where Palantir's stock will stand a year from now.
Let me share my thoughts on that.
Palantir's Performance -- And Why It's So Good
Before diving into where Palantir is headed, let's take a look at what its stock has achieved. Over the period between Dec. 16, 2024 and Dec. 17, 2025, Palantir's stock saw an impressive increase of more than 315%. This puts it among the top-performing stocks over that period, outperforming other big winners like Nvidia (170%), Broadcom (121%), and Netflix (95%).
The artificial intelligence (AI) boom is largely responsible for Palantir's stock market success. The company is a leader in the development of advanced AI systems for both governmental and commercial organizations.
A glance at Palantir's financials will show why investors are excited. During the company's latest quarter (the three months ending Sept. 30, 2025), revenue skyrocketed by 30% year over year to $726 million. U.S. growth was even more impressive, with total revenue jumping 44% from the previous year and U.S. commercial revenue growing 54% compared to the year before.
However, the company's results tell only half the story. Palantir's management continues to sing the praises of the overwhelming interest and demand for its platform.
In his most recent letter to shareholders, Palantir's CEO, Alex Karp, left no room for doubt, declaring: "The growth of our business is accelerating, and our financial performance is surpassing expectations as we fulfill an unwavering demand for the most advanced artificial intelligence technologies from our U.S. government and commercial customers."
Where Palantir Might Go in a Year
Palantir had an exceptional 2025, and its management remains enthusiastic about the future. But can the company maintain its success for another year? Could Palantir post another three-bagger performance over the next 12 months?
To answer that question, a closer look at Palantir's operations is necessary.
Many investors view Palantir as a company heavily tied to the defense sector. The company maintains crucial partnerships with defense agencies in the U.S. and other NATO-aligned countries. Moreover, Palantir continues to secure significant contracts, such as a recent $37 million contract with the U.S. Special Operations Command and a $100 million contract with the U.S. Army Research Laboratory.
One could argue that, with a market capitalization of $167 billion, Palantir is already the largest defense contractor, having surpassed companies like RTX ($157 billion), Honeywell ($153 billion), and Lockheed Martin ($114 billion). However, it's worth noting that Palantir's growth is driven more by the private sector than the public sector.
Approximately half of the company's revenue now comes from commercial clients, and as previously mentioned, U.S. commercial revenue outpaced governmental revenue. If Palantir stock is to reproduce its 2025 performance in the following year, robust commercial growth is crucial to its success.
Is Palantir a Buy Now?
It's apparent that Palantir has momentum. Its customer base is expanding, and management is confident in both the company's product and its appeal to customers.
It's unlikely that Palantir's stock will triple over the next year, bringing the company's market cap to a staggering $450 billion. However, I think Palantir stock will have a strong year of growth ahead.
Investors should keep a long-term perspective on Palantir. While the stock may not repeat its breathtaking performance next year, investing in Palantir's stock provides an excellent opportunity to profit from the growth of the AI application market over the long term.
Given Palantir's strong performance in 2025 and the continued interest in its advanced AI systems, there's a possibility for further financial growth. Investors might consider considering Palantir as an opportunity to capitalize on the long-term growth of the AI application market, even though a triple-digit increase like in 2025 might be unlikely in the next year. The company's diversification into the commercial sector, alongside its defense sector partnerships, could contribute to its continued success in finance and investing.
