Analysts Upgrade Palantir as AI Partnerships Drive Stock Recovery

Shares of Palantir Technologies Inc. rallied over 17% across five trading sessions in early July 2026, rebounding from a 30% year-to-date decline. The surge followed the announcement of a new AI partnership with Nvidia Corporation targeting government and security-sensitive customers, as well as the securing of a major contract with the United States Army.

Financial analysts have issued increasingly bullish outlooks. D.A. Davidson upgraded the stock to Buy on July 2, raising the price target to $175. Analyst Gil Luria highlighted Palantir's AI orchestration layer as a critical advantage that prevents reliance on a single model provider. Similarly, Bank of America analyst Mariana Perez Mora set an aggressive one-year price target of $255. Wolfe Research initiated coverage on June 16 with a Peer Perform rating, though analyst Alex Zukin described the company's enterprise AI portfolio as best-in-class.

These valuations follow strong financial performance. Palantir reported Q1 FY2026 revenue of $1.63 billion, an 84.7% year-over-year increase, and subsequently raised its full-year 2026 revenue guidance to between $7.650 billion and $7.662 billion. Wolfe Research further noted a net revenue retention of 150%.