Shares of Palantir Technologies (PLTR) are under pressure, dropping more than 38% from its 52-week high of $207.52. The decline reflects valuation concerns. Palantir’s stock had been trading at a significant premium compared to its peers and large tech giants, leaving little room for disappointment. As concerns about competition and potential disruption surfaced, sentiment shifted, and the stock retreated sharply from its peak.
Despite the pullback, demand for Palantir’s Artificial Intelligence Platform (AIP) remains solid. The company continues to add new customers, and existing clients are expanding their spending. That combination of customer growth and higher average revenue from its large customers supports the case for continued revenue momentum into 2026.
Against this background, should investors buy PLTR stock or still stay away?
Palantir has entered 2026 with solid revenue momentum and expanding operating leverage. Over the last several quarters, the company’s top line has accelerated steadily. Revenue rose 36% year-over-year (YoY) in the fourth quarter of 2024, and growth continued to build throughout 2025, reaching approximately 70% YoY in the fourth quarter of 2025. This trend points to consistent, broad-based demand across both its government and commercial businesses.
The outlook for 2026 remains solid, led primarily by the significant demand in the U.S. market. Demand for the company’s AIP continues to scale, driven by higher adoption across federal agencies and enterprises. PLTR’s U.S. business revenue surpassed $1 billion in a single quarter for the first time in Q4. Within that segment, U.S. commercial revenue rose 137% YoY and 28% sequentially, while U.S. government revenue increased 66% YoY and 17% sequentially. These growth rates point to strong pipeline conversion and expanding share.
Contract activity further supports its investment case. Palantir reported its highest total contract value quarter on record at $4.3 billion in Q4, signaling solid demand entering 2026. Customer count expanded 34% YoY and 5% sequentially to 954 customers, reflecting both new client acquisition and broader platform penetration. Revenue concentration among large accounts is also trending higher, with trailing 12-month revenue from the top 20 customers rising 45% YoY to an average of $94 million per customer.
