Palantir (PLTR) Stock Surges 15% Amid Defense Demand Fueled by Iran Conflict

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TLDR

  • Palantir’s stock climbed 15% over the week, ending Friday at $157.16, marking its strongest weekly performance since August.
  • Investor interest in defense technology stocks surged following the U.S. strike on Iran, with Palantir identified as a direct beneficiary.
  • Approximately 60% of Palantir’s revenue comes from government contracts, and its tools were reportedly deployed in operations related to Iran.
  • Rosenblatt analysts increased their price target to $200, while Piper Sandler maintains a $230 target.
  • The Pentagon’s blacklisting of Anthropic sparked concerns regarding Palantir’s AI collaborations, though analysts suggest viable alternatives are available.

Palantir ($PLTR) experienced a remarkable week amidst broader market difficulties. The stock concluded Friday at $157.16, marking a daily increase of approximately 2.9% and a weekly gain of 15%—its most robust weekly showing since August.

PLTR Stock Card

Conversely, the wider market trended downwards. The Nasdaq declined 1.2% for the week, influenced by Apple, Google, and Micron. Oil prices saw a sharp rise, and a February jobs report indicated an unexpected reduction in U.S. employment.

Palantir advanced as investors concentrated on the U.S. strike against Iran. Government agreements constitute about 60% of Palantir’s income, and the firm has been expanding its engagement with military and intelligence bodies.

Its Maven Smart System offers AI functionalities, such as weapons targeting, to the U.S. military, and these tools were reportedly employed during the Iran-related operations. Last year, Palantir secured a $10 billion contract with the Army.

President Trump has not signaled an imminent end to the conflict, which encouraged defense-oriented investors to continue purchasing Palantir shares throughout the week.

Analyst Targets Move Higher

Rosenblatt maintained its buy rating for PLTR and elevated its price target from $150 to $200. The firm stated that the Middle East conflict “augurs well” for Palantir’s government project pipeline, suggesting that additional Army-like contracts might materialize.

Piper Sandler reaffirmed an overweight rating and kept its $230 price target. Citigroup holds a $260 target with a buy rating. The collective analyst sentiment, as monitored by MarketBeat, is a “Moderate Buy” with an average price target of $192.68.

Earlier in the week, UBS upgraded PLTR from neutral to buy, although it slightly reduced its target to $150.

Palantir’s latest quarterly earnings, announced on February 2, surpassed projections. The company reported earnings per share (EPS) of $0.25, exceeding the $0.23 consensus, and revenues of $1.41 billion, marking a 70% year-over-year increase. The net margin reached 36.31%.

Anthropic Blacklisting Raises Questions

A notable concern this week was the Pentagon’s choice to bar Anthropic as a government vendor. The parties could not agree on the appropriate use of AI models concerning autonomous weaponry and domestic surveillance.

Palantir, Amazon Web Services, and Anthropic had collaborated in November 2024 to introduce Claude models to defense and intelligence sectors. Anthropic had also secured a $200 million contract with the Defense Department and was the initial AI laboratory to integrate models onto classified networks.

Palantir has not yet publicly commented on its intentions regarding the Anthropic partnership. Rosenblatt indicated the availability of “sufficient alternatives” to Claude models. Piper Sandler adopted a more reserved stance, stating that replacing Anthropic would consume time that could otherwise be dedicated to growth prospects.

Anthropic CEO Dario Amodei declared in a Thursday blog post that he feels “compelled” to contest the blacklisting legally.

The stock also benefited from a wider recovery in the software sector. The iShares Expanded Tech-Software Sector ETF jumped almost 8% for the week. CrowdStrike, ServiceNow, and AppLovin all saw gains exceeding 15%.

The company’s 50-day moving average is $156.11. Its market capitalization is roughly $375.9 billion, with a price-to-earnings (P/E) ratio of 249.