Investors Love Palantir’s Earnings. The Stock Is Soaring.

Palantir is bouncing.

Shares of the AI-powered software company were sharply higher early Tuesday, looking set to reverse a slide that has lasted about three months. Palantir’s (PLTR) stock—recently up about 10% premarket to near $163—may today eat into year-to-date losses; the shares finished 2025 at just under $178 apiece.

Last night’s release of an upbeat sales outlook and quarterly financial results—both which were better than Wall Street expected—as well as some braggadocio in a letter from CEO Alex Karp, is powering the shares higher this morning. Those numbers may also help reassure some investors that software stocks aren’t necessarily all doomed to be devoured by AI. (That’s not a unanimous determination, but it’s undoubtedly a concern.)

“Palantir’s momentum increasingly stands out in a software market where accelerating growth stories are rare,” Citi analysts wrote. They have a $260 price target on the stock, suggesting nearly 80% upside from last night’s close under $150.

That’s also well above the Street average, currently calculated by Visible Alpha as just over $189. That price, too, suggests quite a bit of room to climb, though the stock is so far eating into that this morning.

The good news hasn’t entirely dispelled the notion that the shares may be overvalued. Jefferies analysts, who have a bearish rating on the stock, maintained a $70 price target that suggests a more-than-50% fall from Monday’s close. That take, the bank noted, was less about performance than price:

“We view execution as strong,” the analysts wrote, but there are “more attractive stocks in our coverage.”

This article has been updated since it was first published to reflect the start of trading.