Raymond James Reiterates Market Perform on Palantir

Raymond James analyst Brian Gesuale reiterated a Market Perform rating on Palantir (NASDAQ: PLTR).

“Model: We are raising our 2026 revenue estimate to $7.85B from $7.41B, placing us ~$190M above the high end of guidance ($7.650–7.662B).

We are raising 2026 Total Government to $3.80B from $3.42B, reflecting the 1Q beat, the commercial-to-government program transition that masked underlying U.S.

Commercial growth, accelerating Maven/ShipOS usage, and a broader factory-to-foxhole opportunity across C2, readiness, sustainment, shipbuilding, munitions, USDA/civil, and defense industrial base workflows.

Our 2027 model assumes total growth of 48% to $11.6B, with Commercial/Government growth of 55%/40%, embedding sequential deceleration but preserving the view that PLTR can sustain premium growth as U.S.

Commercial expands and U.S. Government increasingly behaves like a second hypergrowth engine. We are raising 2026 adj.

EBIT to $4.72B from $4.24B, reflecting a 60.2% margin versus 50.4% in 2025, and adj. FCF to ~$4.40B from ~$4.18B.

While we are baking in expected hiring/product investment and an SBC ramp toward management’s full-year framework, revenue growth continues to scale faster than deployment capacity/headcount, with AI FDE, customer builders, and partner leverage improving throughput/employee.

We view the 1Q margin beat as evidence that PLTR’s delivery model is becoming more productized. We are raising 2027 adj. EBIT to $7.00B from $5.88B, implying a 60.5% margin, and FCF to $6.83B.”

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