Wolfe Research Resumes Coverage of Palantir at Peer Perform

Wolfe Research analyst Alex Zukin resumed coverage of Palantir Technologies (NASDAQ: PLTR) with a Peer Perform rating (prior: Underperform).

“The Wolfe Byte: We resume coverage of PLTR, with a Peer Perform rating, as we believe AIP, Ontology, and AI FDEs proved the company can turn AI interest into scaled enterprise adoption, but believe valuation reflects much of the improved growth and margin outlook.

Initiate PP.

We resume coverage of PLTR as we think it has the best product market fit of any enterprise software company in the market today.

When we covered this company before, we viewed it as a unique custom-building software machine that had extraordinary alignment of software engineering, sales, and a pricing model for continuous transformational outcomes.

Today, we see PLTR as the most applied enterprise AI software company, with the largest and fastest growth rates in the industry.

While it is not “Too Big To Fail,” for our coverage it is simply “Too Big To Ignore!” The frontier models today have the intelligence to solve virtually any problem but are missing the context (which they are trying to build).

The magic of infusing business context into the model for the most mission-critical use cases IS the product that PLTR delivers today, built on either Foundry or Gotham, using AIP, and delivered through a forward deployed engineer (FDE).

The secret sauce is the Ontology, a highly proprietary database that ingests all the key dependencies of workflows, harmonizing and refactoring them to enable users to change them.

NRR has hit 150%, revenue has grown +85% Y/Y (and accelerating), backlog (RDV) +97% Y/Y, all on just 1K customers and ~4K employees.

Couple that with a massive TAM at ~$385B (using today’s ARPC which is +40% Y/Y) across >100K enterprise companies, supporting a FY26-29 revenue CAGR of 39% in our base case, and 55% in our upside model.

We resume coverage with a Peer Perform, as the current multiple is still the most expensive in software at 30x CY27 revs & 65x EPS (2x peers), which in today’s software backdrop remains a difficult entry point, particularly as PLTR starts to enter larger and more complex renewal cycles against more competitors (data platforms, frontier labs, hyperscalers, AI natives).

We love the business, and if growth trends closer to our upside scenario we could find ourselves looking at an entry point too good to ignore!”

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