Goldman Sachs Reaffirms Buy on Palantir, $235 Price Target

Goldman Sachs analyst Gabriela Borges reiterated a Buy rating and $235 price target on Palantir (NASDAQ: PLTR).

“Palantir was -3% after market post reporting 3Q revenue 7% above the Street and EBIT margin ~200ps above. 3Q total revenue accelerated to 96% from 93% in 2Q.

2026 revenue guidance was raised to 5% above the Street and EBIT margins to ~150bps above.

In our view, the muted reaction likely reflects weaker forward indicators: USC TCV (total contract value) was $1.5bn, +11% yoy vs. +153% last quarter; USC RDV (remaining deal value) was $6.5bn, +79% vs. +124%; and cRPO growth moderated to 88% from 105%.

Palantir attributed some of this to shorter contract durations, particularly as Sovereign AI customers increasingly start with shorter engagements to deploy quickly and prove value.

These shorter contracts can weigh on RPO, where deals <12 months are not captured, and TCV can also be volatile based on contract duration and renewal/expansion mix.

We think Palantir is very well positioned with Sovereign AI, which will likely be the next phase of enterprise AI transformation in 2027.

The key will be converting shorter duration contracts into longer duration commitments, which Palantir has done successfully in the past. Annualized USC ARPC reached ~$5.7mn, up ~20% qoq and 90% yoy.

Recent pilots have scaled roughly 5-15x in ACV, including: a global athletic company from $1.6mn to ~$21mn; a home appliance company from $1mn to $15mn as usage broadened across commercial, finance and supply chain; and an apparel company from $2.5mn to $11.5mn.

In our view, this demonstrates how tangible ROI can translate into broader deployments and continued wallet share expansion.

Taken together, while we do not expect further acceleration, we do believe that growth can be sustained at very high levels over the next several quarters, driving 20- 35% upside to 2029 Street revenue estimates.”

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