Palantir: The AI Bottleneck Has Moved In Its Favor

Palantir Technologies is positioned as the operational layer enabling governed AI decision-making across enterprises, not just an analytics provider.

Q2 2026 saw revenue surge 93% YoY to $1.935B, with both U.S. commercial and government segments accelerating and GAAP operating margin reaching 47%. Management guides FY 2026 revenue of $8.15B–$8.16B, with ~60% adjusted operating margin and $4.5B–$4.7B in adjusted free cash flow.

I assign a Buy rating and 18–24 month price target of $185–$205, reflecting PLTR’s unique role in enterprise AI, strong growth, and exceptional profitability.

I do not believe that Palantir Technologies’ (PLTR) strongest case has anything to do with the fact that artificial intelligence spending is going up.