Palantir Technologies (PLTR) is currently the most expensive stock in the S&P 500. Let that sink in for a second. While the broader market is trying to figure out if the 2025 AI rally has any legs left, Palantir is sitting on a staggering forward P/E ratio of roughly 170.
If you're looking for palantir stock news today, the big story isn't a massive new contract—though those are still coming in—but rather a classic case of valuation gravity finally exerting some force. The stock took a noticeable dip late last week, closing Friday around $170.97, a drop of over 3%. It's a bit of a reality check after a year where the company seemingly could do no wrong.
Honestly, the numbers are kind of mind-boggling. In 2025, Palantir returned 135%, making it the ninth-best performer in the entire S&P 500. But being a "top ten" performer comes with a heavy burden: the market now expects perfection every single time CEO Alex Karp opens his mouth.
The Earnings Countdown: February 2, 2026
Mark your calendars. Palantir has officially confirmed it will release its fourth-quarter and full-year 2025 results on Monday, February 2, 2026. This is the single most important piece of palantir stock news today for anyone holding a position.
The whispers on Wall Street are getting louder. Zacks Consensus Estimates are looking for an EPS of $0.23, which would be a massive 64% jump from the same quarter last year. Revenue is expected to land around $1.35 billion.
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- Bull Case: If Palantir beats these numbers and raises 2026 guidance, the "valuation doesn't matter" crowd will feel vindicated.
- Bear Case: If they just meet expectations, the stock might actually fall. When you trade at 117 times sales, "good" isn't good enough. You have to be legendary.
People are focusing heavily on the U.S. Commercial segment. That’s been the secret sauce. While everyone knows Palantir for its "cloak and dagger" government work, the commercial side grew by a wild 121% year-over-year in the most recent data. They are basically printing money by teaching American companies how to actually use AI through their "bootcamps."
The "Agentic AI" Supercycle
You've probably heard the term "Agentic AI" being thrown around lately. It's the latest buzzword, but for Palantir, it’s a reality. Unlike a standard chatbot that just gives you text, Palantir's Artificial Intelligence Platform (AIP) is increasingly being used to create autonomous agents.
Think about a hospital. Instead of a nurse manually checking a spreadsheet to see who’s on shift, an agent powered by Palantir can re-route staffing in real-time based on incoming ER traffic. This isn't theoretical; it’s what's driving that triple-digit commercial growth.
However, not everyone is convinced the party lasts forever. While Citigroup recently issued a "Buy" with a $235 target, others like RBC Capital are still stubbornly stuck with "Underperform" ratings and targets as low as $50. That’s a massive gap. It shows that nobody really knows how to value a company that sits at the intersection of a defense contractor and a high-growth SaaS firm.
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Why This Dip Might Be Different
Normally, a 3% or 4% drop in a high-beta stock like PLTR is just Tuesday. But this recent slide occurred while the S&P 500 was relatively flat. It suggests some "smart money" is rotating out before the February earnings call.
The company is still heavily reliant on big, lumpy government contracts. Just this past week, news resurfaced about Palantir’s ELITE tool being used for real-time identification in federal enforcement. While CEO Alex Karp leans into the "Western values" and "defense tech renaissance" narrative, it does create a floor of controversy that some institutional investors find hard to stomach.
And then there's the competition. While Palantir is the leader in "ontology-based" software, others like BigBear.ai (BBAI) are nipping at their heels in the defense space, especially after BigBear's $250 million acquisition of Ask Sage.
What to Watch Next
If you’re looking for actionable steps based on palantir stock news today, don't just watch the price action. Watch the Rule of 40 score. Last report, Palantir hit a 114%, which is basically unheard of in software. It means their combined growth and profit margin is off the charts.
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- Monitor the $165 level: This has acted as a psychological support line in recent weeks. If it breaks, we could see a slide toward $150 before earnings.
- Check the "Say Technologies" platform: Palantir uses this for retail shareholders to submit questions for the earnings call. It's a great way to see what the actual "army" of PLTR investors is worried about.
- Watch the 10-Year Treasury Yield: Since Palantir is a high-growth "long duration" asset, if yields spike, PLTR almost always takes a hit.
The bottom line? Palantir is a beast, but even beasts need to breathe. The stock is consolidating after a monster 2025. Whether this is a "buy the dip" moment or the start of a bubble popping depends entirely on if they can prove that their AI bootcamps are still converting customers at a record clip.
Actionable Insight: If you're currently holding, the risk-reward profile suggests waiting for the February 2nd earnings volatility to settle before adding to a position. The valuation is stretched thin, and the market is looking for any excuse to trim gains.
Check the SEC Form 4 filings this week to see if any insiders are selling into this strength—that’s often a more honest signal than any analyst report.