Shares of Palantir ( PLTR ) were lucrative for investors this year as the company’s commercial unit continued to grow rapidly while its government segment remained a reliable source of cash.

Last month, the Nasdaq-listed company also raised its full-year outlook, with revenue now at about $4.4 billion, reflecting management’s confidence in continued momentum ahead.

At the time of writing, Palantir shares are already up more than 145% from early 2025.

PLTR ended its third financial quarter with an increase in deal remaining commercial value (RDV) of approximately 200% year-over-year, indicating strong demand for its platforms among US companies.

Of course, the stock isn’t cheap heading into 2026, but continued upside in the Foundry, Gotham, and Apollo use cases suggests the premium may be justified.

On the “Rule of 40,” a key benchmark for the SaaS industry, the data analytics giant currently ranks at a staggering 94, underscoring its rare balance of growth and profitability.

Even from a technical perspective, PLTR stock is attractive, with a 100-day relative strength index (RSI) near 55, the strengthening of the upside momentum is not over yet.

Analysts at Bank of America reiterated their “Buy” rating on Palantir’s stock last week after the Denver-based company won a two-year, $48 million ShipOS contract from the US Navy.

According to the investment firm, the evolution of use cases will increase the margin, which will allow for even more material in the AI ​​stock over time.

By 2026, BofA sees it reaching $255, indicating a potential upside of another 30% from current levels.

Options traders also seem to agree with the bank. Derivatives contracts expiring at the end of March suggest Palantir shares could trade north of $225 over the next three months, according to Barchart.

However, not all investment firms share Bank of America’s optimism about PLTR stock.

The consensus rating on Palantir stock is currently only at “Hold”, with the average target of around $193 already in line with the price at which they are currently trading.