Palantir (PLTR) Gearing Up for 2026

Palantir (PLTR) had a great 2025, gaining more than 150% year-to-date and over 140% year-over-year. Much like Amazon (AMZN) grew its AWS segment into a behemoth that, unbeknownst to many, powered a huge segment of the internet, Palantir has been embedding itself across public and private sectors to provide AI services.

For example, it recently announced a partnership with Accenture (ACN) to develop enterprise AI adoption. In a press release, the companies said a combined group of employees will focus on data center operations and AI infrastructure programs. They will work to provide services across diverse industries, including health care, telecommunications, consumer goods, financial services, and manufacturing.

There are two types of AI in the ‘AI Revolution’ of 2025: analytical AI and generative AI. This is somewhat of an oversimplification, but a lot of market focus has been on the latter, particularly with the hundreds of billions in splashy investment deals around OpenAI and Nvidia (NVDA). Either way, the premise remains: those with the most data and the greatest compute power are pulling ahead. 

Palantir is amassing both and is becoming increasingly indispensable. It landed a $10 billion Army contract in August, and its total revenue from the U.S. government grew by 52% year-over-year to $486 million in its 3Q25 earnings report, released November 2. Government contracts have made up the majority of its revenue since its inception, but it is branching out into the private sphere as well. 

Investors should note, however, that the stock is at a significant premium. It only cracked $1 billion in quarterly revenue for the first time this year, while its P/E ratio is in the low-to-mid 400s. Even if there is no AI bubble, which some on Wall Street fear, eventually the market may bring the stock back down to earth as comps become more difficult. Think of Nvidia’s incredible growth over the last few years, and then the shakeup as it started to slow. 

Of course, Nvidia is still having a stellar 2025, so this is not to say that share price could collapse. Investors might consider what moderation might mean.

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any decisions.

Schwab Network is brought to you by Charles Schwab Media Productions Company (“CSMPC”). CSMPC is a subsidiary of The Charles Schwab Corporation and is not a financial advisor, registered investment advisor, broker-dealer, or futures commission merchant.

Charles Schwab Media Productions Company and all third parties mentioned are separate and unaffiliated, and are not responsible for one another's policies, services or opinions.

Data contained herein is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. All events and times listed are subject to change without notice.