Palantir just posted one of the strongest quarters in its history as a public company. Wall Street’s reaction was divided. The stock fell. And one analyst said he had never seen anything like this on this scale.
That analyst was John McPeake of Rosenblatt Securities. And he responded by raising his price target.
Rosenblatt raises Palantir stock price target
McPeake raised his price target on Palantir to $225 from $200 on May 5, maintaining a buy rating, according to TipRanks. The move came following Palantir’s first-quarter 2026 earnings report, which McPeake described as a “significant beat” of estimates.
McPeake also raised his estimates following the results. The revised $225 target places Rosenblatt among the most bullish voices on the Street, placing it above analysts’ current average price target of $200, according to Quiver Quantitative.
What McPeake said about Palantir’s quarter
McPeake didn’t frame this as a profit routine. “We believe enterprise integration, orchestration, and ontology are the key to unlocking the value of AI in the enterprise,” he said, according to Benzinga.
He went further to characterize the growth profile. McPeake said he had never seen a company with Palantir’s level of organic acceleration in revenue and earnings growth on this scale in the technology sector, Benzinga confirmed.
Those are important statements from a sell-side analyst. They frame Palantir not as a company that had a good quarter, but as one that does something structurally different from its peers in enterprise software.
Why the argument from ontology is important
Rosenblatt’s thesis is based on Palantir’s ontology layer, which McPeake considers the company’s most defensible competitive advantage. In practical terms, the ontology is the database that links structured and unstructured business information into a single operating model, according to 24/7 Wall St.
The argument is that most AI companies can generate buzz, but few can show a practical path to enterprise adoption.
Rosenblatt’s position is that Palantir’s integration and orchestration capabilities are what enable customers to move from isolated AI pilots to AI deployed at scale in real business operations. This rigidity, if maintained, is what justifies both the growth rate and the valuation of premiums.
The profit numbers behind Rosenblatt’s Palantir upgrade
Palantir’s revenue in the first quarter of 2026 was $1.633 billion, an increase of 85% year-over-year. Adjusted operating income grew 152% in the quarter. Palantir raised its full-year 2026 revenue guidance to a range of $7.650 billion to $7.662 billion, from a previous range of $7.182 billion to $7.198 billion.
The bottom of the new range was above the Street’s previous high estimate of $7.24 billion, according to Investing.com.
More Palantir
The second-quarter forecast of $1.797 billion to $1.801 billion was also well above the Street estimate of $1.679 billion, according to Benzinga. Management’s 2026 operating income guidance implies growth of approximately 97% for the full year.
Despite all that, Palantir shares fell 6.7% to $136.12 on May 5, Benzinga noted. The move reflects how high expectations had already been set and how sensitive a premium-rated stock can be to any reading that doesn’t meet the most optimistic scenarios.
Key figures from Rosenblatt’s Palantir update:
-
Rosenblatt Price Target: $225, up $200, buy rating held, analyst John McPeake, May 5, per TipRanks
-
First quarter 2026 revenue: $1.633 billion, up 85% year over year; Adjusted operating income increased 152%, according to Investing.com.
-
Fiscal Year 2026 Revenue Guidance: Raised to $7.650 billion-$7.662 billion from $7.182 billion-$7.198 billion, above the Street high of $7.240 billion, Investing.com confirmed
-
Revenue Guidance for Q2 2026: Between $1,797 and $1,801 billion versus the Street estimate of $1,679 billion, according to Benzinga
-
Average Street Price Target on Palantir: $200, compared to $225 for Rosenblatt and $230 for Wedbush, according to Quiver Quantitative
-
DA Davidson Price Target: Downgraded to $165 from $180, neutral rating maintained, Benzinga noted
-
Palantir Stock on May 5: It fell 6.7% to $136.12 despite improving earnings, according to Benzinga
Where is the street in Palantir and what divides it
Rosenblatt’s target of $225 is one of the most aggressive buy options on the market, but not the most aggressive. Wedbush also set a target of $230 on May 5. On the other hand, RBC Capital maintained a target of $90 and DA Davidson actually lowered its target from $180 to $165, maintaining a neutral rating, according to Quiver Quantitative.
That extension tells you something important about the Palantir debate. The bull case is based on the ontology thesis, sustained government and business momentum, and the argument that the Rule of 40 score of 145% represents a lasting structural advantage.
The bearish argument centers on a valuation that requires continued, flawless execution and the risk that AI spending cycles are more cyclical than they currently appear.
For investors watching from the sidelines, Rosenblatt’s message is that the first quarter’s impression wasn’t unique, that growth is accelerating rather than peaking, and that the ontology layer gives Palantir something that competitors aren’t close to replicating.
Whether $225 is the right number depends almost entirely on whether that last point holds over the next few quarters.
Related: Palantir resets annual forecast due to strong demand from US government
This story was originally published by TheStreet on May 7, 2026, where it first appeared in the Investments section. Add TheStreet as a preferred source by clicking here.