DA Davidson raised its price target for Palantir Technologies (NASDAQ: PLTR) to $250 from $200 on Thursday while maintaining its Buy rating. The revision followed Palantir’s AIPCon11 conference, which focused on AI sovereignty, as well as the company’s recent defense and commercial developments.

Palantir Technologies Inc. has emphasized data sovereignty as customers become more selective about the artificial intelligence models they use and how those models are managed. DA Davidson said the company is positioned to serve as a control plane and orchestration layer for a broad range of customers.

The firm’s view follows Palantir’s latest financial results, which included 79% revenue growth and an 85% gross profit margin. Palantir’s market capitalization stands at $399 billion, while 22 analysts have revised their earnings estimates upward for the upcoming period.

DA Davidson also highlighted Palantir’s collaboration with NVIDIA. Palantir built a supply management system for the chipmaker using NVIDIA’s Nemotron. DA Davidson described the system as addressing a real and pressing challenge for NVIDIA.

Army Contract Expands Defense Pipeline

Palantir recently won a production contract for eight TITAN ground stations for the U.S. Army. The contract has a total value of $192 million, including $127 million allocated to Palantir. The company is serving as the prime contractor alongside Anduril and L3Harris.

TITAN combines data from space-based, aerial, and ground sensors and converts it into targeting intelligence for military operations. Palantir’s role as prime contractor extends beyond supplying software: the company is overseeing production and delivery for the program, giving it a broader position in the defense supply chain.

PLTR declined in the days after the TITAN announcement as investors took profits following a roughly 48% gain in August. Around the same time, ARK Invest reduced its position by approximately 139,000 PLTR shares, valued at close to $26 million.

Model-Agnostic Software Limits Capital Spending Exposure

Analysts have continued to focus on Palantir’s model-agnostic software approach. Its Foundry, Gotham, and AIP platforms can operate regardless of which underlying AI model a customer uses. This enables Palantir to expand without the heavy capital spending associated with hardware-dependent AI companies.

That business structure supports CEO Alex Karp’s forecast of $15 billion to $18 billion in free cash flow within two years. The TITAN contract follows the same model, generating revenue from software and coordination while limiting exposure to manufacturing and hardware.

Phillip Securities raised its Palantir price target to $215 from $202 after the company’s Q2 2026 results. Palantir’s revenue exceeded FactSet’s consensus estimate by 6.8%, operating income was 10.5% above estimates, and free cash flow came in 9% above projections.

PLTR is trading around $166, modestly below the consensus analyst price target of $192.19. MarketBeat tracks the highest analyst price target at $255. Benchmark maintained a Hold rating despite Palantir’s strong quarterly results.

Palantir’s next scheduled event is its Q3 earnings report, which is expected in early November 2026. The report will provide the next scheduled update on the company’s financial performance as investors assess its commercial growth, defense activity, and progress against its stated free-cash-flow forecast.

Source: CoinCentral