Palantir (PLTR) Stock Rallies 15% as Iran War Drives Defense Demand

TLDR

• Palantir stock rose 15% for the week, closing Friday at $157.16, its best week since August
• The U.S. attack on Iran boosted investor interest in defense tech stocks, with Palantir seen as a direct beneficiary
• Government work makes up roughly 60% of Palantir’s revenue, and its tools were used in Iran operations
• Analysts at Rosenblatt raised their price target to $200; Piper Sandler holds a $230 target
• The blacklisting of Anthropic by the Pentagon raised questions about Palantir’s AI partnerships, but analysts say alternatives exist

Palantir ($PLTR) had a standout week while much of the market struggled. The stock closed Friday at $157.16, up about 2.9% on the day and 15% for the week — its strongest weekly performance since August.

Palantir Technologies Inc., PLTR

The broader market moved in the opposite direction. The Nasdaq fell 1.2% for the week, weighed down by Apple, Google, and Micron. Oil prices spiked, and a February jobs report showed the U.S. economy unexpectedly shed jobs.

Palantir moved higher as investors focused on the U.S. attack on Iran. Government contracts account for roughly 60% of Palantir’s revenue, and the company has been deepening its work with military and intelligence agencies.

Its Maven Smart System provides AI capabilities including weapons targeting to the U.S. military, and those tools were reportedly used during the Iran operations. Last year, Palantir signed a $10 billion contract with the Army.

President Trump has given no indication the conflict will end quickly, which kept defense-focused investors buying into Palantir through the week.

Analyst Targets Move Higher

Rosenblatt kept its buy rating on PLTR and raised its price target to $200 from $150. The firm wrote that the Middle East conflict “bodes well” for Palantir’s government pipeline and that more Army-style deals could follow.

Piper Sandler reiterated an overweight rating and maintained its $230 price target. Citigroup has a $260 target and a buy rating. The consensus among analysts tracked by MarketBeat sits at “Moderate Buy” with an average price target of $192.68.

UBS upgraded PLTR from neutral to buy earlier in the week, though it trimmed its target to $150.

Palantir’s most recent quarterly earnings, reported February 2, beat expectations. The company posted $0.25 EPS versus the $0.23 consensus and reported $1.41 billion in revenue, up 70% year-over-year. Net margin came in at 36.31%.

Anthropic Blacklisting Raises Questions

One overhang this week was the Pentagon’s decision to blacklist Anthropic as a government supplier. The two sides failed to reach an agreement on how AI models could be used in relation to autonomous weapons and domestic surveillance.

Palantir, Amazon Web Services, and Anthropic had partnered in November 2024 to bring Claude models to defense and intelligence agencies. Anthropic had also landed a $200 million Defense Department contract and was the first AI lab to integrate models on classified networks.

Palantir has not publicly addressed what it plans to do about the Anthropic partnership. Rosenblatt noted there are “adequate alternatives” to Claude models. Piper Sandler was more cautious, writing that replacing Anthropic will take time that could have been used on growth opportunities.

Anthropic CEO Dario Amodei said in a blog post Thursday that he has “no choice” but to challenge the blacklisting in court.

The stock also got a lift from a broader software rebound. The iShares Expanded Tech-Software Sector ETF surged nearly 8% for the week. CrowdStrike, ServiceNow, and AppLovin each gained more than 15%.

The company’s 50-day moving average stands at $156.11. Its market cap is approximately $375.9 billion, with a P/E ratio of 249.

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