Palantir Breaks Out: Why PLTR Stock May Rally Into Year-EndWritten by Chris Markoch. Published 11/1/2025.
Key Points- Palantir extends its AI partnership with Lumen Technologies, expanding its commercial portfolio.
- The company signs a new letter of intent with Poland’s Ministry of Defense, strengthening its European defense presence.
- PLTR stock hits new all-time highs ahead of its November 3 earnings report after gaining 162% in 2025.
Palantir Technologies (NASDAQ: PLTR) has delivered strong results for investors over the past two years, and that consistency has been reflected in the stock price. Ahead of several earnings reports, the stock has tended to consolidate — effectively taking a breather — before the quarterly release. After those reports, PLTR has often pushed to new highs.
The stock formed a similar consolidation in October, but news on both the government and commercial sides of the business sent PLTR to new all-time highs ahead of its Nov. 3 earnings report.
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If Palantir posts another strong quarter, the stock may be positioned for a year-end rally on top of its 162% gain in 2025.
Palantir and Lumen: A Game-Changing PartnershipIn late October, Palantir announced two notable deals. The first was a multi-million-dollar extension of the company’s partnership with Lumen Technologies (NYSE: LUMN). Lumen is another blue-chip addition to Palantir’s growing commercial portfolio, which grew 55% year-over-year in the company’s most recent quarter.
The partnership makes strategic sense: data integration and AI-driven analytics are increasingly critical for telecommunications and network infrastructure. Lumen plans to use Palantir’s Foundry and Artificial Intelligence Platform (AIP) to improve network operations, optimize capacity, and potentially strengthen cybersecurity and customer experience through predictive analytics.
A Deal That Expands Palantir’s European FootprintOne common concern among skeptics is Palantir’s international growth. Part of that challenge stems from the company’s stance on data and governance at a time when those positions can be politically sensitive.
Still, on Oct. 27 Poland’s defense minister and Palantir CEO Alex Karp signed a letter of intent in Warsaw to deepen cooperation on data integration, AI, and cybersecurity. For now, the agreement is an LOI, but it signals Poland’s interest; the country has recently collaborated with defense firms such as Anduril on missile programs as part of a broader modernization push.
Poland spends nearly 4.8% to 5% of its gross domestic product (GDP) on defense, making it one of NATO’s largest military spenders and a potentially significant client for Palantir in Europe. Moreover, many foreign governments are aligning with the U.S. on defense procurement; earlier this year NATO adopted Palantir’s Maven Smart System as an example of that trend.
Analyst Targets and Institutional Momentum Keep PLTR in FocusThe Palantir analyst forecasts on MarketBeat show Bank of America with the highest price target at $215. The consensus target, roughly $142, implies the stock trades about 28% above what many analysts consider fair value.
Price targets are estimates, and they can move quickly. In Palantir's case the consensus target has trended higher over the past 18 months — often driven more by momentum than by a wholesale change in valuation assumptions.
Like many technology names, PLTR can feel frothy at times, but momentum has shifted from retail into institutional hands. Palantir’s inclusion in the S&P 500 and, more recently, the Nasdaq-100 means many index funds and institutional managers are increasingly required to hold the stock.
Adding to the momentum case is Palantir’s market capitalization, now reported at over $471 billion, which increases its weight in market-cap-weighted indexes and can further reinforce demand from passive funds. |
