Feb. 3 at 1:38 PM
Baird upgraded Palantir to Outperform, citing accelerating revenue growth, strong free cash flow (FCF) expansion, and a more attractive valuation. The firm highlighted Palantir’s tenth consecutive quarter of accelerating total revenue growth, reaching 70% year over year, driven by strong U.S. commercial demand.
Baird said investors may begin valuing Palantir based on FCF multiples rather than revenue multiples, as rapid cash flow growth strengthens its valuation case. The firm raised its 2027 FCF forecast from
$4 billion to nearly
$6 billion, with a bullish scenario of
$7–8 billion, arguing the current valuation is reasonable relative to its growth rate.
The firm also noted improving visibility, with remaining performance obligations rising 144% year over year, and highlighted strong expansion potential in U.S. commercial markets. Baird increased its 2026 forecasts to
$7.19 billion in revenue and
$4 billion in FCF, reiterating Palantir as a major AI beneficiary.
$PLTR