Where Will Palantir Stock Be in 5 Years?

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Keithen Drury, The Motley FoolSun, Jul 6, 2025, 10:15 AM 5 min readIn This Article:Palantir's international commerce growth is lacking.Management has a consistent history of underguiding and overdelivering.The stock has a couple of years of growth already priced in.10 stocks we like better than Palantir Technologies ›Making projections about where a stock will be in five years isn't easy, but it's required in investing. The foundational idea of investing in stocks is identifying a stock that is currently undervalued and will become more valuable in the future. While some traders may set a price target for a month or a year away, long-term investors prefer to focus on a three to five-year time frame, as it allows the business to succeed and lets the market properly value the stock.Invest in GoldOne of the most popular AI stocks in the market is Palantir Technologies (NASDAQ: PLTR). Palantir delivered excellent returns over the past few years, and investors want to know if it's too late to get in. Let's take a look at Palantir's five-year outlook and see if it's a smart buy today. The answer may surprise you.Image source: Palantir.Palantir rose to the top of the AI investing world due to its rapid growth and experience in the space. The company began in the early 2000s by offering its AI-powered data analytics software to government entities, but expanded into the commercial sector over the past few years. Government-sourced revenue remains the majority of Palantir's total, but the commercial side is rapidly gaining.In Q1, Palantir's government revenue increased 45% year over year to $487 million. The growth rate was the same in the U.S. and internationally, indicating that this segment is experiencing healthy growth and adoption worldwide. However, commercial adoption outside the U.S. is slow.Commercial revenue growth companywide was 33% in Q1, bringing Palantir's total to $397 million. In the U.S. specifically, commercial revenue jumped a whopping 71% and totaled $255 million. This highlights a couple of key facts. First, Palantir's U.S. commercial revenue growth needs to continue at its rapid pace for the stock to keep delivering huge growth. Second, if international commercial revenue starts to accelerate, Palantir's overall growth could really pick up speed.The biggest region to watch for Palantir's international growth is Europe, which significantly lagged behind the U.S. in AI adoption. However, that could change in the coming years and provide Palantir a second growth catalyst.Looking ahead in the short term, Palantir's management expects Q2 revenue growth of 38%, a slowdown from Q1's 39% growth. However, investors shouldn't read too much into that, as management has a consistent track record of beating internal expectations. For the full year, it expects revenue of $3.896 billion, representing a 36% increase.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,225.23 -54.12 (-0.86%)Dow 3044,344.75 -483.78 (-1.08%)Nasdaq20,412.36 -188.74 (-0.92%)Russell 20002,216.17 -32.87 (-1.46%)VIX18.07 +0.59 (+3.38%)Gold3,341.70 -1.20 (-0.04%)PortfolioSign in to access your portfolioSign inTop gainersENVX Enovix Corporation 13.22 +1.83 (+16.07%)WNS WNS (Holdings) Limited 74.75 +9.37 (+14.33%)BILI Bilibili Inc. 22.54 +1.66 (+7.95%)RKLB Rocket Lab Corporation 38.38 +2.72 (+7.63%)SAND Sandstorm Gold Ltd. 10.34 +0.71 (+7.37%)Top losersCORZ Core Scientific, Inc. 14.84 -3.16 (-17.57%)BMNR Bitmine Immersion Technologies, Inc. 112.32 -22.68 (-16.80%)APGE Apogee Therapeutics, Inc. 39.89 -7.58 (-15.96%)CLSK CleanSpark, Inc. 11.19 -1.06 (-8.69%)ATS ATS Corporation 29.66 -2.83 (-8.71%)Most activeLCID Lucid Group, Inc. 2.0850 -0.0750 (-3.47%)TSLA Tesla, Inc. 293.38 -21.97 (-6.97%)NVDA NVIDIA Corporation 158.44 -0.90 (-0.57%)CORZ Core Scientific, Inc. 14.84 -3.16 (-17.57%)SOFI SoFi Technologies, Inc. 19.02 +0.45 (+2.42%)Earnings eventsTrending tickersTSLA Tesla, Inc. 293.54 -21.81 (-6.92%)WOLF Wolfspeed, Inc. 2.5875 +1.4075 (+119.04%)PLTR Palantir Technologies Inc. 138.83 +4.47 (+3.33%)SOFI SoFi Technologies, Inc. 19.05 +0.48 (+2.56%)CORZ Core Scientific, Inc. 14.83 -3.18 (-17.63%)Top economic eventsPowered by Money.com - Yahoo may earn commission from the links above.