Palantir (PLTR) Stock Down 30% in 2026 Despite Wedbush’s $230 Price Target and Strong Q1 Results

Key Takeaways

• Wedbush maintains its Outperform rating on PLTR, setting a $230 price target that represents approximately 100% upside from the current ~$115 trading level.
• Shares of PLTR have declined between 30–40% during 2026, currently hovering near the 52-week low of $113.92.
• First quarter 2026 results showed Palantir delivering 85% revenue growth year-over-year, reaching $1.63 billion, while EPS surged 154%.
• During Q1, the company secured $2.4 billion worth of new contracts, elevating its total remaining deal value to $11.8 billion.
• A strategic alliance with Zeta Global is projected to deliver over $100 million in revenue for Zeta across several years.

Palantir Technologies (PLTR) has experienced significant headwinds throughout 2026. Shares have tumbled approximately 30% since the year began and were changing hands near $115 on Tuesday — dangerously close to the 52-week low of $113.92. Yet Wedbush analysts haven’t wavered, maintaining their Outperform rating alongside a $230 price target that suggests potential gains approaching 100% from present levels.

Palantir Technologies Inc., PLTR

Wedbush’s price objective has remained steady even as PLTR shares have plummeted roughly 40% across the last six months. The firm’s position is unambiguous: Wall Street is significantly undervaluing what Palantir brings to the table.

Analysts at the firm emphasized that Palantir continues to lead in enterprise artificial intelligence innovation and that a substantial portion of the investment community still hasn’t grasped the full scope of the company’s technological capabilities. This observation highlights the substantial gap between stock performance and underlying business fundamentals.

The fundamental performance has been exceptional. During the first quarter of 2026, Palantir delivered revenue totaling $1.63 billion — representing an 85% increase compared to the prior year period. Non-GAAP earnings per share reached $0.33, marking a remarkable 154% surge from Q1 2025. For context, the technology sector overall experienced earnings expansion of roughly 45% during the same timeframe, making Palantir’s performance particularly noteworthy.

Gross profit margins remain at an impressive 84%, demonstrating the exceptional efficiency inherent in the company’s software-driven business model.

Zeta Global Alliance Expands Revenue Opportunities

Palantir recently unveiled a strategic collaboration with Zeta Global, centered on enterprise marketing solutions powered by integrated AI and data infrastructure. This arrangement leverages Palantir’s Foundry platform to transform Zeta’s Data Cloud, creating connections between operational systems and customer intelligence through what the companies characterize as agentic AI.

Wedbush analysts highlighted this partnership as a significant advancement in the marketing infrastructure landscape. The collaboration is anticipated to generate in excess of $100 million in revenue for Zeta spanning multiple years.

This represents just one initiative among several recent developments. Palantir is also serving a critical function in the U.S. Army’s Next Generation Command and Control initiative, constructing a unified data layer utilizing Foundry to advance the Army’s technology modernization objectives.

Contract Backlog Signals Strong Future Performance

Among the most significant indicators is Palantir’s remaining deal value (RDV) — representing the aggregate value of executed contracts awaiting fulfillment. At the conclusion of Q1, RDV nearly doubled on a year-over-year basis, climbing to $11.8 billion.

During the first quarter alone, the company inked $2.4 billion in fresh contracts, substantially exceeding its actual quarterly revenue. This dynamic indicates that customer demand is outpacing current delivery capacity, a pattern that generally supports sustained revenue expansion going forward.

Palantir’s full-year 2026 revenue projection stands at $7.66 billion.

From a valuation perspective, PLTR currently trades at a trailing price-to-earnings multiple of 134 and a forward P/E of 81 — significantly elevated compared to the Nasdaq average of 41. Despite the recent decline, the stock remains expensive by traditional metrics. Nevertheless, InvestingPro analysis suggests the shares are currently overvalued relative to Fair Value calculations.

UBS maintains a Buy rating with a $200 price objective. Wolfe Research recently elevated its stance to Peerperform.