Palantir Technologies shares are trading higher after the company announced a partnership with Rackspace Technology to run Foundry and AIP in production with government managed operations. Also, Mizuho upgraded the stock from Neutral to Outperform and announced a $195 price target.
Original source ↗  |  February 18, 2026 at 09:49 UTC  |  Finnhub - PLTR
Speakers
Benzinga

Summary

  • Palantir Technologies (PLTR) announced a new partnership with Rackspace Technology to deploy its Foundry and AIP platforms for government managed operations.
  • This news serves as a fundamental catalyst, suggesting an expansion of Palantir's go-to-market strategy within its core government sector.
  • Separately, Mizuho provided a strong bullish signal by upgrading PLTR stock from Neutral to Outperform.
  • Mizuho also issued a new price target of $195 for Palantir, which represents significant upside from the article's noted price of $137.01.

=== MARKET IMPLICATIONS === - The combination of a strategic partnership and a significant analyst upgrade is a powerful dual catalyst for PLTR, likely to drive positive sentiment and buying pressure in the short-to-medium term. The partnership with Rackspace could accelerate sales cycles and scalability in the government vertical. - Rackspace Technology is a direct beneficiary of this news. The partnership validates its capabilities in secure, managed government operations and aligns it with a high-growth leader in AI, potentially creating a new, significant revenue stream. - The $195 price target from Mizuho provides a clear quantitative anchor for bulls, suggesting a potential ~42% upside from the price mentioned in the article. This could force a re-rating of the stock by other analysts and attract momentum-focused investors.

Trade Ideas
Ticker Direction Speaker Thesis Time
LONG Benzinga (reporting on Mizuho and company news) Palantir announced a partnership with Rackspace to expand its government business and was upgraded to Outperform with a $195 price target by Mizuho. This dual catalyst provides both a fundamental reason (business expansion) and a technical/sentiment reason (analyst upgrade) for the stock to move higher. The $195 price target offers a clear objective for the upward trend. The news provides a strong, multi-faceted bullish narrative. The partnership enhances Palantir's growth story in its key government market, while the Mizuho upgrade provides institutional validation, likely attracting significant capital inflows. The market could experience a broad sell-off, negating the positive company-specific news. The financial impact of the Rackspace partnership may be smaller than anticipated or take longer to materialize. The stock's pre-market gains may have already priced in the news, leading to a "sell the news" reaction.
WATCH Benzinga Rackspace Technology has partnered with Palantir to run its key software platforms (Foundry, AIP) for government clients. This partnership represents a significant validation of Rackspace's service offerings and provides a new sales channel by piggybacking on Palantir's strong position in the government sector. This could be a meaningful, high-margin revenue driver for Rackspace. While Palantir is the primary subject, Rackspace is a key enabler and beneficiary of this deal. The market may initially overlook the positive implications for Rackspace, creating a potential opportunity. We should watch for unusual volume and price action to gauge if a long entry is warranted. The revenue contribution from this single partnership may be immaterial to Rackspace's overall financials. The success of the venture is heavily dependent on Palantir's ability to sell the joint solution. The market may remain entirely focused on PLTR, leading to no positive re-rating for Rackspace.