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Palantir Posts Blowout Q2, Raises Guidance as Stock Runs Higher

The results point to strong demand for Palantir’s on‑premise AI deployment tools and give analysts cause to lift forecasts and price targets.

Overview

  • Palantir reported second‑quarter revenue of about $1.94 billion and EPS of $0.41, beating Wall Street estimates and marking roughly 93% year‑over‑year growth.
  • Management raised full‑year revenue guidance to roughly $8.15–8.2 billion and lifted adjusted operating income targets, signaling higher profitability expectations for FY26.
  • U.S. commercial revenue jumped about 149% to $764 million while U.S. government revenue rose about 90% to $809 million, driven by larger commercial deals and deployments of Foundry and AIP.
  • The market reacted with a multi‑day rally that sent the stock roughly 40% higher for the week and prompted analyst upgrades and higher targets, including Bank of America’s $255 price objective.
  • Key risks remain: Palantir trades at a very high forward multiple, insiders sold more than 1.1 million shares recently, U.S. customer concentration and procurement timing persist, and investors are watching whether large bookings and a $13.1 billion backlog convert into steady recurring revenue.