Palantir (PLTR) Stock Surges as Analysts Turn More Bullish

TLDR

• Palantir stock surged nearly 30% after the company reported stronger-than-expected quarterly earnings and revenue.
• Quarterly revenue rose 93% year over year to $1.94 billion, beating Wall Street’s forecast of about $1.80 billion.
• Adjusted earnings reached $0.41 per share, compared with analysts’ estimate of $0.35 per share.
• U.S. commercial revenue climbed 149% to $764 million, while U.S. government revenue increased 90% to $809 million.
• Palantir raised its full-year revenue forecast to between $8.15 billion and $8.16 billion.

Palantir (NASDAQ: PLTR) stock rose sharply after the company reported quarterly results that beat Wall Street forecasts. Shares gained nearly 30% on Aug. 4 and closed near $162 after starting the session in the low $120s.

Palantir Technologies Inc., PLTR

The rally followed strong revenue growth, higher profits, and raised guidance. Analysts also lifted their price targets as demand for Palantir’s artificial intelligence software remained firm across commercial and government clients.

Palantir Stock Gains on Strong Revenue Growth

Palantir reported quarterly revenue of $1.94 billion, up 93% from a year earlier. The figure topped the average analyst estimate of about $1.80 billion. Adjusted earnings reached $0.41 per share, above the expected $0.35.

The company also reported a 55% GAAP net margin and about $1 billion in profit. Cash flow from operations reached $1.2 billion, while adjusted free cash flow stood at $1.22 billion.

Palantir’s U.S. commercial revenue rose 149% from a year earlier to $764 million. The segment also grew 28% from the previous quarter. U.S. government revenue increased 90% to $809 million.

The company said customer spending remained strong. Net dollar retention rose to a record 157%. Palantir also closed several large contracts during the quarter, showing broader use of its AIP software platform.

Management Raises Full-Year Forecast

Palantir now expects full-year revenue of $8.15 billion to $8.16 billion. Its previous forecast ranged from $7.65 billion to $7.66 billion. The company also expects U.S. commercial revenue to exceed $3.42 billion.

For the third quarter, Palantir forecasts revenue between $2.16 billion and $2.164 billion. Adjusted operating income could reach about $1.29 billion. Management also expects adjusted free cash flow of $4.5 billion to $4.7 billion for the year.

Chief Executive Alex Karp said the growth pace could continue for at least another 18 months, based on demand.

Several analysts turned more bullish after the report. Citi raised its Palantir stock price target to $245, while Mizuho set a target of $215. Veteran analyst Stephen Guilfoyle kept a $181 target.

Guilfoyle cited strong growth, rising margins, high cash flow, and a debt-free balance sheet. Palantir ended the quarter with $9.4 billion in cash and no debt.

Despite the rally, Palantir stock remains below its level at the start of 2026. Investors will now track whether commercial growth stays strong and whether the company can meet its raised forecasts.

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