Palantir Technologies (PLTR) stock is soaring Tuesday after the data analytics firm beat top- and bottom-line expectations for its second quarter and raised its full-year revenue forecast.
In the three months ended June 30, Palantir's revenue increased 27.2% year-over-year to $678.1 million, driven by 54.6% growth from U.S. commercial customers to $159.2 million and strong growth in its Artificial Intelligence Platform (AIP). Its earnings per share (EPS) improved to 9 cents from 5 cents in the year-ago period, up 80%.
"The growth of our business has been re-accelerating steadily, and we see an unprecedented opportunity ahead to capture and build on that momentum," wrote Palantir CEO Alex Karp in his letter to shareholders. "Our growth across the commercial and government markets has been driven by an unrelenting wave of demand from customers for artificial intelligence systems that go beyond the merely performative and academic."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results surpassed analysts" expectations. Wall Street was anticipating revenue of $653 million and earnings of 8 cents per share, according to MarketWatch.
As a result of its strong performance in the first half of 2024, Palantir raised its full-year revenue forecast. The company now anticipates revenue to arrive between $2.742 billion to $2.75 billion, up from its previous forecast of revenue in the range of $2.677 billion to $2.689 billion. The revised outlook includes U.S. commercial revenue growth of at least 47% to over $672 million, up from its prior guidance for growth of at least 45% to over $661 million.
Is Palantir stock a buy, sell or hold?
Although Palantir is up 51% for the year to date, Wall Street is on the sidelines when it comes to the tech stock. According to S&P Global Market Intelligence, the average analyst target price for PLTR stock is $24.56, representing a discount of roughly 7% to current levels. Additionally, the consensus recommendation is Hold.
Still, there are some bulls to be found, including in financial services firm Wedbush, which has with an Outperform rating (equivalent to a Buy). The group also hiked its price target on Palantir after earnings.
"We are raising our price target to $38 from $35 as the AIP story now takes hold for the Palantir story," said Wedbush analyst Daniel Ives in a note. "We maintain our Outperform rating with our bull case $50. This was a game changer quarter for the Palantir story as the AIP monetization piece on U.S. commercial was front and center as a major growth driver."
Wedbush's $38 price target is the highest on Wall Street and sits 44% higher than where Palantir is currently trading.
Related Content
-
What to Expect in the Rest of This Year's Job Market — and Advice for Job SeekersEspecially in the most competitive fields, job seekers will need to strategize to stand out.
-
Five Tips For Estate Planning in 2025We're almost halfway through the year. Is your estate in order? If not, here are some tips to get it done in 2025.
-
Is It Still Worth It to Gift Savings Bonds?Kiplinger editor explores if it's still a good idea to get savings bonds as gifts for children, looking at their returns and usability.
-
Don't Veer Off Course at the First Sign of a Squall in the MarketsWhen markets go nuts and investor sentiment drops, you can keep your sanity by trusting in and sticking with your long-term plan.
-
How Business Owners Can Prepare for a Terminal DiagnosisThe most important thing is readiness, whether the owner faces a life-changing diagnosis or an employee does.
-
Advisers, Take Note: How 2025 Social Security Changes May Impact Your ClientsWhat financial advisers might need to know to help their clients navigate Social Security in 2025.
-
Stock Market Today: Have We Seen the Bottom for Stocks?Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
-
Social Security Is Taxable, But There Are WorkaroundsIf you're strategic about your retirement account withdrawals, you can potentially minimize the taxes you'll pay on your Social Security benefits.
-
Serious Medical Diagnosis? Four Financial Steps to TakeA serious medical diagnosis calls for updates of your financial, health care and estate plans as well as open conversations with those who'll fulfill your wishes.
-
What Wall Street's CEOs Are Saying About Trump's TariffsWe're in the thick of earnings season and corporate America has plenty to say about the Trump administration's trade policy.
