Palantir Technologies (PLTR) stock rose over 4% after the data analytics company posted better-than-expected second-quarter results and raised its full-year outlook. Quarterly revenue reached $1 billion for the first time, topping analyst estimates of $940 million. Palantir also raised its full-year 2025 revenue guidance to between $4.142 billion and $4.150 billion, up from a prior range of $3.89 billion to $3.90 billion.
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Following the results, Wedbush analyst Dan Ives reiterated his Outperform rating and $160 price target, calling the quarter a “blowout across the board.” The 4.5-star analyst called Palantir one of his “top tech picks for 2025,” pointing to growing momentum across both federal and commercial markets.
Ives’ Take on PLTR’s Q2 Results
Ives said the strong results and another raise in full-year guidance reflect strong demand for Palantir’s AI platform (AIP), which is gaining wider use among both government agencies and large companies.
According to Ives, one key area of growth is U.S. commercial revenue, which Palantir now expects to rise 85% year-over-year in FY25. That’s a big jump from its earlier forecast of 68%. He sees this jump as proof that adoption of the company’s AI tools is accelerating in the private sector.
Looking ahead, he expects profitability to improve further. Palantir now sees full-year adjusted operating income between $1.912 billion and $1.920 billion, up from the previous range of $1.711 billion to $1.723 billion. Free cash flow guidance has also been raised to between $1.8 billion and $2 billion, reflecting stronger cost control and operating leverage.
Ives has also praised CEO Alex Karp’s leadership, calling it a “Hall of Fame performance.” He believes the company is building a “trillion-dollar valuation story.” He even placed Palantir among the “Mount Rushmore” of AI, alongside other leading names in the space.
Ives Pushes Back on Valuation Concerns
While some analysts remain cautious due to Palantir’s high valuation, Ives isn’t concerned. He argued that focusing too much on valuation has led investors to miss out on major tech winners in the past 20 years. With its strong growth and expanding margins, he believes Palantir still has room to run and remains one of his “top tech picks for 2025.”
Is PLTR Stock a Buy?
Palantir Technologies’ stock has a consensus Hold rating among 14 Wall Street analysts. That rating is based on four Buy, seven Hold, and three Sell recommendations issued in the last three months. The average PLTR price target of $111.14 implies 30.82% downside risk from current levels.
