Palantir Technologies (PLTR) will report its Q2 earnings today, after market close. The stock has surged nearly 104% year-to-date, driven by momentum in its AI software business, new government deals, and strong financial position. Wall Street analysts expect Palantir to report earnings of $0.14 per share for Q2, up 55% from the year-ago quarter. Also, revenue is expected to come in at $939.3 million, up over 39% year-over-year, according to the TipRanks Analyst Forecasts Page.
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Notably, Palantir has an encouraging earnings surprise history, having missed estimates only once in the past nine quarters. While some analysts remain careful about Palantir’s high valuation, its growing commercial business and solid margins continue to support the bullish case.
Analysts’ Views Ahead of Palantir’s Q2 Earnings
Ahead of Palantir’s Q2 print, Loop Capital Markets analyst Mark Schappel boosted his price target on PLTR stock to $178 from $155, while maintaining a Buy rating. Schappel expects Palantir to beat earnings estimates and raise guidance again, continuing its streak of strong quarters. He believes Palantir’s strong position in the AI space and profit margins justify its premium valuation. He also sees growing traction in commercial contracts and continued strength in government deals, supported by federal modernization efforts.
Similarly, Piper Sandler analyst Brent Bracelin initiated coverage on PLTR stock with a Buy rating and a price target of $170. Bracelin sees strong growth potential in Palantir’s core markets, namely U.S. government and commercial sectors, driven by rising demand for artificial intelligence. Bracelin remains impressed with Palantir’s unique growth model and 40%+ free cash flow margin. He believes the company’s revenue could grow from a current $4 billion run-rate to $24 billion by 2032, with its government business surpassing $10 billion by 2030.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry; the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 11.95% move in either direction.
Is PLTR a Good Stock to Buy?
Turning to Wall Street, analysts have a Hold consensus rating on Palantir Technologies stock based on two Buys, nine Holds, and two Sells assigned in the past three months, as indicated by the graphic below. The average PLTR stock price target is $96.58, implying downside potential of 18.46%.
