Palantir Technologies (NASDAQ:PLTR) Releases Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Palantir Technologies (NASDAQ:PLTR) released its quarterly earnings data on Monday. The company reported $0.41 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.07, FiscalAI reports. The business had revenue of $1.94 billion for the quarter, compared to analyst estimates of $1.81 billion. Palantir Technologies had a return on equity of 32.90% and a net margin of 49.01%.Palantir Technologies’s revenue was up 92.8% compared to the same quarter last year. During the same period last year, the firm posted $0.16 earnings per share.

Here are the key takeaways from Palantir Technologies’ conference call:

• Positive Sentiment: Palantir reported record Q2 results, including 93% year-over-year revenue growth to $1.935 billion, $1.22 billion in adjusted free cash flow, and a 155% Rule of 40 score.
• Positive Sentiment: U.S. commercial revenue accelerated 149% year over year and 28% sequentially, while U.S. government revenue grew 90% year over year; record bookings and a 157% net dollar retention rate point to strong customer expansion.
• Positive Sentiment: Management raised its full-year 2026 revenue outlook to approximately $8.15 billion-$8.158 billion and U.S. commercial revenue guidance to more than $3.424 billion, citing accelerating demand for its sovereign AI platform.
• Neutral Sentiment: Palantir emphasized that its AIP platform, forward-deployed engineers, model flexibility, and customer-specific benchmarks are designed to convert AI usage into measurable operational value and protect customers’ proprietary data and model weights.
• Negative Sentiment: Adjusted gross margin was pressured by higher cloud-hosting costs for a government customer, and management expects a significant third-quarter increase in expenses tied to seasonal hiring and product and marketing investments.

Palantir Technologies Trading Down 1.8%

PLTR stock traded down $3.00 during midday trading on Wednesday, hitting $159.66. The stock had a trading volume of 33,115,042 shares, compared to its average volume of 46,792,527. The firm has a market cap of $382.75 billion, a P/E ratio of 179.40, a price-to-earnings-growth ratio of 2.01 and a beta of 1.59. The business has a fifty day moving average price of $130.68 and a two-hundred day moving average price of $139.93. Palantir Technologies has a 1-year low of $106.37 and a 1-year high of $207.52.

Analyst Ratings Changes

PLTR has been the subject of several research analyst reports. Citigroup downgraded shares of Palantir Technologies from a “buy” rating to a “market perform” rating in a report on Tuesday. Royal Bank Of Canada restated an “underperform” rating and set a $90.00 price objective on shares of Palantir Technologies in a research report on Friday. Rosenblatt Securities reiterated a “buy” rating and issued a $225.00 price objective on shares of Palantir Technologies in a report on Thursday, July 30th. William Blair began coverage on shares of Palantir Technologies in a research report on Tuesday. They set a “neutral” rating on the stock. Finally, Piper Sandler restated an “overweight” rating and issued a $230.00 price target on shares of Palantir Technologies in a research report on Tuesday. Two analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, eleven have issued a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $190.73.

Key Headlines Impacting Palantir Technologies

Here are the key news stories impacting Palantir Technologies this week:

• Positive Sentiment: Blowout Q2 results: Palantir reported adjusted EPS of $0.41 versus the $0.34 consensus estimate, while revenue rose 93% year over year to approximately $1.94 billion, exceeding expectations of about $1.81 billion. Palantir Q2 earnings report
• Positive Sentiment: Commercial growth is accelerating: U.S. commercial revenue surged 149%, helping drive total U.S. revenue growth of 115%. Investors viewed the results as evidence that Palantir’s Artificial Intelligence Platform is converting strong AI demand into measurable customer spending. Palantir raises forecast on strong demand
• Positive Sentiment: Guidance was raised materially: Palantir now expects roughly $8.15 billion to $8.16 billion in 2026 revenue, above the approximately $7.7 billion consensus, and guided to at least 134% growth in U.S. commercial revenue. Third-quarter revenue guidance of about $2.16 billion also topped expectations. Palantir lifts revenue guidance
• Positive Sentiment: Profitability and cash flow strengthened: Reports highlighted a 62% adjusted operating margin, approximately $1.22 billion in free cash flow, and more than $9 billion in cash and short-term Treasuries. The combination of growth and margins helped ease concerns that AI expansion would require heavy capital spending.
• Positive Sentiment: Analysts became more constructive: Deutsche Bank upgraded PLTR to Buy, while Northland raised its price target to $200 and Piper Sandler reiterated an Overweight rating with a $230 target. The earnings surprise also forced short sellers to cover positions, reportedly creating roughly $3 billion in paper losses. Analyst upgrade
• Neutral Sentiment: Strategic positioning: Palantir’s “sovereign AI” pitch—giving enterprises and governments greater control over data, models, and operations—continues to differentiate it from frontier AI labs and traditional software competitors. A new partnership with Mercury Systems also targets defense supply-chain automation.
• Negative Sentiment: Valuation remains a major risk: With a very high earnings multiple and shares near a key technical resistance area, some analysts warn that exceptional growth may already be priced in. Profit-taking, including ARK’s reported sale of about $6.4 million in PLTR shares, could add volatility. ARK sells Palantir shares

Insider Transactions at Palantir Technologies

In other Palantir Technologies news, insider David A. Glazer sold 17,128 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $136.04, for a total value of $2,330,093.12. Following the completion of the sale, the insider owned 375,242 shares of the company’s stock, valued at approximately $51,047,921.68. This trade represents a 4.37% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Alexander C. Karp sold 397,744 shares of the business’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $136.04, for a total value of $54,109,093.76. Following the sale, the insider owned 6,432,258 shares of the company’s stock, valued at approximately $875,044,378.32. This represents a 5.82% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 1,112,270 shares of company stock valued at $150,247,785. 9.53% of the stock is owned by insiders.

Institutional Trading of Palantir Technologies

Hedge funds have recently bought and sold shares of the business. Wexford Capital LP bought a new position in Palantir Technologies in the 3rd quarter valued at about $36,000. Wiser Advisor Group LLC bought a new position in Palantir Technologies during the 3rd quarter valued at $40,000. Wealth Watch Advisors INC purchased a new position in Palantir Technologies during the 3rd quarter worth $44,000. Wilkerson Advisory Group LLC purchased a new position in Palantir Technologies during the 4th quarter worth $53,000. Finally, McMillan Office Inc. bought a new stake in shares of Palantir Technologies in the 4th quarter worth $60,000. Institutional investors and hedge funds own 45.65% of the company’s stock.

About Palantir Technologies

Palantir Technologies is a software company that develops data integration, analytics and operational decision-making platforms for government and commercial customers. Founded in 2003 by a team that included Alex Karp and Peter Thiel, Palantir has grown into a provider of enterprise-scale software designed to help organizations integrate disparate data sources, build analytic models and drive operational workflows. The company went public in 2020 and continues to position its products around large, complex data projects where security, provenance and real-time collaboration are important.

Palantir’s product portfolio centers on a small number of core platforms.