TLDR
- Palantir stock rose about 10% on Friday, extending post-earnings gains from its strong Q2 report
- Q2 revenue hit $1.94 billion, up 92.8% year over year, beating the $1.81 billion consensus estimate
- Bank of America reiterated its Buy rating and raised its price target to $255, implying around 50% upside
- EPS came in at $0.41, beating the $0.34 estimate; analysts now forecast $1.26 EPS for the full year
- Valuation risks remain, with PLTR trading at a P/E of 147 and insiders selling over $150 million in stock over the past 90 days
Palantir (PLTR) opened at $172.01 on Friday, climbing roughly 10% as investors continued to react to the company’s blowout second-quarter results reported on August 3rd.
Palantir Technologies Inc., PLTR
Q2 revenue came in at $1.94 billion, up 92.8% from the same period last year and well above the $1.81 billion Wall Street had expected. EPS of $0.41 topped the $0.34 consensus by seven cents.
The stock’s move on Friday was partly driven by short covering. Bearish investors took heavy losses after the earnings release, and broader strength in tech helped push the stock higher.
Bank of America reiterated its Buy rating on PLTR and raised its price target to $255. That implies roughly 50% upside from recent trading levels.
The bank highlighted Palantir’s AI strategy, its expanding commercial business, and long-standing government contracts as key factors in its competitive position.
Sovereign AI and Commercial Growth
Bank of America also pointed to Palantir’s growing role in sovereign AI, where organizations want to deploy AI while keeping control of sensitive data and workflows.
On the commercial side, the bank noted larger customer contracts and increased spending from existing clients. That prompted the firm to raise its long-term earnings forecasts.
Northland Securities also lifted its FY2026 EPS forecast to $1.24 from $1.08 and its FY2027 estimate to $1.53 from $1.39, suggesting the earnings improvement looks durable.
A weaker-than-expected July jobs report added fuel to the rally. Softer jobs data reduced expectations for a near-term Fed rate hike, which tends to support high-growth software valuations.
Valuation and Insider Activity
The stock is not without risks. PLTR trades at a P/E ratio of 147, a level that requires continued strong growth to justify.
Insiders sold more than 1.1 million shares worth approximately $150.7 million over the past 90 days. Most of those sales were to cover tax obligations from vested equity awards.
Everhart Financial Group trimmed its stake by 17.5% in Q2, selling 4,970 shares and retaining 23,358 shares valued at around $2.7 million.
ARK Invest also trimmed its PLTR position after the rally, while Michael Burry continues to hold a bearish position on the stock.
Analyst ratings currently stand at two Strong Buys, 20 Buys, 11 Holds, and three Sells. The consensus average price target sits at $190.73.
Mizuho raised its target from $185 to $215 with an outperform rating. Oppenheimer moved in the opposite direction, cutting its rating from outperform to market perform.
PLTR’s 12-month low is $106.37. Its 12-month high is $207.52. The stock’s 50-day moving average sits at $131.76.
The stock has a market cap of $412.36 billion and a beta of 1.59. Return on equity for the quarter was 30.57%, with a net margin of 49.01%.
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