Key Takeaways
- Shares of PLTR declined Thursday as investors took profits following several days of post-earnings gains
- Second-quarter revenue reached $1.94 billion, representing a 92.8% year-over-year increase and exceeding forecasts by approximately $136 million
- The company’s adjusted earnings per share of $0.41 surpassed the Street’s $0.34 expectation
- Legendary investor Michael Burry revealed short bets against PLTR, cautioning about a possible market peak
- Wall Street’s average rating stands at “Moderate Buy” with a mean price objective of $190.73
Shares of Palantir (PLTR) were changing hands at $153.75 during Thursday’s session, retreating from recent peaks as market participants secured profits after an impressive earnings-driven advance. The data analytics company’s stock had climbed approximately 30% following Monday’s exceptional Q2 results before losing steam on Wednesday.
Palantir Technologies Inc., PLTR
The company’s second-quarter top line totaled $1.94 billion, marking a 92.8% jump from the same period last year and exceeding Wall Street’s $1.81 billion projection. Adjusted earnings per share of $0.41 handily beat the consensus forecast of $0.34.
Revenue from U.S. commercial clients skyrocketed 149% during the quarter. Government-related revenue climbed 90%. Company leadership attributed the growth to strong appetite for artificial intelligence sovereignty solutions.
Palantir also increased its full-year 2026 outlook for revenue, profitability, and operating cash flow. The firm delivered an adjusted operating margin approaching 62% alongside approximately $1.22 billion in free cash flow generation.
Wall Street Reactions
DA Davidson’s Gil Luria maintained his Buy stance while increasing his price objective from $175 to $200. Mizuho boosted its target to $215 alongside an Outperform rating. Deutsche Bank elevated PLTR to Buy status. Northland established a $200 target while Piper Sandler maintained an Overweight rating with a $230 price goal.
Conversely, Citigroup downgraded its stance from Buy to Market Perform. BNP Paribas Exane launched coverage with an Underperform rating. The aggregate analyst sentiment remains at “Moderate Buy” with an average price target of $190.73.
Cantor Fitzgerald also launched coverage with an Overweight rating during the week.
Cautionary Indicators
Prominent investor Michael Burry published commentary on Substack Wednesday suggesting the market could be “near a major top,” drawing comparisons to a potential 1987-style correction. He acknowledged short positions in both PLTR and Tesla.
Cathie Wood’s ARK offloaded roughly $6.4 million in PLTR shares following the earnings-related price surge.
Dynamic Advisor Solutions LLC reduced its PLTR holdings by 21.1% during Q2, disposing of 18,708 shares while maintaining 69,935 valued at approximately $8.16 million.
From a valuation perspective, PLTR currently trades at a price-to-earnings multiple near 135 with a market capitalization approaching $380 billion. Market observers highlight that investors are accepting an elevated premium for sustained accelerated expansion.
From a technical standpoint, PLTR currently trades 17.7% above both its 20-day and 50-day moving averages. The shares are positioned just 1.5% above their 200-day simple moving average at $152.44. Critical resistance exists at $162, while support appears around $148.
The stock’s 52-week trading band extends from $106.37 to $207.52. Institutional stakeholders control 45.65% of outstanding shares.
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