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LivestreamMenuAnalysts on Wall Street reaped praise on Palantir Technologies for its second-quarter report, stating that the company is building a successful strategy on artificial intelligence. The AI software company posted an earnings and revenue beat , with the top line. Revenue was up more than 90% compared to a year ago, while net income soared 125% in that time. Commercial revenue for Palantir surge 149% compared to a year ago too, showcasing that the company’s customer base is diversifying beyond the U.S. government, revenues from which still outpaced commercial totals. The stock was surging 16% in premarket trading Tuesday. Wall Street firms broadly reiterated their previous ratings on Palantir’s stock, but Deutsche Bank came out on Tuesday with an upgrade on shares to buy from hold. PLTR YTD mountain Palantir Technologies year-to-date. “The quarter further reinforces our view that Palantir is operating several steps ahead of the rest of Software in converting AI demand into real customer value,” wrote analyst Brad Zelnick in a note. “Palantir increasingly looks like a time traveler, having already arrived in the AI future others are still aspiring towards.” While investors are pouring into Palantir shares after the earnings results, the stock has struggled in 2026 — down 29% as of Monday’s close — as investors worried more broadly about how the software industry may be disrupted by AI. But it’s Palantir’s AI push that could turn the stock around, according to Goldman Sachs. “We believe the key to unlocking stock outperformance post a YTD pullback will be Palantir’s ability to capture incremental AI business at enterprises that are diversifying their model strategies toward a balance of SLMs, open source/weight, and frontier models, on top of Palantir’s already-proven ability to expand within existing customers,” wrote analyst Gabriela Borges in a note. Deutsche Bank: Buy, $200 The bank’s rating has been raised from hold. “Importantly, the quarter showcased Palantir’s Sovereign AI capabilities, which we believe are increasingly resonating as customers realize that AI value generation is not simply about consuming more tokens, but about converting those tokens into governed, measurable outcomes. Management framed AIP as the environment where customers can build, deploy, evaluate, and continuously improve AI workflows inside their own security boundary, and we are very intrigued by tools like AIP Evolve helping optimize model selection, further differentiating Palantir as a partner to enterprise customers.” Baird: Outperform, $200 “With strong forward-looking indicators (US commercial TCV and RDV re-inflecting), including record-setting large deal momentum (73 $10m+ deals), the company raised full-year guidance from 71% total revenue growth to 82%. We remain positive on the strong revenue and FCF, along with impressive productivity/efficiency, and view its current EV/FCF multiple as attractive given expected growth and further upside to estimates.” Mizuho: Outperform, $215 The bank’s price target, up from $185, represents a 71% gain from Monday’s close. “We reiterate our view that PLTR is in a category of one, delivering total revenue growth, acceleration, and margin expansion at scale unlike anything else in software. We also remain bullish on PLTR’s U.S. Commercial business, fueled by rising enterprise adoption of AIP and growing urgency around operationalizing AI. And more broadly, we remain steadfast in our view that PLTR is increasingly well-positioned to benefit from long-term trends in AI, government digital transformation, and industrial modernization.” UBS: Buy, $220 The bank’s price target, up from $200, implies a 75% rise from Monday’s close. “At ~44x our revised 2027e FCF, we believe that Palantir shares are undervalued relative to its medium-term growth (we’re estimating a 3-year CAGR of ~63%) and profitability. We’re raising our PT from $200 to $220, based on ~46x our increased 2028 FCF estimate (prior 72x CY27e), a justified premium to the high-growth peer group.” Truist: Buy, $223 “Palantir is seeing significant demand for sovereign AI and views the opportunity as an incremental TAM expander. US Commercial revenue grew a significant 149% y/y to $764M as management noted its customers increasingly want to protect their proprietary data from the AI model providers. We see significant opportunity for PLTR to gain share as customers increasingly seek to retain ownership of their data, workflows, reasoning traces, and model weights, rather than contributing enterprise intelligence back to foundation model providers.” Citi: Buy, $245 The bank’s price target, up from $200, implies an almost 95% gain from Monday’s close. “Palantir increasingly appears to be benefitting from enterprise demand for ‘AI sovereignty’ with use cases around model evaluation, fine-tuning, as opposed to traditional data integration. On the back of stronger bookings, backlog and guidance, we are taking estimates materially higher.” Bank of America: Buy, $255 “We view the strengthening Palantir (PLTR) results as a reflection of a successful AI strategy that focuses on providing the right infrastructure to maximize its customers’ results. While FDEs and Ontologies are gaining popularity across software providers, Palantir’s secret sauce starts with their deep partnerships with customers and extends to how they price their solutions based on measurable outcomes and value generation.” Cantor Fitzgerald: Neutral, $156 The firm’s price target, up from $138, indicates a 24% gain from Monday’s close. “Management expects momentum to continue, delivering its largest-ever CY raise for C26 vs prior guide and commented on the call that it aims to grow the total business in line with US Commercial (current total/US Commercial growth rates 93%/149%) over the next 18 months, likely driving C27/C28 forecasts higher. This growth, driven by US Commercial, is supported by expectations for continued NDR expansion as both large and relatively smaller new customers broadly continue to expand use cases on the platform as Palantir delivers value from tokens.” Goldman Sachs: Neutral, $204 “Enterprise AI success increasingly depends on operationalizing AI within existing workflows while maintaining control over data, logic, and intellectual property (or sovereign AI). Ongoing industry conversations lead us to be incrementally positive on the stock because of this next growth catalyst, although we continue to evaluate the competitive environment.” Morgan Stanley: Equal weight, $205 “With 2Q results Palantir has now accelerated revenue growth every single quarter for 3 years running – a remarkable achievement especially given that operating margin has expanded from 25% to 60% over the interim period. Unlike 1Q26, both revenue and bookings metrics confirmed that demand remains at extraordinary levels.” RBC Capital Markets: Underperform, $90 “Q2 was solid as Total Revenue (+93% YoY, ~6.7% above cons.), Adj. Operating Margin (61.7%), and Adj. EPS ($0.41) all beat cons. By segment, Total Commercial Revenue (+110% YoY) beat cons. by 5.5%, and Total Government Revenue (+79% YoY) beat cons. by 8.1%… Stepping back, Q2 was strong, but we continue to have concerns around the sustainability of growth/growing competition.”Read More
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