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Palantir Technologies Inc. (PLTR), headquartered in Denver, Colorado, is a company that builds and deploys software platforms to support the intelligence community in counterterrorism investigations and operations. Valued at $213 billion by market cap, the company manages software deployment across environments and offers access to large language models (LLMs) for analyzing both structured and unstructured data. The leading builder of operating systems is expected to announce its fiscal first-quarter earnings for 2025 after the market closes on Monday, May 5.
Ahead of the event, analysts expect PLTR to report a profit of $0.08 per share on a diluted basis, up 100% from $0.04 per share in the year-ago quarter. The company beat or matched the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
For the full year, analysts expect PLTR to report EPS of $0.32, up 300% from $0.08 in fiscal 2024. Its EPS is expected to rise 15.6% year over year to $0.37 in fiscal 2026.
PLTR stock has significantly outperformed the S&P 500’s ($SPX) 5.5% gains over the past 52 weeks, with shares up 348.2% during this period. Similarly, it substantially outperformed the Technology Select Sector SPDR Fund’s (XLK) marginal dip over the same time frame.
The impressive rally in Palantir's stock can be attributed to the growing demand for its AI software platform, which has been gaining traction with governments and businesses looking to integrate generative AI tools into their operations. Recent partnerships, such as NATO selecting Palantir's Maven Smart System, highlight the strong demand for the company's offerings. The company's ability to expand usage among commercial customers and win larger contracts from existing clients is driving margin improvement and solid unit economics. With the AI software platforms market expected to experience substantial growth in the coming years, Palantir is well-positioned to capture a larger share of the market and drive earnings growth. The company's accelerated growth following the launch of its AI software platform suggests that it has significant room for future expansion.
On Feb. 3, PLTR reported its Q4 results, and its shares closed up by 24% in the following trading session. Its revenue was $827.5 million, surpassing analyst estimates of $775 million. The company’s adjusted EPS of $0.14 exceeded analyst estimates of $0.11.
Analysts’ consensus opinion on PLTR stock is cautious, with a “Hold” rating overall. Out of 20 analysts covering the stock, three advise a “Strong Buy” rating, 12 give a “Hold,” one suggests a “Moderate Sell,” and four recommend a “Strong Sell.” While PLTR currently trades above its mean price target of $84, the Street-high price target of $125 suggests a notable upside potential of 33%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
