Palantir Stock Price Forecasts Rise After Q2 Earnings

Palantir stock has not participated in the AI rally this year. While other software stocks such as CrowdStrike and Snowflake have moved higher, it has traded down.

Things could be about to change, however. Because the company just produced another blowout earnings report and Wall Street analysts are raising their price targets for the stock.

Huge Growth in Q2

For the second quarter¹ of 2026, Palantir’s revenue was $1.935 billion, up 93% year-over-year and ahead of the $1.81 billion² forecast. US revenue amounted to $1.573 billion, up 115% year-over-year and 23% quarter-over-quarter.

Breaking the US revenue figure down, $764 million came from commercial clients, an increase of 149% year-over-year. Meanwhile, $809 million came from US government agencies, an increase of 90%.

In terms of profitability and cash flow, adjusted income from operations was $1.194 billion, representing a 62% margin, while adjusted earnings per share was $0.41 per share, compared with analysts’ estimate of $0.34² per share. Adjusted free cash flow was $1.220 billion, representing a 63% margin.

As in previous quarters, the company’s “rule of 40” score was very high. This came in at 155%.

Operational Highlights

During the quarter, Palantir closed 220 deals worth $1 million or more. Of these, 98 deals were worth $5 million or more while 73 deals were worth $10 million or more.

Closed total contract value (TCV) was $3.373 billion. This was up 49% year-over-year.

Full-Year Guidance Raised

On the back of this performance, the company raised its full-year guidance. It now expects revenue of between $8.150 billion and $8.158 billion versus previous guidance of between $7.650 and $7.662 billion.

It also expects adjusted income from operations to be between $4.889 billion and $4.897 billion. Previous guidance here was $4.440 billion to $4.452 billion.

Earnings Call Insights

On the earnings call², management explained that with Palantir, customers do not need to worry about giving control of their data and workflows to frontier AI labs. It noted that Palantir’s products allow customers to switch AI models.

In terms of growth, CEO Alex Karp said that he is driving the business to grow at a rate equal or above to the current level of growth in the US commercial segment for the next 18 months. He acknowledged that this is a high goal, but he believes that it’s achievable.

Higher Price Targets for Palantir

Since Palantir’s Q2 earnings, a number of Wall Street firms have increased their price targets for the stock. For example, Citi has gone from $200 to $245 while Mizuho has gone from $185 to $215³.

At present, the average 12-month price target is $182³, which is about 20%⁴ above the current stock price. Given this lofty share price forecast, Palantir could be a stock to keep an eye on.

Footnotes:

¹Palantir, Palantir Reports Q2 2026 U.S. Comm Revenue Growth of 149% Y/Y and Revenue Growth of 93% Y/Y; Raises FY 2026 Revenue Guidance to 82% Y/Y Growth and U.S. Comm Revenue Guidance to 134% Y/Y, Crushing Consensus Expectations, as of August 3, 2026

²Investing.com, Earnings call transcript: Palantir tops Q2 2026 forecasts, shares jump after hours, as of August 3,2026

³Investing.com, as of August 4, 2026

⁴Google Finance, as of August 4, 2026