Palantir stock jumps as William Blair reiterates Market Perform rating

Published 05/08/2025, 18:20
Palantir stock jumps as William Blair reiterates Market Perform rating

Investing.com - Palantir Technologies Inc . (NASDAQ:PLTR) shares rose over 3% after William Blair reiterated its Market Perform rating following the company’s impressive second-quarter results. The company, which has delivered a remarkable 567% return over the past year, continues to demonstrate strong momentum with a "GREAT" financial health score according to InvestingPro analysis.

Palantir reported second-quarter revenue of $1.0 billion, exceeding consensus estimates of $939 million and representing 48% growth, a significant acceleration from the 39% growth recorded in the March quarter. The company maintained strong profitability with an adjusted operating income of $464 million, above consensus of $404 million, and improved its operating margin to 46% from 44% in the previous quarter. With an impressive gross profit margin of 80%, Palantir demonstrates robust operational efficiency. InvestingPro subscribers can access 20+ additional key metrics and insights about Palantir’s financial performance.

U.S. commercial revenue growth accelerated to 93% from 71% in the previous quarter, while the U.S. government business achieved its fastest growth rate since the second quarter of 2021. The company’s Maven Smart System program continues to be a major contributor to government segment growth, though international commercial segment struggles persisted. InvestingPro data shows the company maintains a healthy current ratio of 6.49, indicating strong liquidity to support its growth initiatives.

Palantir’s bookings increased 140% compared to last year, with second-quarter bookings reaching $135 million in ARR, the highest mark in the company’s history according to William Blair’s Dotted Line tracker. The firm noted that Palantir is clearly benefiting from AI industry momentum across both government and commercial customer bases.

Following these results, Palantir raised its full-year guidance, now expecting 45% revenue growth for the year, up from its previous forecast of 36%, and increased its free cash flow guidance by $200 million to $1.9 billion. Since William Blair’s March 5 upgrade to Market Perform, Palantir shares have increased by 91%, compared to the Nasdaq 100’s 14% increase. Trading near its 52-week high, Palantir currently appears to be trading above its Fair Value based on comprehensive InvestingPro analysis, which includes detailed valuation metrics and growth projections available in the Pro Research Report.

In other recent news, Palantir Technologies Inc. has experienced several analyst updates following its impressive earnings and revenue performance. The company reported an eighth consecutive quarter of accelerating revenue growth, with a remarkable increase to 48% in the second quarter, as noted by analysts from Baird and UBS. Palantir’s U.S. Commercial segment also exceeded expectations by 15%, contributing to this growth. Analysts have responded by raising their price targets for the company. Cantor Fitzgerald increased its target to $155, highlighting Palantir’s record-breaking performance. Baird raised its target to $170, while Loop Capital set a new target of $180, citing strong AI growth. UBS also increased its target to $165, reflecting Palantir’s significant revenue scale. Additionally, Goldman Sachs raised its price target to $141, acknowledging the company’s strategic role in enterprise AI initiatives. These developments underscore Palantir’s strong market position and growth trajectory.

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