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On Tuesday, Palantir Technologies Inc . (NASDAQ:PLTR) saw its price target increased by DA Davidson from $100.00 to $115.00, while the firm maintained a Neutral rating on the stock. Currently trading at $123.77, near its 52-week high of $125.41, InvestingPro analysis indicates the stock is trading above its Fair Value. The adjustment follows Palantir’s report of a robust financial quarter, with revenue growth accelerating due to high demand, even in a period typically considered off-peak for the industry.
Palantir’s recent performance surpassed expectations, with a revenue beat of approximately $24 million for the quarter. The company maintains impressive gross profit margins of 80.25% and has achieved a 28.79% revenue growth over the last twelve months. The company’s year-over-year revenue growth accelerated to 39%, an increase from the previous quarter’s 36%. According to DA Davidson, this growth is largely driven by Palantir’s United States operations, which secured the majority of new customers during the quarter. InvestingPro data shows the company maintains a "GREAT" financial health score, with 18 additional ProTips available for subscribers.
The U.S. commercial sector of Palantir’s business experienced another strong quarter, posting a 75% year-over-year increase in revenue, excluding income from strategic commercial contracts. This growth is only slightly down from the 76% growth observed in the previous quarter. Revenue from these strategic commercial contracts totaled $5.1 million, aligning with management’s expectations. With a market capitalization of $292 billion, Palantir has established itself as a significant player in the technology sector.
Palantir’s successful quarter was further highlighted by the company landing a record number of deals worth over $1 million each. Despite concerns over recent tariff announcements, Palantir has continued to experience momentum in its business operations. The company’s total contract value in the U.S. commercial market reached a new high of $810 million, underscoring its strong position in the sector.
In other recent news, Palantir Technologies Inc. reported a strong financial performance for the first quarter of 2025, with a 39% year-over-year revenue increase, reaching $884 million. The company’s U.S. commercial revenue surged by 71%, contributing significantly to its overall growth. Palantir has also raised its full-year revenue guidance to between $3.890 billion and $3.902 billion, reflecting its positive outlook for the remainder of the year. Analyst firms have updated their outlooks on Palantir, with Morgan Stanley (NYSE:MS) raising its price target to $98, citing strong first-quarter performance, while Goldman Sachs increased its target to $90, acknowledging the company’s strategic positioning but maintaining a neutral rating due to valuation concerns.
Raymond (NSE:RYMD) James reaffirmed a Market Perform rating on Palantir, noting the company’s robust start to 2025 and its raised guidance. Despite these positive developments, Mizuho (NYSE:MFG) Securities expressed caution by maintaining an Underperform rating while raising the price target to $94, highlighting concerns over the company’s high valuation. Palantir’s strong results have been driven by its U.S. commercial and government segments, with significant contract values closed in the first quarter. The company’s focus on AI and enterprise autonomy continues to bolster its competitive edge, especially in government and commercial sectors. These recent developments underscore Palantir’s continued growth and strategic positioning in the market.
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