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On Tuesday, Palantir Technologies Inc . (NASDAQ:PLTR) received an increased price target of $140, up from $120, from Wedbush, while the firm maintained an Outperform rating on the stock. The revision follows Palantir’s first-quarter fiscal year 2025 results, which showcased significant beats and an increased full-year guidance. According to InvestingPro data, the company maintains impressive gross profit margins of 80.25% and has demonstrated strong revenue growth of 28.79% over the last twelve months. Palantir’s total revenue for the quarter was reported at $883.9 million, a 39% year-over-year increase, surpassing the expected $862.2 million. This growth was notably driven by the U.S. commercial revenue segment, which achieved a $1 billion annual run rate and a 71% year-over-year growth. While the company’s growth trajectory remains strong, InvestingPro analysis suggests the stock is trading above its Fair Value, with 18 additional exclusive ProTips available for subscribers.
The company’s U.S. Commercial Total (EPA:TTEF) Contract Value (TCV) surged by 183% year-over-year to $810.0 million, while the remaining deal value in the U.S. climbed to $2.32 billion, marking a 127% year-over-year and 30% quarter-over-quarter increase. Palantir’s customer count grew by 39% year-over-year, with the company securing 139 deals worth at least $1 million and 31 deals exceeding $10 million. The firm highlighted Palantir’s successful ’land and expand’ strategy, which has been gaining traction.
Palantir’s U.S. Government revenue, which came in at $373.0 million, saw a 45% year-over-year increase, indicating a reacceleration from the previous quarter’s 42% growth. The company’s recent partnership with NATO was noted as a sign of its expanding influence in Europe. Palantir’s adjusted operating income was reported at $390.7 million, yielding a margin of 44.2%, which was above the anticipated $360.4 million and a margin of 41.8%. Furthermore, Palantir’s free cash flow stood at $370.4 million, significantly exceeding the forecast of $254.3 million.
Wedbush’s decision to raise the price target reflects their heightened confidence in Palantir’s growth trajectory, emphasizing the company’s success across both enterprise and federal sectors. The research firm views Palantir’s Artificial Intelligence Product (AIP) moat as unmatched and identifies the company as a key player in the ongoing AI revolution. They project Palantir as a potential trillion-dollar market cap company within the next three years. With a current market capitalization of $292 billion and a beta of 2.68, investors can access comprehensive valuation metrics and detailed analysis through InvestingPro’s exclusive Research Report, part of its coverage of over 1,400 US stocks.
In other recent news, Palantir Technologies has reported strong financial results, with revenue growth accelerating to 39% year-over-year, surpassing expectations by approximately $24 million for the quarter. The U.S. commercial sector showed a remarkable 75% increase in revenue, contributing significantly to the company’s growth. Palantir’s government business also experienced a 45% year-over-year revenue increase, closing numerous high-value deals. The company’s total contract value in the U.S. commercial market reached $810 million, marking a significant milestone.
In addition to these results, Palantir has announced a strategic partnership with xAI and TWG Global to enhance AI integration in financial services. This collaboration aims to improve market competitiveness through AI-driven solutions, focusing on tangible business outcomes. Analyst firms have reacted to these developments with various stock price target adjustments. DA Davidson increased Palantir’s target to $115, while Morgan Stanley (NYSE:MS) raised it to $98, and Goldman Sachs updated its target to $90, each maintaining a neutral stance on the stock. Raymond (NSE:RYMD) James continues to hold a Market Perform rating, acknowledging Palantir’s strong start to 2025 and increased guidance. These recent developments underscore Palantir’s robust position in both the commercial and government sectors.
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