Bullish indicating open at $55-$60, IPO prices at $37
DENVER - Data analytics company Palantir Technologies Inc. (NASDAQ:PLTR), whose stock has surged over 520% in the past year according to InvestingPro data, announced Tuesday a multi-year expansion of its partnership with Japanese insurance group SOMPO Holdings through their joint venture Palantir Technologies Japan KK.
The expanded collaboration builds on a relationship that began in 2020, when SOMPO first implemented Palantir’s Foundry operating system across its care facilities in Japan to support senior citizen care and reporting. The platform has since been extended to SOMPO Japan’s insurance claims processes, including fraud detection, claim triage, and ongoing monitoring. This expansion comes as Palantir maintains impressive gross profit margins of 80% and strong revenue growth of 39% over the last twelve months.
According to the press release, SOMPO is using Palantir’s AI technology to evaluate risk and make recommendations during the underwriting process, with an expected annual improvement in financial results of $10 million. InvestingPro analysis indicates the company is currently trading above its Fair Value, with 18 analysts recently revising their earnings expectations upward for the upcoming period.
"Palantir Foundry continues to grow in importance across all sectors of our business," said Mikio Okumura, Group Chief Executive Officer of SOMPO Holdings, in a statement. "This software continues to increase our efficiency and profitability."
Kevin Kawasaki, Global Head of Business Development at Palantir Technologies, noted that over 8,000 SOMPO employees in Japan actively use the Palantir platform.
This marks the second expansion of the agreement between the companies, following a $50 million expansion in 2023. The financial terms of the current expansion were not disclosed in the announcement.
Palantir Technologies, founded in 2003, specializes in data integration and analytics software used by government agencies and commercial enterprises. The company went public in September 2020.
In other recent news, Palantir Technologies reported strong second-quarter financial results, exceeding expectations with a 7% revenue beat and a 93% surge in U.S. commercial growth. The company also raised its full-year revenue guidance to a midpoint of $4.15 billion, surpassing consensus estimates of $4.05 billion, and increased its free cash flow expectation to $1.9 billion. Palantir’s second-quarter revenue reached $1.0 billion, exceeding consensus estimates of $939 million, with a notable 48% growth. The company maintained strong profitability, reporting an adjusted operating income of $464 million, above the consensus of $404 million, and improved its operating margin to 46%.
Analyst firms have responded to these results with various ratings and price target adjustments. Raymond James and William Blair both reiterated their Market Perform ratings for Palantir. Meanwhile, Cantor Fitzgerald raised its price target from $110 to $155, citing Palantir’s record-breaking performance in its U.S. Commercial segment. Baird also increased its price target from $100 to $170, noting the company’s eighth consecutive quarter of accelerating revenue growth.
Additionally, Unstructured, a data transformation company, joined Palantir’s FedStart program to expedite its federal compliance process. This collaboration is expected to aid Unstructured in achieving FedRAMP High and IL-5 compliance certifications more swiftly.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.