Palantir Q2 Earnings Loom--Should You Buy, Hold or Sell?
Aug 4 - Palantir Technologies PLTR is scheduled to release its fiscal second?quarter 2025 results on Monday after the market close. Investors are watching the software company's growing U.S. government contracts and high valuation as it heads into the report.
The company recently signed a long?term enterprise agreement with the U.S. Army valued at up to $10 billion over 10 years. The deal consolidates 75 existing contracts into one and is expected to boost military software and data?analysis capabilities. If fully realized, the agreement could add an average of about $250 million in quarterly revenue, providing a meaningful lift to Palantir's government business.
Analysts note that Palantir often guides conservatively and then posts modest revenue beats. Consensus estimates call for about $937 million in second?quarter revenue. A similar surprise to past quarters could support its premium valuation, which currently trades at more than 250 times forward earnings.
Palantir's U.S. government revenue stood at $1.3 billion on a trailing?12?month basis, and some market projections see that figure growing sharply through the decade. However, the stock's elevated multiple leaves limited room for disappointment if earnings do not rise in step with expectations.
Shares of Palantir have climbed in recent weeks amid optimism over the Army deal and speculation of another strong quarter. Traders will be watching the company's guidance for the second half of fiscal 2025 for signs that growth momentum can continue.
Is PLTR Stock a Buy or Sell?
Based on the one year price targets offered by 21 analysts, the average target price for Palantir Technologies Inc is $115.48 with a high estimate of $178.00 and a low estimate of $40.00. The average target implies a downside of -25.14% from the current price of $154.27.
Based on the consensus recommendation from 25 brokerage firms, Palantir Technologies Inc's PLTR average brokerage recommendation is currently 2.8, indicating a "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.