Palantir Earnings on Deck With Stock (PLTR) Moving Higher: What To Expect

Palantir Technologies (PLTR) is set to release its second-quarter earnings after market close today, and the stakes are high. Riding a wave of AI optimism and supported by lucrative government contracts, Palantir's stock price has been one of the leaders this year, adding 105% since the turn of 2025, and a rather astonishing 540% over the past 12 months.

With bullish sentiment at fever pitch, the question now is whether the company can deliver on its promises and justify its premium valuation.

Analysts are projecting an EPS of $0.14 for the quarter, a substantial increase on the $0.09 posted in the same period Y/Y. This optimism stems from Palantir's strong revenue growth in both its commercial and government sectors, with revenue expected to hit $939.45milion on the period, reflecting a 38.54% growth rate.

Palantir's business is increasingly intertwined with government contracts, including a recent $10 billion deal with U.S. Army.

This alignment has been a significant driver of its share price surge, making it one of the best-performing stocks in the S&P 500 this year.

However, Palantir’s valuation remains a key concern. With a trailing P/E of 574 and a forward P/E of 238, the stock is trading at a significant premium to its peers.

Mizuho Securities, while upgrading PLTR to “Neutral,” still acknowledges the high valuation, noting that it remains significantly above industry norms. Any disappointment in earnings or guidance could therefore trigger a substantial correction.

“We are delivering the operating system for the modern enterprise in the era of AI.”

The markets will be particularly focused on Palantir's ability to maintain its growth trajectory and expand its presence in both the commercial and government sectors, with the average price target on the street currently sitting more than $40 below the current price action ($113.54 vs $154.27).

That being so, Loop Capital reaffirmed their Buy rating on the stock last week in anticipation of earnings, increasing their price target to $178. The firm see PLTR as showing leadership in the AI sector, and expect a beat-and-raise quarter.

Expectations are clearly high leading in to earnings, yet Palantir usually delivers. In the month leading in, 11 analysts have revised EPS estimates upwards, with 2 moving to the downside. The stock price is moving higher in the pre-market, up 2.27% at $157.77, potentially setting up another run towards highs ($160.89) even before earnings print. A busy day awaits.