Key Takeaways
- Palantir shares declined Thursday as traders secured gains following a robust earnings-driven rally spanning several days
- Second quarter revenue reached $1.94 billion, representing a 92.8% annual increase and exceeding projections by approximately $136 million
- Adjusted earnings per share of $0.41 surpassed the analyst consensus of $0.34
- Prominent investor Michael Burry revealed short positions in PLTR while cautioning about a possible market peak
- Wall Street maintains a “Moderate Buy” rating with a mean price target of $190.73
Shares of Palantir (PLTR) were changing hands at $153.75 during Thursday’s session, retreating from recent peaks as market participants captured profits after an impressive earnings-fueled advance. The technology stock had climbed approximately 30% following its exceptional second quarter report released Monday, before losing steam on Wednesday.
Palantir Technologies Inc., PLTR
The company reported second quarter revenue of $1.94 billion, marking a 92.8% jump from the prior year period and eclipsing the Street’s expectation of $1.81 billion. Adjusted earnings per share reached $0.41, handily topping the consensus forecast of $0.34.
Domestic commercial revenue skyrocketed 149% during the three-month period. Government segment revenue climbed 90%. Leadership attributed the robust performance to increasing demand for AI sovereignty solutions.
Palantir additionally elevated its full-year 2026 projections across revenue, profitability, and cash flow metrics. The data analytics firm delivered an adjusted operating margin hovering around 62% alongside approximately $1.22 billion in free cash flow generation.
Wall Street Reactions
DA Davidson analyst Gil Luria maintained his Buy recommendation while increasing his price objective from $175 to $200. Mizuho elevated its target to $215 alongside an Outperform designation. Deutsche Bank upgraded the stock to Buy status. Northland established a $200 price target while Piper Sandler maintained its Overweight stance with a $230 objective.
Conversely, Citigroup downgraded its recommendation from Buy to Market Perform. BNP Paribas Exane launched coverage with an Underperform rating. The aggregate analyst outlook stands at “Moderate Buy” with an average price projection of $190.73.
Cantor Fitzgerald also launched coverage this week, assigning an Overweight rating.
Cautionary Indicators
Hedge fund manager Michael Burry published on Substack Wednesday indicating his belief that markets could be “near a major top,” drawing comparisons to a potential 1987-style correction. He acknowledged maintaining short positions in both PLTR and Tesla.
Cathie Wood’s ARK divested roughly $6.4 million in PLTR shares following the post-earnings surge.
Dynamic Advisor Solutions LLC reduced its PLTR holdings by 21.1% during the second quarter, liquidating 18,708 shares while maintaining 69,935 units valued at approximately $8.16 million.
From a valuation perspective, PLTR currently commands a price-to-earnings multiple of roughly 135 with a market capitalization approaching $380 billion. Wall Street observers highlight that investors are accepting a significant premium for sustained high-velocity expansion.
From a technical standpoint, PLTR trades 17.7% above both its 20-day and 50-day moving averages. The equity hovers just 1.5% above its 200-day simple moving average at $152.44. Critical resistance emerges at $162, while support materializes around the $148 level.
The stock’s 52-week trading range extends from $106.37 to $207.52. Institutional shareholders collectively control 45.65% of outstanding shares.
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