Palantir Stock Is Hitting All-Time Highs Tuesday: What's Going On?

Palantir Technologies Inc PLTR shares are hitting all-time highs on Tuesday following the company’s better-than-expected results for the second quarter. Multiple analysts also raised price targets following the print.

What To Know: Palantir beat analyst estimates on the top and bottom lines for the eighth straight quarter when it reported second-quarter revenue of $1.004 billion versus estimates of $939.71 million, and adjusted earnings per share of 16 cents versus estimates of 14 cents.

Revenue was up 48% year-over-year as U.S. Commercial revenue jumped 93% year-over-year and U.S. Government revenue increased 53% year-over-year.

“This is still only the beginning of something much larger and, we believe, even more significant,” Alex Karp, co-founder and CEO of Palantir, said in a letter to shareholders.

“With continued execution, and a focus on what matters and a near complete disinterest in what does not, we believe that Palantir will become the dominant software company of the future.”

Palantir's customer count grew 43% year-over-year. The company generated $569 million in adjusted free cash flow in the quarter and ended the period with $6 billion in cash, cash equivalents and short-term U.S. treasury securities.

Palantir said it expects third-quarter revenue of $1.083 billion to $1.087 billion versus estimates of $981.1 million. The company also raised its full-year guidance to a range of $4.14 billion to $4.15 billion versus estimates of $3.9 billion.

"We are guiding to the highest sequential quarterly revenue growth in our company's history, representing 50% year-over-year growth,” Karp said.

Analysts React: Following the company’s quarterly results, multiple analysts lifted price targets.

Deutsche Bank analyst Brad Zelnick upgraded Palantir from Sell to Hold and raised the price target from $80 to $160. Piper Sandler analyst Brent Bracelin maintained an Overweight and raised the price target from $170 to $182.

Cantor Fitzgerald analyst Thomas Blakey maintained a Neutral and raised the price target from $110 to $155, UBS analyst Karl Keirstead raised the price target from $110 to $165 and Wedbush’s Dan Ives lifted his price target to a Street-high $200.

Ives highlighted “continued hyper growth demand” for Palantir’s AI products and pointed to the “unique value” the company brings to the AI revolution.

PLTR Price Action: Palantir shares were up 8.0% at $173.56 at the time of publication Tuesday, according to Benzinga Pro.

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