Back to top

Bull of the Day: Palantir Technologies (PLTR)

Read MoreHide Full Article

Key Takeaways

  • PLTR shares have been red-hot, gaining nearly 70% over the last three months.
  • Share strength has been led by strong quarterly results that have revealed a strong demand backdrop.
  • Earnings and revenue growth are expected to remain outsized for its FY26 and FY27.

Palantir Technologies (PLTR - Free Report) has become one of the biggest beneficiaries of the AI boom, with its software increasingly being deployed across both the commercial and government landscapes.

Earnings revisions have remained bullish, with the stock sporting the highly coveted Zacks Rank #1 (Strong Buy).

Zacks Investment Research
Image Source: Zacks Investment Research

PLTR’s Robust Results

Palantir’s recent results have continued to show red-hot momentum, with the company posting a double-beat relative to our consensus expectations in its latest print for the fifth consecutive time. Sales of $1.9 billion soared 92% YoY, whereas earnings climbed an even more impressive 140% from the same period last year.

Zacks Investment Research
Image Source: Zacks Investment Research

Palantir’s lucrative commercial opportunity stems from its Artificial Intelligence Platform (AIP), which allows customers to combine their existing data and operations with large language models and other generative AI capabilities.

U.S. commercial revenue soared 149% YoY in the above-mentioned release to $764 million, also growing by an impressive 28% sequentially. Future growth is underpinned by surging contract metrics, with U.S. commercial total contract value hitting a record $2.1 billion and growing 153% YoY, while U.S. commercial remaining deal value jumped 124% to $6.2 billion.

The company lifted its guidance across many metrics, now expecting FY26 revenue in a band of $8.150 - $8.158 billion, reflective of 82% YoY growth. U.S. commercial demand is also expected to remain red-hot, with PLTR upping the guidance to reflect 134% YoY growth.

Earnings are expected to see outsized growth amid the revenue surge, with current Zacks Consensus EPS estimates suggesting 115% YoY growth in FY26 and an additional 40% in FY27.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.

The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.

Palantir Technologies (PLTR - Free Report) would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy). 

Published in