Palantir Technologies reported adjusted earnings of 44 cents per share, surpassing the expected 41 cents, and revenue of $2.31 billion, exceeding the consensus of $2.18 billion. Notably, U.S. commercial revenue more than doubled to $984 million, marking a significant milestone as it outpaced U.S. government revenue for the first time.
However, the company faced challenges with lower total contract value per booking and non-U.S. commercial booking growth, leading to a more than 7% decline in shares during premarket trading. Analysts from William Blair, Deutsche Bank, Bank of America, UBS, JPMorgan, Morgan Stanley, and Citi have expressed bullish sentiments, with price targets ranging from $200 to $262.
They highlight Palantir's strong growth trajectory, particularly in AI-driven solutions, and its unique position in the enterprise software market. Despite some concerns about bookings metrics, the overall outlook remains positive, with expectations for continued elevated revenue growth in both commercial and government sectors