Palantir's Revenue Growth Outpaces Expectations, Analysts Upgrade to Neutral

Mizuho Securities has upgraded Palantir from Underperform to Neutral, citing stronger-than-expected revenue growth in both commercial and government sectors. The firm raised its price target to $135 from $116, but cautioned that Palantir's valuation multiple is above peers and may face reversion pressure. Palantir is set to report Q2 results on August 4, with consensus calling for 39-40% YoY revenue growth.

Title: Mizuho Securities Upgrades Palantir to Neutral Amid Strong Revenue Growth

Mizuho Securities has upgraded Palantir Technologies (PLTR) to 'Neutral' from 'Underperform', citing robust revenue growth in both commercial and government sectors. The firm raised its price target to $135 from $116, but warned that Palantir's valuation multiple remains significantly above industry peers and may face reversion pressure [1].

Palantir is expected to report its Q2 earnings on August 4, with consensus estimates calling for a 39-40% year-over-year (YoY) revenue growth. The company's commercial segment, which accounts for about 30% of its revenue, has seen increased adoption of its AI-powered platform. Meanwhile, the government segment continues to perform strongly, contributing 42% of the total revenue [2].

Mizuho analysts led by Gregg Moskowitz noted that Palantir's recent execution and momentum are "stunning," but they are cautious about the stock's valuation. The company trades at an enterprise-value-to-sales multiple of 97 times for 2025 and 77 times for 2026, significantly higher than industry norms. Despite this, the analysts acknowledge that Palantir's unique position in AI and its strategic partnerships with major players like Accenture (ACN) justify its high valuation [3].

Palantir's stock has surged more than 400% over the past 12 months, driven by strong performance in its commercial and government businesses. The company's AIP bootcamps and growing enterprise inbound activity have helped accelerate its revenue growth. The use cases for Palantir's software platforms are broadening across various sectors, including finance, healthcare, and energy [2].

The upgrade by Mizuho is a rare bullish note for PLTR, as Wall Street maintains a cautious stance with a consensus "Hold" rating. While some analysts, like Wedbush's Dan Ives, see potential for Palantir to become "the next Oracle," the key question facing investors is whether the company's execution and expanding AI opportunities can justify its premium valuation [1].

Palantir's long-term prospects appear promising, particularly given its strategic positioning in AI and government contracts. However, the current valuation levels suggest significant risks for investors. The company's high growth expectations are already priced into its shares, leaving little room for error. Investors should closely monitor Palantir's Q2 earnings report and the company's ability to sustain its recent momentum [3].

References:
[1] https://finance.yahoo.com/news/palantir-stock-just-scored-rare-145536484.html
[2] https://www.ainvest.com/news/mizuho-upgrades-palantir-neutral-stunning-revenue-growth-2507-81/
[3] https://www.morningstar.com/news/marketwatch/20250716190/this-former-palantir-bear-changed-his-tune-on-the-stock-heres-why