Palantir's Stock Rating Upgraded by Mizuho on 39% Revenue Growth

Palantir Technologies, a data analysis and artificial intelligence company, has recently seen its stock rating upgraded by Mizuho Securities. The rating was raised from "underperform" to "neutral," reflecting the company's sustained and impressive revenue growth that has exceeded market expectations. This positive performance has effectively addressed previous market skepticism regarding Palantir's financial health and growth prospects.

The upgrade by Mizuho Securities comes as a result of Palantir's consistent delivery of strong financial results. The company's revenue growth has been particularly noteworthy, surpassing analyst forecasts and demonstrating a robust business model. This performance has been a key factor in changing market sentiment, as investors and analysts alike have taken notice of Palantir's ability to generate revenue and expand its market presence.

Mizuho Securities analyst Gregg Moskowitz highlighted in an investment report that Palantir's recent business execution and growth momentum have been remarkable. The company's performance in both government and commercial sectors has far exceeded expectations. Moskowitz believes that Palantir is likely to achieve its fifth consecutive quarter of accelerated revenue growth when it releases its second-quarter financial report in early August.

According to the schedule, Palantir is set to release its second-quarter financial report for the fiscal year 2025 on August 4. Market expectations are for an adjusted earnings per share of $0.14 and revenue of $939.29 million. The software company's first-quarter performance showed a year-over-year growth of 39%, with the four quarters of the fiscal year 2024 showing year-over-year growth rates of 21%, 27%, 30%, and 36% respectively. It is anticipated that the second quarter of the fiscal year 2025 will maintain a high growth rate of 39% to 40%.

However, Moskowitz also noted that Palantir's current high valuation multiples are surprising, as they significantly exceed those of other software industry companies. While there are concerns about potential valuation adjustments in the coming quarters, Moskowitz acknowledges that Palantir's unique qualities justify a premium valuation. Looking ahead, the company is well-positioned to benefit from long-term trends in AI, government digital transformation, and industrial modernization.

Mizuho Securities has also raised its target price for Palantir from $116 to $135. Since the beginning of 2025, Palantir's stock price has doubled, while the iShares Expanded Tech-Software Sector ETF has seen a 9% increase during the same period. This significant outperformance underscores the market's growing confidence in Palantir's future prospects and its ability to continue delivering strong financial results.