Palantir stock surges 7% after Q2 earnings exceed expectations, analysts praise.

Palantir Technologies (PLTR) shares rose 7% premarket after Q2 results and outlook exceeded expectations, prompting positive comments from Wall Street analysts. Morgan Stanley kept its Equal-weight rating but increased the price target.

Palantir Technologies (PLTR) shares jumped 7% premarket following the release of its second-quarter (Q2) earnings report, which exceeded Wall Street expectations. The software maker's strong financial performance and positive outlook have garnered positive reactions from analysts, despite concerns over its high valuation.

Palantir reported earnings of 16 cents per share on an adjusted basis, a 78% increase year-over-year. Revenue climbed 48% to just over $1 billion, surpassing analysts' predictions of 14 cents per share and $938 million in revenue [1]. The company's U.S. government revenue also rose 53% to $426 million in Q2.

In response to the earnings report, Morgan Stanley maintained its Equal-weight rating but increased the price target for PLTR stock. The firm highlighted the company's strong growth in the U.S. government business and the potential for expansion in new markets, such as generative artificial intelligence applications in healthcare, energy, and manufacturing [1].

Despite the positive earnings report, the high valuation of PLTR stock remains a key concern for investors. The company's price-to-earnings ratio is the highest on the S&P 500, and it trades at roughly 80 times per-share sales expected for the next year [1].

Palantir's stock performance follows a strong year for the company, with shares surging 111% in 2025 and hitting a new all-time high of 161.40 in intraday trading on Monday. The stock is currently the top performer on the S&P 500 in 2025 [1].

In the broader market, Palantir's earnings report came as U.S. stocks slipped on Tuesday as investors digested the latest wave of corporate earnings and various tariff updates. The benchmark S&P 500 slid 0.4%, while the Dow Jones Industrial Average fell about 0.3%, and the Nasdaq Composite was down around 0.5% [2].

References:

[1] https://www.investors.com/news/technology/palantir-stock-pltr-stock-palantir-earnings-q22025/
[2] https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-slide-as-wall-street-eyes-earnings-trade-tensions-230420942.html