Shares of data analytics software company Palantir Technologies (PLTR) moved higher on Monday as investors awaited the company’s second quarter earnings report, scheduled for release after the closing bell.
At 11:54 a.m. EDT, Palantir shares were up 1.52%, or $1.87, at $124.99. Despite the intraday gain, the stock has declined 25.49% so far this year.
Wall Street expects Palantir to deliver another strong quarter, with revenue projected to rise 80.8% year over year, accelerating from the 48% growth recorded in the corresponding period last year.
Over the past month, analysts have largely maintained their earnings estimates, signalling confidence that the company will continue its growth trajectory. Palantir has consistently outperformed Wall Street expectations in recent quarters, reinforcing investor optimism ahead of the latest results.
In the previous quarter, the company reported revenue of $1.63 billion, marking an impressive 84.7% increase from a year earlier. The results comfortably exceeded analysts’ forecasts, supported by stronger-than-expected billings and adjusted operating income.
The company also builds artificial intelligence platforms, and its free cash flow, an increasingly important metric for AI firms, is seen doubling to $1 billion.
Performance from other companies in the data and analytics software space has also provided insight into sector trends. Strategy posted 6.9% year-on-year revenue growth, matching market expectations, while Commvault reported an 11.4% increase in revenue, surpassing estimates by 1.2%. Despite the earnings performances, Strategy shares fell 4.3%, while Commvault declined 19.5% following their respective results.
Investor sentiment toward the broader data and analytics software sector has remained positive, with the group gaining an average of 2.7% over the past month. In contrast, Palantir shares have slipped 7.4% during the same period. Even so, analysts remain optimistic, with the average price target standing at $182.20, well above the stock’s current trading level.
Palantir’s shares are priced at roughly 67 times earnings projected over the next 12 months, down from a high of 247 on October 31 and below their five-year average of 98. However, that still puts the company among the 15 most expensive members of the S&P 500 Index. And based on price-to-sales ratio, it’s the most expensive stock in the benchmark.
