Palantir Raises Forecast After Surging Q2 and Draws Fresh Analyst Upgrades

Analysts point to growing demand for sovereign and custom enterprise AI as a revenue driver while high valuation and customer concentration present clear investment risks.

Overview

Palantir reported second‑quarter revenue of about $1.94 billion on Thursday, roughly 93–94% year‑over‑year growth, and raised its full‑year 2026 revenue guidance to about $8.15 billion.
Goldman Sachs upgraded Palantir to Buy with a $230 price target and several other brokerages raised targets or reiterated buys, citing the company’s position in so‑called sovereign AI and bespoke enterprise deployments.
The quarter showed outsized U.S. commercial growth and large contract activity, with U.S. commercial revenue up 149% to $764 million, U.S. government revenue up 90% to $809 million, and 220 deals worth at least $1 million each.
Shares briefly climbed above $200 after the upgrade before retreating to close below that level, hitting an intraday high near $204.44 and facing resistance close to the prior $207.52 peak.
Analysts warn that Palantir’s rapid growth leaves little room for error because the stock trades at rich forward multiples and depends on a small set of large customers, which could amplify downside if new contracts slow.