Palantir Technologies will flex its artificial intelligence muscles in both government and commercial sides of its businesses in its second quarter earnings report on Monday, expects a Citigroup analyst. With Palantir stock up about 110% in 2025, expectations are high heading into the earnings report.
"We are constructive on commercial fundamentals into Q2 results," Radke said in a report published on Wednesday. "We expect a 2 to 3 point beat on revenue with upside to both government and commercial revenue consensus estimates. While the acceleration in government has been impressive, second half growth has a tougher compare."
Radke holds a neutral rating on Palantir stock.
On the stock market today, Palantir stock hit a new all-time high of 160.89 in intraday trading. However, shares then pull back. In afternoon action, Palantir stock was down about 1% to near 157.
It's the top performer on the S&P 500 in 2025, after leading the benchmark index last year.
"We continue to see strong AI government demand with Palantir signing a five-year $100 million contract with The Nuclear Company and contracts with the U.S. Navy (partnered with Anduril)."
Second Quarter Earnings Estimates
"We see potential tailwinds from the increasing adoption of AI across enterprise," he added.
In the Q2 Palantir earnings report, Wall Street analysts project 54% profit growth to 14 cents with revenue rising 38% to $939.3 million.
Analysts expect Palantir's government business to grow 38% to $513 million. The commercial business is also expected to grow 38%, but to $425 million.
Palantir has provided data analytics tools to government customers for intelligence gathering, counterterrorism and military purposes. Now Palantir aims to use generative AI to spur growth in the U.S. commercial market, such as health care and financial services.
The maker of data analytics software holds a premium valuation. Palantir stock has gained amid views that the company seems poised to win more U.S. government business under the Trump administration. Also, retail investor enthusiasm for generative artificial intelligence plays has boosted Palantir stock, although commercial-related revenue has yet to ramp up for the company.
Palantir continues to make progress with its "Artificial Intelligence Platform," initially rolled out in early 2023. In June, Palantir hosted its seventh artificial intelligence conference for customers, with several new companies taking part.
Palantir Stock Technical Ratings
However, Palantir has not disclosed pricing for AI products. Some analysts say Palantir needs to show more revenue progress with generative AI commercial deployments.
The Relative Strength Rating of Palantir stock stands at 99 out of a best-possible 99, according to IBD Stock Checkup.
Palantir stock holds an Accumulation/Distribution Rating of B. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. (A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.)
Also, Palantir stock holds a Composite Rating of 99 out of a best-possible 99. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
