NEW YORK, August 8, 2026, 09:07 EDT — U.S. trading ended.
- Shares ended Friday at $172.01, up 10.3% on the session and 39.8% for the week.
- Revenue for the second quarter climbed 93%, and the value of U.S. commercial contracts expanded by 153%.
- Analyst price targets range from $80 to $255, with an average of $197.21.
Palantir’s surge boosted its market capitalization by approximately $117.6 billion over the last week. The company’s updated midpoint for 2026 revenue rose by nearly $498 million.
This is the main takeaway for investors. Purchasers adjusted valuations based on multiple years of AI cash flow, rather than on single-quarter results.
The market value stood at roughly $413.35 billion at the close on Friday. This represents 50.7 times projected sales and 89.9 times projected adjusted free cash flow.
The premium hinges on outstanding execution. Contract conversion and adjusted operating margins close to 60% are expected to be sustained.
Shifting market prices
| Measure | Previous or earlier value | Friday or most recent value | Difference |
|---|---|---|---|
| Share price | $123.06 | $172.01 | +39.8% |
| Estimated market capitalization | $295.7 billion | $413.35 billion | +$117.6 billion |
| 2026 revenue-guidance midpoint | $7.656 billion | $8.154 billion | +$498 million |
| Market cap to guided revenue | 38.6 times | 50.7 times | +12.1 turns |
| Equity-value rise vs. guidance raise | — | 236 times | — |
Equity value projections are based on the current share count remaining steady. The 236-times figure serves as an example, rather than a formal valuation approach.
The operating result accounts for the reset. Revenue surpassed consensus estimates by approximately 7%, and adjusted earnings per share exceeded expectations by 18%.
Guidance for the third quarter surpassed the given consensus by about 8%. The company’s management raised its U.S. commercial forecast as well, increasing it by $200 million.
Earnings and outlook summary
| Metric | Reported or guided | Estimate or old guidance | Difference |
|---|---|---|---|
| Q2 revenue | $1.94 billion | $1.81 billion estimate | +6.9% |
| Adjusted EPS | $0.41 | $0.35 estimate | +18.3% |
| Q3 revenue midpoint | $2.162 billion | $2.00 billion estimate | +8.1% |
| 2026 revenue midpoint | $8.154 billion | $7.656 billion previously | +6.5% |
| 2026 U.S. commercial revenue | Above $3.424 billion | Above $3.224 billion previously | +$200 million |
Consensus numbers reflect projections. Guidance from the company is still forward-looking.
The contract book could carry greater significance than the headline beat. U.S. commercial total contract value amounted to $2.132 billion.
The value of remaining deals increased to $6.238 billion, approximately double the annualized U.S. commercial revenue for the second quarter.
The engine of U.S. growth
| Measure | Q2 value | Year-on-year | Quarter-on-quarter | Investor context |
|---|---|---|---|---|
| Total U.S. revenue | $1.573 billion | up 115% | up 23% | 81.3% share of total revenue |
| U.S. commercial revenue | $764 million | up 149% | up 28% | 39.5% of overall revenue |
| U.S. government revenue | $809 million | up 90% | up 18% | 41.8% of total proceeds |
| U.S. commercial contract value | $2.132 billion | up 153% | — | 2.8 times more than quarterly segment sales |
| U.S. commercial remaining deal value | $6.238 billion | up 124% | up 27% | twice annualized segment revenue |
Chief Executive Alex Karp described the quarter as “otherworldly.” Emarketer analyst Jacob Bourne described Palantir as “the clearest counterexample” to enterprise AI not succeeding beyond pilot programs. SEC
The U.S. business accounts for both a protective advantage and a reliance risk, generating 81.3% of total revenue. International revenue climbed 33%, hitting approximately $363 million.
The last stage on Friday came as Bank of America NYSE:BAC analyst Mariana Perez Mora’s reiterated Buy and $255 price target drew fresh notice. The recommendation was reaffirmed.
The target is 48.2% higher than Friday’s closing price.
Wall Street analysts are aligned on momentum but divided on fair value. Among the group, there are 16 buy ratings, four hold ratings, and two sells.
Price targets range from $80 to $255, with the mean suggesting a potential upside of 14.7%.
Analyst ratings
| Firm and analyst | Latest recommendation | Price target | Versus $172.01 |
|---|---|---|---|
| Bank of America NYSE:BAC, Mariana Perez Mora | Buy, reiterated | $255 | +48.2% |
| Citigroup NYSE:C, Tyler Radke | Buy, maintained; target increased | $245 | +42.4% |
| Deutsche Bank NYSE:DB, Brad Zelnick | Raised to Buy | $200 | +16.3% |
| D.A. Davidson, Gil Luria | Buy; target increased | $200 | +16.3% |
| Cantor Fitzgerald, Thomas Blakey | Hold/Neutral; target increased | $156 | -9.3% |
| Royal Bank of Canada NYSE:RY, Rishi Jaluria | Sell/Underperform, unchanged | $90 | -47.7% |
| Jefferies Financial Group NYSE:JEF, Brent Thill | Sell/Underperform, unchanged | $80 | -53.5% |
The focus moves from earnings to interest rates next week. July consumer price figures are due on Wednesday at 8:30 a.m. EDT.
Analysts project headline inflation at 3.4% and core inflation at 2.5%. Producer price data is due Thursday, with retail sales figures set for Friday.
Risks: An upside surprise in inflation could push yields higher and weigh on valuations. International expansion continues to lag, and political tensions are heightened by procurement disagreements in Europe.
Palantir secured an increased growth premium. Following a 39.8% gain for the week, the pace of backlog conversion will need to exceed the impact of valuation compression.
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