Palantir Wins $212.42 Buy Target After Q2 Revenue Jumps 93%
Updated
Updated · 24/7 Wall St. · Aug 20
Palantir Wins $212.42 Buy Target After Q2 Revenue Jumps 93%
2 articles · Updated · 24/7 Wall St. · Aug 20
Summary
$212.42 is 24/7 Wall St.'s new price target for Palantir, implying 21.25% upside from $175.19 after the company posted a blowout Q2 FY26.
Q2 EPS came in at $0.41 versus $0.28 expected, marking a ninth straight beat, while management lifted full-year revenue guidance to $8.150 billion-$8.158 billion, or 82% growth.
U.S. commercial momentum drove the case: revenue rose 149%, net dollar retention reached 157%, bookings hit $2.132 billion and remaining deal value climbed to $13.1 billion.
Valuation remains the main risk because Palantir trades at 147 times trailing earnings and 108 times forward earnings, with $265 million in stock-based compensation and slower 26% international commercial growth.
The bullish outlook also leans on a stronger defense pipeline, with the FY27 U.S. war budget pushing faster AI and autonomy deployment that could support Palantir's Maven-related business.
As Project Maven nears program-of-record status, will Palantir's sky-high valuation hold if defense procurement suddenly shifts away from software?
Can Palantir's Sovereign AI partnership with NVIDIA justify its 108 forward P/E before stock-based compensation significantly dilutes investor returns?
With 81% of revenue tied to the U.S., could Palantir's lagging international growth become the Achilles' heel of its AI dominance?