Retail Bulls Charge Ahead of Palantir's Q1 Earnings — Will the Stock Hit New Highs?

Positive earnings from artificial intelligence (AI) frontrunners have perked up hopes for AI-powered data analytics software company Palantir Technologies, Inc. (PLTR). The Alex Karp-led company is scheduled to report its quarterly results after the market closes on Monday.

According to Finchat, analysts expect Palantir to report adjusted earnings per share (EPS) of $0.13 and revenue of $862.13 for the first quarter of the fiscal year 2025.

This compares to the year-ago quarter’s $0.08 and $634.34 million and the previous quarter’s $0.14 and $828 million.

Palantir had guided to first-quarter revenue of $858 million to $862 million and adjusted operating income of $354 million to $358 million. 

Wedbush analyst Daniel Ives said Palantir’s earnings are a major barometer for the pace of U.S. commercial AI projects and initiatives. The analyst expects good news from the ‘Messi of AI’ after the bell on Monday. 

Ives believes that Palantir’s proprietary platform — AIP product — is unmatched. 

“Palantir is well positioned for this new disciplined spending environment at the Pentagon and this will ultimately be a positive growth catalyst as PLTR gets a bigger seat at the table in the Beltway,” he added.

A Bloomberg report said last week that Palantir’s Tactical Intelligence Targeting Access Node (TITAN) was listed among the top-performing programs by the U.S. Army. 

The company’s guidance for the full year is for $3.741 billion to $3.757 billion in revenue and $1.551 billion to $1.567 billion in adjusted operating income. The consensus estimate calls for revenue of $3.75 billion for the year.

Palantir has recently seen a barrage of new contract wins.

The company secured a North Atlantic Treaty Organization (NATO) contract for its Maven Smart System for AI-enabled battlefield operations. Immigration and Customs Enforcement has reportedly awarded Palantir a $30 million contract to deploy its software add-ons to track immigrants overstaying their visas.

On Stocktwits, retail sentiment toward Palantir stock was ‘extremely bullish’ (78/100)  by early Monday, with the message volume rising to ‘high’ levels.

A bullish watcher said they expect the company to report an earnings beat, aligning with the trend seen in recent quarters. They also braced for more government contracts.

Another user saw the possibility of the stock hitting $135-$150 on an earnings beat.

Palantir stock has gained 64% year-to-date and is within striking distance of its all-time high of $125.41, which it hit on Feb. 19. It is currently the best-performing S&P 500 this year.

Sell-side analysts aren’t very optimistic about the stock trajectory. The Koyfin-compiled consensus price target for Palantir stock is $87.05, implying a 30% downside from current levels.

In early premarket session on Monday, the stock slipped 0.43% to $123.75. The stock was the top-trending ticker on the Stocktwits platform early Monday and among the top five active tickers.

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