On Monday, Palantir Technologies, Inc. (NASDAQ:PLTR) shares surged nearly 15% in after-hours trading as Wall Street commentators praised the AI software company’s blowout second-quarter results and raised outlook.
Jim Cramer, Analysts React to Palantir’s Blowout Quarter
CNBC’s Jim Cramer took to X and reacted to Palantir’s post-earnings rally on X, saying buyers were “walking up Palantir like the old days,” before asking, “But are the old days still viable?”
Palantir shares gained 14.97 in after-hours trading but declined 21.79% in the past year, according to Benzinga Pro.
Futurum Group CEO Daniel Newman took a more bullish view, saying Palantir had “absolutely smoked expectations.”
He pointed to the company’s strong commercial performance and improved outlook, adding that its guidance looked even better than the quarterly results.
Palantir’s Rule of 40 Score Hits 155: Analyst
Futurum Equities market strategist Shay Boloor highlighted Palantir’s growing profitability alongside its rapid expansion.
He said the company’s Rule of 40 score had reached 155 and had expanded for 12 consecutive quarters as operating leverage improved with scale.
Boloor argued that Palantir is approaching 100% growth while converting more than half of its revenue into operating income, a combination he described as unusually rare for a large software company.
He also contrasted Palantir with major technology companies such as Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corp. (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:META), which are investing heavily in AI infrastructure.
Palantir, he said, operates above that infrastructure layer, using AI and data to help customers generate real-world outcomes without funding the physical buildout itself.
Palantir Q2 Earnings Beat Wall Street Expectations
Palantir reported second-quarter revenue of $1.94 billion, beating analysts’ estimates of $1.80 billion. Adjusted earnings came in at 41 cents per share, above Wall Street’s expectation of 35 cents per share.
The company generated $1.22 billion in cash from operations and $1.22 billion in adjusted free cash flow during the quarter. It ended the period with approximately $9.2 billion in cash, cash equivalents and short-term U.S. Treasury securities.
Palantir Raises 2026 Revenue and Cash Flow Outlook
Palantir expects third-quarter revenue of between $2.16 billion and $2.164 billion, exceeding analysts’ estimate of approximately $2 billion.
The company raised its full-year 2026 revenue forecast to $8.15 billion to $8.16 billion, up from its previous range of $7.65 billion to $7.66 billion.
Analysts had projected full-year revenue of approximately $7.69 billion.
Price Action: Palantir shares closed Monday’s regular trading session at $125.65, up 2.10%. The stock remained down 20.41% over the past six months, according to Benzinga Pro.
Benzinga Edge Rankings place Palantir in the 98th percentile for Growth, although the stock continues to show a negative price trend across the short, medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: PJ McDonnell / Shutterstock
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