Bull of the Day: Palantir Technologies (PLTR)
Palantir Technologies PLTR has become one of the biggest beneficiaries of the AI boom, with its software increasingly being deployed across both the commercial and government landscapes.
Earnings revisions have remained bullish, with the stock sporting the highly coveted Zacks Rank #1 (Strong Buy).
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PLTR’s Robust Results
Palantir’s recent results have continued to show red-hot momentum, with the company posting a double-beat relative to our consensus expectations in its latest print for the fifth consecutive time. Sales of $1.9 billion soared 92% YoY, whereas earnings climbed an even more impressive 140% from the same period last year.
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Palantir’s lucrative commercial opportunity stems from its Artificial Intelligence Platform (AIP), which allows customers to combine their existing data and operations with large language models and other generative AI capabilities.
U.S. commercial revenue soared 149% YoY in the above-mentioned release to $764 million, also growing by an impressive 28% sequentially. Future growth is underpinned by surging contract metrics, with U.S. commercial total contract value hitting a record $2.1 billion and growing 153% YoY, while U.S. commercial remaining deal value jumped 124% to $6.2 billion.
The company lifted its guidance across many metrics, now expecting FY26 revenue in a band of $8.150 - $8.158 billion, reflective of 82% YoY growth. U.S. commercial demand is also expected to remain red-hot, with PLTR upping the guidance to reflect 134% YoY growth.
Earnings are expected to see outsized growth amid the revenue surge, with current Zacks Consensus EPS estimates suggesting 115% YoY growth in FY26 and an additional 40% in FY27.
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Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Palantir Technologies PLTR would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
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This article originally published on Zacks Investment Research (zacks.com).
