Palantir Shares Climb After 'Stunning' Growth Sparks Mizuho Upgrade

July 16 - Palantir PLTR shares climbed about 1% on Wednesday after Mizuho Securities elevated its rating to Neutral from Underperform, citing stunning revenue momentum.

Mizuho analyst Gregg Moskowitz highlighted that Palantir's commercial and government segments have consistently outpaced expectations, with material upward revisions across both lines. He noted the company could extend its revenue growth streak to a fifth straight quarter when it reports Q2 results in early August.

Palantir is set to release fiscal Q2 2025 figures on Aug. 4. The consensus estimate calls for adjusted EPS of $0.14 on revenue of $939.3 million. In Q1, Palantir delivered 39% year?over?year revenue growth, building on gains of 21%, 27%, 30% and 36% in the four quarters of fiscal 2024. Analysts expect Q2 growth to remain near 3940% year?over?year.

Moskowitz warned that Palantir's valuation multiple sits well above peers in software, suggesting a risk of multiple reversion in coming quarters. Still, he argued the company's unique positioning in AI, government digital transformation and industrial modernisation justifies a degree of premium. Investors will watch whether Palantir can meet lofty expectations in August, which may influence its longer?term outlook.