Palantir’s stock price (NASDAQ:PLTR) is looking to reverse recent trend heading into today’s earnings, with PLTR up 3.05% in the pre-market session, off the back of a 26.7% YTD decline.
The company is set to report earnings after the closing bell, and despite a sharp pullback in the stock, the Street is expecting plenty of positives from the print. Wall Street is looking for an EPS of $0.35, which whilst modest, represents a 118% increase from the $0.16 reported this time last year. Revenue is expected to come in at $1.81 billion, up 80.46% Y/Y.
Looking out to the next financial year, and expectations remain elevated, with revenue currently expected to grow by 45.38%. with EPS increasing from $1.47 to $2.09.
With plenty of growth expected, and priced in following earlier years’ rallying, let’s take a quick glance at previous prints for clues. Palantir comes in on an impressive earnings beat streak, having beaten analyst expectations in the last eight quarters.
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The Setup For PLTR
Palantir enters this earnings print with a mixed backdrop. On one hand, the company has benefited from surging interest in AI and data analytics, with strong momentum in both government and commercial sectors. Recent commentary suggests Palantir is better positioned than some AI infrastructure peers heading into earnings season, yet the trend is not with bulls leading in.
The broader AI and software sector has experienced significant volatility in recent weeks, with concerns about whether AI spending will continue at its current pace, combined with fears that AI-powered development tools could disrupt traditional SaaS business models, have weighed on software stocks. Meta Platforms, for example, fell more than 8 per cent after a disappointing print, while Microsoft rallied after reporting accelerating Azure growth.
Palantir’s stock has also faced pressure from broader sector rotation and questions about valuation. The iShares Expanded Tech-Software ETF, which holds positions in Palantir, Microsoft, and Salesforce, is down 11 per cent year-to-date amid these concerns.
Despite this volatility, some analysts remain bullish. Recent commentary from firms like Wells Fargo has highlighted AI as a growth driver for software companies, reversing earlier fears that AI would cannibalise existing revenue streams. If Palantir can demonstrate that its AI-enabled platform is driving durable enterprise demand, the stock could outperform peers in the post-earnings period.
Options markets are pricing plenty of volatility following the print, with Palantir’s stock expected to move by ~11% in either direction. PLTR bulls will be looking for this one to break to the upside out of the recent range, with a negative print potentially setting out a course to retest 52 week lows.
