Should Palantir Stock Be in Your Portfolio Before Q2 Earnings?

Palantir Technologies Inc. PLTR will report its second-quarter 2026 results on Aug. 3, after the bell.

The Zacks Consensus Estimate for earnings in the to-be-reported quarter stands at 35 cents, indicating 118.8% growth from the year-ago reported quarter. The consensus estimate for total revenues stands at $1.81 billion, indicating 80% year-over-year growth. There have been no changes or revisions to analyst estimates lately.

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The company has a strong history of earnings surprises. Earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and matched it once, with an average earnings surprise of 11.6%.

PLTR’s Lesser Chance of Q2 Earnings Beat

Our proven model doesn’t conclusively predict an earnings beat for PLTR this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

PLTR has an Earnings ESP of 0.00% and a Zacks Rank #2.

You can see the complete list of today’s Zacks #1 Rank stocks here.

PLTR’s All-Round Healthy Business Should be the Driver in Q2

We expect a significant year-over-year improvement in the company’s top line in the to-be-reported quarter, driven by healthy business from existing and new customers, strengthening both the Government and Commercial segments.

The consensus estimate for Government revenues is pegged at $916.2 million, indicating 65.7% year-over-year growth. The consensus mark for Commercial revenues is pegged at $892.1 million, suggesting 98% year-over-year growth.

PLTR Stock Experiencing Pullback

Palantir shares have declined 22% over the past year and 15% over the past three months. This performance clearly indicates a pullback in the stock.

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Based on trailing 12-month EV-to-EBITDA, PLTR is currently trading at 162.72X, way above the industry’s 10.66X. If we look at the forward 12-month Price/Earnings ratio, the company’s shares are currently trading at 67.27X forward earnings, well above the industry’s 26.51X.

Investment Considerations

Palantir continues to distinguish itself through rapid commercial adoption, expanding customer relationships, improving profitability, and disciplined execution. The company's Artificial Intelligence Platform is gaining traction across enterprises, while larger contracts and a growing customer base provide visibility into sustained long-term growth. At the same time, exceptional operating efficiency demonstrates that Palantir is scaling its business without compromising profitability. So, the recent share-price weakness appears to present a compelling opportunity for long-term investors. Despite near-term valuation concerns, Palantir's strengthening fundamentals support a Buy recommendation for investors seeking exposure to one of the software industry's leading AI growth stories.

Peer View

PLTR’s competitive strengths are reflected in its financial performance. The company delivered 85% revenue growth in the first quarter of 2026, including an exceptional 133% increase in U.S. commercial revenues, while generating a 60% adjusted operating margin and a 53% GAAP net margin. Even leading AI software companies like Datadog DDOG and Snowflake SNOW struggle to match this combination of rapid expansion and profitability.

While DDOG and SNOW continue to benefit from AI demand, their growth rates remain significantly lower. By combining a durable software foundation with industry-specific expertise and superior execution, Palantir continues to separate itself from DDOG, SNOW and traditional enterprise software competitors.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research