Palantir posts first quarterly profit, tops $28 billion market cap

Palantir shares surged 9% to $112.28 on Tuesday after falling to a low of $98.00 earlier in the session, pushing the company’s market value above $28 billion. The rally came after the software firm released a strong earnings report and announced new government contracts, sparking fresh buying interest from both retail and institutional investors.

Palantir, which went public in September 2020, has shifted from a one‑time licensing model to a subscription‑based revenue stream. In its latest quarter, the company reported $1.3 billion in revenue, up 42% year‑over‑year, and a net profit of $122 million—its first quarterly profit since launch. The spike in earnings was driven by growth in its data‑analytics platform, Palantir Foundry, and a new partnership with the U.S. Department of Defense that will deliver AI‑powered intelligence tools. Analysts note that Palantir’s focus on AI and data integration positions it well amid a broader market push toward advanced analytics.

Following the earnings release, analysts raised their price targets for the stock. Bloomberg reported a median target of $135, up from $112, citing the company’s expanding customer base and the potential to monetize its AI tools. Institutional buyers added $3.2 billion in shares over the past month, according to data from Refinitiv. CEO Alex Karp said the firm is “on track to double its revenue next year” and highlighted upcoming product launches that will target the commercial sector, potentially opening new revenue streams.

The next key event for Palantir is its upcoming quarterly earnings call, scheduled for next week. Investors will look for guidance on the growth of its commercial segment and the impact of its new AI initiatives. While the recent surge boosts confidence, analysts caution that the company still faces regulatory scrutiny over data privacy and competition from rivals like Snowflake and Microsoft. If Palantir can sustain its revenue momentum and navigate these challenges, its stock could continue to climb, but any slowdown could trigger a sharp pullback.