Palantir is scheduled to report its second-quarter earnings after the market closes on Monday. Here's what you need to know.
PROFIT: The company is expected to report a profit of $796.9 million, or 31 cents a share, according to analysts polled by FactSet. That compares with a profit of $326.7 million, or 13 cents a share, a year earlier.
ADJUSTED EARNINGS: Analysts expect adjusted earnings of 34 cents a share, compared with 16 cents a share a year earlier.
REVENUE: Revenue is expected to grow to $1.81 billion, according to FactSet, up about 81% from $1 billion a year prior.
Shares of Palantir were recently up 1.5% at $124.95. The stock is down 30% year-to-date.
WHAT TO WATCH:
-- Palantir is likely to post another quarter of strong growth. Oppenheimer analysts expect a solid beat on revenue, likely accompanied by a lift to guidance for around 75% full-year revenue growth compared to current guidance of 71%. Their checks indicate robust U.S. commercial demand, while increased spending at the Department of Homeland Security and the war in Iran should boost Palantir's business with the U.S. government. International growth may be slower as some European allies begin to look for Palantir alternatives, they wrote. But even impressive headline numbers may not be enough to boost the stock, Morgan Stanley analysts wrote in a recent note, pointing out that shares fell after the company beat estimates and lifted its guidance in the first quarter. "As such, while we expect another beat-and-raise quarter with total revenue growth likely to accelerate modestly, we think clearer evidence of continued US Commercial acceleration is needed for shares to re-rate meaningfully from here," the analysts wrote.
-- The company has been the subject of persistent debate about its durability in the artificial-intelligence age. In the second quarter, Oppenheimer's checks suggest that Palantir has avoided deal push-outs experienced by other software firms. Longer-term, the company may benefit from businesses increasingly diversifying their AI model providers, as reported by The Wall Street Journal. D.A. Davidson analysts wrote in a recent note that Anthropic's tense relations with the government highlight the importance of having an AI orchestration layer that is independent of the underlying model. The Anthropic-Pentagon dispute "removes the biggest perceived threat to Palantir - the notion that companies will go to Anthropic and OpenAI to solve their biggest problems," the analysts wrote.
