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Palantir shares surge after earnings as US Commercial demand reaccelerates
Forward P/E fell to 84.0 times from roughly 199 on average over the prior four quarters, after the stock dropped about 30% year to date.
Palantir (PLTR) shares were up sharply after the company reported strong second quarter results, with Yahoo Finance citing a key factor behind the post-earnings jump as a perception that the stock’s valuation looks cheaper than its own history, even though it remains far above the market.
According to Yahoo Finance AlphaSpace data, Palantir’s forward price-to-earnings ratio fell to 84.03 times from a four-quarter average of about 199 times, after the shares had tanked 30% on the year ahead of the earnings release. By comparison, the S&P 500 trades around a 20 times forward P/E.
The earnings follow-through was driven by a reacceleration in Palantir’s US Commercial business, where revenue growth accelerated by 16 points sequentially to 149% year over year. Yahoo Finance also pointed to forward indicators, saying total contract value in the US Commercial segment jumped 153% year over year to a record $2.1 billion.
Palantir raised its full-year revenue guidance by seven percentage points to a range of $8.15 billion to $8.158 billion, which the outlet said implies an 82% increase versus the prior year. Yahoo Finance highlighted that analysts viewed the quarter as a standout result, emphasizing the strength and snapback in US Commercial demand.
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