Palantir Technologies (PLTR) shares rose nearly 2% on Monday, gaining 1.47%, as investors positioned themselves ahead of the company's fiscal second-quarter earnings report scheduled for release after the closing bell.

The data and analytics software company's stock edged higher in step with a broader market expected to open higher. Market participants are closely watching several key areas in the upcoming report, including the pace of Palantir's commercial agreement growth, which has accelerated throughout 2026, as well as the renewal of overseas contracts. Palantir has historically derived a substantial share of its revenue from government contracts, making the expansion of its commercial customer base a closely watched indicator of the company's ability to diversify its revenue base beyond the public sector.

Palantir, founded in 2003 and headquartered in Denver, Colorado, provides data integration and analytics platforms for both government and commercial clients. Its core products include Gotham, which serves defense and intelligence agencies, and Foundry, which is used by commercial enterprises for data management and operational analytics.

Earlier this year, Palantir's Maven Smart System officially became a Pentagon program of record, cementing an expanded role for the company in United States military artificial intelligence initiatives for years to come. Programs of record are funded lines in the defense budget, providing greater revenue visibility and stability compared to other contract types. The transition positions Maven alongside Palantir's longstanding Gotham platform as a recurring, budget-backed revenue source within the Department of Defense.

Despite Monday's gain, Palantir stock remains down more than 30% year to date. The decline came amid a broader AI disruption scare that swept through the entire software complex earlier in 2026, pressuring valuations across the sector.

Wall Street analysts maintain a broadly bullish outlook on the stock. Gil Luria, an analyst at D.A. Davidson, noted in July that Palantir holds a key competitive advantage through its AI orchestration tool, which enables users to switch between different AI models with minimal disruption to operations. Luria maintains a Buy rating on Palantir with a price target of $175.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.