Palantir Technologies Inc. (NASDAQ: PLTR) stock rose sharply after the company reported quarterly results that beat Wall Street forecasts. Shares gained nearly 30% on Aug. 4 and closed near $162 after starting the session in the low $120s.

The rally followed strong revenue growth, higher profits, and raised guidance. Analysts also lifted their price targets as demand for Palantir’s artificial intelligence software remained firm across commercial and government clients.

Palantir stock gains on strong revenue growth

Palantir reported quarterly revenue of $1.94 billion, up 93% from a year earlier. The figure topped the average analyst estimate of about $1.80 billion. Adjusted earnings reached $0.41 per share, above the expected $0.35.

The company also reported a 55% GAAP net margin and about $1 billion in profit. Cash flow from operations reached $1.2 billion, while adjusted free cash flow stood at $1.22 billion.

Palantir’s U.S. commercial revenue rose 149% from a year earlier to $764 million. The segment also grew 28% from the previous quarter. U.S. government revenue increased 90% to $809 million.

The company said customer spending remained strong. Net dollar retention rose to a record 157%. Palantir also closed several large contracts during the quarter, showing broader use of its AIP software platform.

Management raises full-year forecast

Palantir now expects full-year revenue of $8.15 billion to $8.16 billion. Its previous forecast ranged from $7.65 billion to $7.66 billion. The company also expects U.S. commercial revenue to exceed $3.42 billion.

For the third quarter, Palantir forecasts revenue between $2.16 billion and $2.164 billion. Adjusted operating income could reach about $1.29 billion. Management also expects adjusted free cash flow of $4.5 billion to $4.7 billion for the year.

Chief Executive Alex Karp said the growth pace could continue for at least another 18 months, based on demand.

Several analysts turned more bullish after the report. Citi raised its Palantir stock price target to $245, while Mizuho set a target of $215. Veteran analyst Stephen Guilfoyle kept a $181 target.

Guilfoyle cited strong growth, rising margins, high cash flow, and a debt-free balance sheet. Palantir ended the quarter with $9.4 billion in cash and no debt, giving it more flexibility as it continues to scale both its commercial and government businesses.

Despite the rally, Palantir stock remains below its level at the start of 2026. Investors will now watch whether commercial growth stays strong and whether the company can meet its raised forecasts, especially after management lifted guidance and analysts revised their targets following the earnings report.