Palantir receives upgrade as revenue growth remains ‘stunning’: Mizuho

Palantir (NASDAQ:PLTR) was upgraded to Neutral from Underperform by Mizuho Securities as its sustained revenue growth has proven to be stronger than expected and has changed the minds of doubters.

“PLTR’s recent execution and momentum is stunning, including material upward revisions across its commercial and government segments that we very much underestimated,” said Mizuho analyst Gregg Moskowitz in an investor note. “We also believe PLTR has a legitimate chance to accelerate revenue growth for a 5th consecutive quarter when reporting 2Q results in early August.”

Palantir is scheduled to release its second quarter fiscal 2025 results on August 4. A consensus estimate calls for adjusted earnings per share of $0.14 on revenue of $939.29M. The software company’s first quarter results demonstrated year-over-year growth of 39%. The four quarters of fiscal 2024 showed year-over-year growth of 21%, 27%, 30% and 36%, respectively. The second quarter of fiscal 2025 is expected to feature year-over-year growth of 39% to 40%.

“That said, we are equally stunned by the multiple that PLTR has attained, which places its valuation dramatically above anything else in software,” Moskowitz added. “While we continue to worry that the shares could suddenly be subject to material multiple reversion at some point over the next few quarters, PLTR’s uniqueness demands a great deal of credit. And looking forward, PLTR appears very well-positioned to benefit from long-term trends in AI, government digital transformation, and industrial modernization.”

Mizuho increased its price target to $135 from $116.

Palantir shares have doubled since the start of 2025. In comparison, the iShares Expanded Tech-Software Sector ETF (IGV) has climbed 9% year to date.