Palantir stock: Here's what Wall Street expects from the upcoming earnings report

As anticipation mounts ahead of Palantir Technologies (NYSE:PLTR)' earnings report scheduled for today after the close, investors and analysts alike are eagerly awaiting insights into the company's performance and future trajectory. 

Palantir, a leading data analytics firm, has garnered significant attention in recent years, both for its technologies and its fluctuating stock performance.

The stock is up more than 5% so far on Monday. Here's what analysts expect: 

An analyst at Wedbush reiterated the firm’s Outperform rating and $35 price target on Palantir Technologies in a note today, looking ahead to the earnings release.

The analyst stated that the report after the bell for “another key quarter” is expected to show “another solid quarter with upside driven by US commercial strength.”

“With the AI Revolution now quickly heading towards the key use case and deployment stage, Palantir, with its flagship AIP platform and myriad of customer boot camps, is in the sweet spot to monetize a tidal wave of enterprise spend now quickly hitting the shores of the tech sector in our opinion,” he stated. “The big focus tonight will be hearing about AIP customer conversion, US commercial strength momentum, and the trajectory of larger deals in the pipeline."

Meanwhile, Citi analysts raised their price target for Palantir to $23 from $20 per share while maintaining a Neutral rating on the stock in a note.

The bank moved Palantir off a Sell rating last quarter as it became incrementally more positive about the company’s U.S. Commercial momentum and much-improved profitability profile. 

“We expect some strength in Q1 US commercial as the latest sold out AIPCon highlighted ramping customer tractions from all verticals including OpenAI, though we note typically weak seasonality could be a factor,” said Citi. “This may help offset the underwhelming federal deal activity this Q (Excluding the Titan Deal which starts in 2Q).”

Furthermore, the bank sees room for a small ~1% topline beat in Q1 and a healthy profitability upside. They expect the Q2 topline guide to be ahead of Street estimates. In addition, Citi tweaked its estimates slightly to favor Palantir’s stronger commercial ramp vs government and slightly higher profitability.

Monness, Crespi, Hardt analysts upgraded Palantir to Neutral from Sell in its note looking ahead to the company’s earnings release, highlighting the stock’s recent decline as a factor in its downgrade.

"In our view, Palantir is well positioned to benefit from the long-term AI trend, and capitalize on volatile geopolitics,” said the firm. “However, revenue from government-related contracts has proven lumpy, execution spotty, valuation excessive, and we believe the darkest days of this economic quagmire are ahead of us."