Why Palantir stock is ripping higher after earnings: AlphaSpace stat of the morning

Why Palantir stock is ripping higher after earnings: AlphaSpace stat of the morning Brian Sozzi · Executive Editor Tue, August 4, 2026 at 2:10 PM GMT+2 2 min read PLTR ^GSPC It may sound absurd, but a key reason Palantir's ( PLTR ) stock is ripping higher by double digits post-earnings is that its valuation is being perceived as cheap, historically speaking. AlphaSpace stat of the morning: 84. 03 Palantir's stock has never been cheap, given the company's growth status.

But the stock had tanked 30% on the year ahead of the company's strong second quarter earnings report on Monday . That brought the forward price-to-earnings (P/E) ratio down to 84. 03 times per Yahoo Finance AlphaSpace data, down from a four-quarter average of about 199 times.

For perspective, though, the S&P 500 ( ^GSPC ) trades at a forward P/E ratio of about 20 times. The finer details Palantir stock surged 14% in early trading on Tuesday, with good reason. The company delivered a standout second quarter, highlighted by a decisive reacceleration in demand in the US Commercial segment, where revenue growth accelerated 16 points sequentially to 149% year over year.

More importantly, forward indicators on the business were even stronger, as the US Commercial unit's total contract value surged 153% year over year to a record $2. 1 billion. Management raised its full-year revenue guidance by seven percentage points to $8.

15 billion to $8. 158 billion, an estimated increase of 82% from the prior year. Wall Street reacts Citi analyst Tyler Radke: "This was a standout Q2 with a decisive reacceleration in U.

S. Commercial demand. We expect shares up meaningfully given the significant snapback in U.

S. Commercial performance, which pushes back against slowing growth. " D.

A. Davidson analyst Gil Luria: "Palantir reported another outstanding quarter with results coming in well above expectations as revenue growth accelerates further due to parabolic US demand for AI solutions. Palantir has several competitive advantages over all other software companies, which is becoming more pronounced in the era of AI helping the company provide guidance substantially above expectations.

" Brian Sozzi is Yahoo Finance's Executive Editor, host of the ' Power Players With Brian Sozzi' podcast and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi , Instagram , and LinkedIn . Tips on stories?

Email brian. sozzi@yahoofinance. com.