Palantir's growth outpaces its valuation

Palantir's earnings per share (EPS) have experienced a substantial surge of 156% year-over-year, reaching $0.41. Concurrently, U.S. commercial revenue saw a significant jump of 149%. Despite these strong financial performances, the stock has remained down 3% year-to-date. As of September 16, 2026, Palantir trades at a high multiple of 148x trailing earnings, making its premium valuation vulnerable to any slowdown in U.S. commercial growth or contract terminations.

In the second quarter of 2026, Palantir reported revenue growth of 92.8% year-over-year, amounting to $1.935 billion. The U.S. commercial segment was a standout, growing by 149%. GAAP net income reached $1.06 billion, a 225% increase year-over-year, with adjusted free cash flow margins at 63%.

Management has raised full-year 2026 revenue guidance to between $8.15 billion and $8.158 billion, indicating an expected 82% year-over-year growth. Full-year 2027 EPS consensus has climbed to $2.33, with 26 upward revisions and no cuts in the past 30 days. Despite these positive trends, Palantir was not included in a recent analysis of the ten best stocks to buy.