William Blair Raises Palantir’s FY2026 Earnings Forecast Significantly
Equities researchers at William Blair have revised their earnings forecast for Palantir Technologies Inc. (NASDAQ: PLTR), projecting a substantial increase in earnings per share (EPS) for fiscal year 2026. In a note to investors dated November 4, 2023, analyst L. Dipalma updated the EPS estimate from $0.68 to $1.09, reflecting a more optimistic outlook for the company.
This new estimate contrasts sharply with the current consensus estimate for Palantir’s full-year earnings, which stands at $0.31 per share. Several other financial institutions have also recently provided their assessments of Palantir’s stock. For instance, the Goldman Sachs Group raised its price target for Palantir shares from $141.00 to $188.00, maintaining a “neutral” rating. In a different direction, Wall Street Zen downgraded the stock from a “buy” to a “hold” rating, highlighting the varied perspectives among analysts.
On the same day, Northland Securities increased its price target from $14.00 to $18.50, while Royal Bank of Canada raised its target from $45.00 to $50.00, assigning an “underperform” rating. Meanwhile, Piper Sandler boosted its target from $201.00 to $225.00, indicating a more bullish stance.
As of now, five investment analysts have given Palantir a “Buy” rating, while sixteen have assigned a “Hold” rating, and two have issued a “Sell” rating. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a target price averaging $173.45.
The trading environment for Palantir has been dynamic. On Friday, the stock fell by 2.9%, closing at $169.92. During this session, the company experienced a trading volume of 33,853,608 shares compared to its average volume of 83,166,703. Palantir Technologies holds a market capitalization of $403.11 billion and exhibits a price-to-earnings (P/E) ratio of 404.57 along with a beta of 2.63. The stock has fluctuated within a 52-week range, reaching a low of $55.30 and a high of $207.52.
Palantir’s performance in the latest earnings report, released on November 3, 2023, further supports the positive outlook. The company reported earnings of $0.21 per share, surpassing the consensus estimate of $0.17 by $0.04. Revenue for the quarter was $1.18 billion, exceeding analysts’ expectations of $1.09 billion. This represents a remarkable increase of 62.8% compared to the same quarter last year, when the firm reported earnings of $0.10 per share.
Institutional investment activity also reflects growing interest in Palantir. Several large investors have recently adjusted their holdings in the company. For example, Summitry LLC acquired a new stake valued at approximately $362,000, while Swan Global Investments LLC invested around $309,000. Notably, M&G PLC added a significant position worth $1,259,000 in the third quarter.
In terms of ownership, Zions Bancorporation National Association UT increased its holdings by 208.5% in the same period, now owning 13,196 shares valued at approximately $2,407,000. Additionally, Vanguard Group Inc. raised its stake by 4.0%, now holding 213,886,270 shares valued at about $39 billion.
Insider trading activity has also been notable, with Ryan D. Taylor, an insider at Palantir, selling 36,048 shares on September 5 for a total of $5,708,200.80. This transaction represented a 10.49% decrease in Taylor’s ownership. Similarly, Shyam Sankar sold 30,000 shares on August 22 for $4,786,500.00, a reduction of 4.09% in his stock holdings.
Overall, insider sales over the past 90 days have totaled 1,527,750 shares, valued at approximately $234,463,896. Currently, insiders hold 9.23% of the company’s stock.
Founded in 2003, Palantir Technologies specializes in developing software platforms that serve as operational systems for both commercial and governmental clients. The company operates under two main segments: Commercial and Government, with the former catering to non-government industries and the latter focusing on both U.S. and international government agencies.
As the market continues to react to these developments, Palantir Technologies remains a closely watched entity in the technology sector.
