Freedom Broker analysts maintain a “Buy” recommendation on shares of Palantir Technologies Inc. (PLTR) despite the company’s lofty market valuation. In their view, strong second-quarter results, accelerating growth in the U.S. commercial business, and an increased full-year FY2026 outlook confirm the scalability of the AIP artificial intelligence platform. The target price is $230 per share, implying upside potential of about 45% versus the current price of $158,7.
Palantir Technologies is one of the industry leaders
Palantir Technologies Inc. (PLTR) is a U.S. developer of software platforms for data analytics and artificial intelligence. The company works with government agencies, the defense sector, and major corporations, and the key driver of its development remains the platform Artificial Intelligence Platform (AIP). It is designed to deploy large language models and AI technologies within secure environments of businesses and government organizations. AIP integrates AI with internal data, applications, and workflows, enabling its use to solve practical tasks within an organization.
A strong quarter supports the investment thesis
Acceleration in the U.S. commercial segment, a record volume of large contracts, and a higher annual outlook confirm that demand for AIP is moving well beyond pilot projects and is turning into large-scale enterprise deployments. Freedom Broker maintains its “Buy” recommendation and $230 target price, the analysts note.
Experts believe that investors’ concerns about intensifying competition from the largest AI companies are not yet reflected in Palantir’s reported results. On the contrary, the second-quarter results show a further strengthening of the company’s competitive position.
Financial results significantly exceeded expectations
In the second quarter of FY2026, Palantir revenue increased 93% year over year to $1,94 billion and significantly exceeded both the company’s own guidance and analysts’ expectations.
Adjusted earnings per share reached $0,41, up 156% from the same period a year earlier. GAAP net income was $1,06 billion, and operating income was $912 million, corresponding to an operating margin of 47%. Adjusted operating margin hit a record 62%, and free cash flow totaled $1,22 billion.
The momentum in the U.S. business was particularly strong. U.S. revenue rose 115% to $1,57 billion and accounted for more than 80% of the company’s total revenue.
The U.S. commercial segment remains the main growth driver
The most impressive results came from the commercial business in the U.S., where revenue jumped 149% to $764 million. According to Freedom Broker analysts, this indicates that customers are moving from experimental use of generative AI to large-scale deployment of Palantir’s platform in core business processes.
Record contract activity provided additional confirmation of strong demand. Over the quarter, the company signed 220 contracts worth more than $1 million, including 98 deals above $5 million and 73 agreements worth more than $10 million— the best figures in Palantir’s history.
Sovereign AI is becoming Palantir’s new advantage
Freedom Broker analysts consider the development of the sovereign AI concept to be one of the key drivers of long-term growth. Unlike developers of foundational language models, Palantir offers an application software layer that allows customers to fully control enterprise data, business logic, security, and the operation of AI models.
Experts believe that this architecture reduces the risk of customers becoming dependent on individual model developers and allows Palantir to effectively complement the infrastructure of the largest cloud providers and AI labs, rather than competing with them directly.
According to analysts, competition from hyperscalers and companies such as Anthropic is likely to remain limited in the medium term because Palantir’s products address higher-level tasks—integrating AI into real-world enterprise production processes.
The company is strengthening its presence in the sector
Palantir has been steadily strengthening its position in the enterprise AI market throughout 2026. As early as the first quarter, the company significantly exceeded market expectations: revenue rose 84% to $1,63 billion, and the main driver was again the U.S. commercial segment, which increased revenue by 133%. At the time, analysts noted the rapid expansion of AIP platform usage among corporate customers.
In the spring, discussions intensified around the company about possible competition from developers of large language models. The trigger was statements by investor Michael Burry, who suggested that Anthropic’s growth could increase pressure on Palantir’s business. However, Freedom Broker analysts believe the second-quarter report effectively dispelled these concerns: the acceleration of U.S. commercial business growth to 149% confirms sustained strong demand for the company’s solutions.
An additional factor for long-term growth remains the expansion of cooperation with U.S. government agencies: Palantir is participating in the development of software for the Golden Dome missile defense system together with Anduril and a number of other technology companies. The project, valued at around $185 billion, is expected to become one of the largest defense AI projects in the U.S. and could secure new large-scale government contracts for the company.
Not an individual investment recommendation.