Citi Raises Palantir Price Target to $250 Ahead of Q3 Results

Citi expects Palantir’s U.S. government and commercial businesses to remain strong in the third quarter, raising its price target on the software company to $250 a share from $245 ahead of the Nov. 2 results.

The bank kept a Buy rating and expects upside in both business lines despite tougher year-over-year comparisons. Citi’s view concerns the two U.S. segments; Palantir’s own third-quarter guidance covers revenue and adjusted income from operations for the full company.

In the quarter ended June 30, Palantir generated $809 million in U.S. government revenue, up 90% from a year earlier, and $764 million in U.S. commercial revenue, up 149%. Commercial revenue grew faster by percentage, while government revenue was $45 million higher. The figures provide the latest reported results for the two businesses Citi expects to keep growing.

Palantir’s second-quarter revenue across all businesses reached $1.935 billion, a 93% year-over-year increase. Adjusted earnings per share were $0.41, and the company closed 220 deals worth at least $1 million during the quarter. The company’s second-quarter results included the segment figures.

Palantir also raised its 2026 U.S. commercial revenue outlook to more than $3.424 billion, representing growth of at least 134%. Its full-year revenue forecast stands at $8.150 billion to $8.158 billion. Those are company forecasts, separate from Citi’s view of the U.S. business lines.

Palantir’s third-quarter outlook calls for revenue between $2.160 billion and $2.164 billion, with adjusted income from operations between $1.292 billion and $1.296 billion. The low end of the revenue range is $225 million above the second-quarter total; the November release will provide the actual figure for the quarter ended Sept. 30.

Palantir plans to release its third-quarter results Nov. 2 after the U.S. market closes. The company’s webcast is scheduled for 5 p.m. ET (22:00 UTC).