Palantir Technologies Inc. (NASDAQ:PLTR) delivered the strongest revenue growth in its history on its Aug 3 earnings, surpassing guidance across every key metric, and fueling a double-digit rally the next day. Results like these would normally be enough to win over even the stock’s biggest skeptics. Yet those results were not enough to change Jefferies analyst Brent Thill’s broader view. Although he raised his price target, he maintained an Underperform rating on the shares. His argument isn’t the strength of the latest quarter. Rather, the analyst believes the real challenge is whether the company can sustain this level of growth as investor expectations become more demanding.
A Record Quarter Ends With Even Higher Guidance
Palantir Technologies delivered another record-breaking quarter, with revenue rising 93% year-over-year to $1.935 billion. The result comfortably topped Wall Street’s estimate by $130 million and marked the highest revenue growth rate in the company’s history. The U.S. remained Palantir’s biggest growth driver, with revenue surging 115% year over year to $1.573 billion. Within that, U.S. commercial revenue increased 149%, while government revenue grew 90%. Adjusted earnings came in at $0.41 per share, beating consensus estimates by $0.06.
Looking ahead, management raised its full-year 2026 revenue guidance to $8.15 billion to $8.158 billion, implying roughly 82% annual growth. Moreover, the company increased its U.S. commercial revenue guidance to more than $3.424 billion, reflecting annual growth of at least 134%. Following the announcement, the stock gained as much as 14% to 15% in after-hours trading.
Jefferies Warns the Growth Bar Is About To Rise
On August 3, Jefferies analyst Brent Thill raised the firm’s price target on Palantir Technologies Inc. (NASDAQ:PLTR) from $70 to $80 but kept his Underperform rating, a rare bearish call after a record quarter. Thill didn’t dispute the quarter’s strength, but his concern is what comes next. The analyst’s concern is the increasing difficulty of sustaining exceptional growth as year-over-year comparisons become significantly tougher. According to Brent Thill, year-over-year growth hurdles rise from 67% in the second half of 2026 to 89% in the first half of 2027. That will make future outperformance increasingly harder, regardless of how well PLTR executes. He also highlighted moderating international growth, which leaves the company increasingly reliant on the United States for expansion.
Hedge Funds Are Still Buying In
The institutional ownership reflects a more constructive outlook. The number of hedge funds holding Palantir Technologies increased from 89 at the end of the fourth quarter of 2025 to 96 at the end of the first quarter of 2026. That trend suggests many professional investors remained confident in the company’s ability to maintain its growth trajectory at a time when AI was looking to disrupt many software companies, including Palantir, according to some analysts. Alex Karp has always denied any such threat, and hedge fund sentiment points to the same.
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