Palantir’s 47% Earnings Rally: Time to Buy the Rumor Again?

Palantir Technologies (PLTR) is once again making waves in the AI sector, climbing 5.6% to $122.69 on Friday, just ahead of its anticipated earnings report on Monday.

The rally puts Palantir within striking distance of its all-time high from February ($125.41), reinforcing the idea that investors are buying the rumor — just as they did last quarter.

The setup feels familiar.

Last quarter, Palantir shares surged 13% into earnings and the company delivered, beating expectations and upgrading its revenue and earnings outlook.

This time, it’s not just technical momentum driving the stock higher. There’s renewed confidence in the AI sector following strong results from Microsoft, Google, META, and Amazon — all of which emphasized that AI investment remains a top priority despite broader economic headwinds.

Adding fuel to the fire, Palantir received a positive mention in Barron’s and analysts are increasingly discussing the company’s growing government contracts, especially with the Department of Defense and Department of Justice. That business remains the cornerstone of Palantir’s long-term growth narrative.

But Wall Street still isn’t sold.

Despite strong performance, analysts continue to criticize Palantir’s valuation, labeling it overbought and overdue for a correction.

CEO Alex Karp has leaned into that skepticism, using it to frame the company as an outsider with something to prove — and so far, it’s worked.

The disconnect between bearish analyst sentiment and bullish stock behavior is a major tailwind, particularly heading into an earnings event.

Technically, the stock is flashing all the same bullish signals as last quarter. Shares have gained more than 7% over the past week with increasing volume, and the 50-day moving average just flipped back into a bullish trend after a brief neutral stretch.

So, what should investors do?

Last quarter, Palantir crushed expectations. Revenue hit $827.5 million, up 36% year-over-year, with U.S. sales jumping 52% thanks to strong government demand. EPS came in at $0.14, easily beating estimates. The stock popped 23% on the results, and for good reason—this was the company’s fourth straight earnings beat and another major win for its AI strategy.

Once again, Palantir proved the bears wrong and showed why it’s a core name in the AI trade.

• Expect volatility Monday. If earnings disappoint, look for a pullback toward the $100 level — a strong “buy the dip” zone.
• If earnings beat again, a breakout rally of 40–50% is not out of the question, but long-term investors should wait for a retracement to the $125 range before adding new positions.

Bottom line: Palantir remains one of the most explosive AI software plays on the market, with growing government contracts, technical strength, and a rare advantage — a wall of doubt it keeps proving wrong.