Palantir shares jumped 10% on Friday, putting the stock on track for its best week since November 2024, after second-quarter results showed U.S. commercial contract value surging 153% from a year earlier. The rally is reshaping Wall Street's view of the company, with analysts at William Blair and Deutsche Bank turning more bullish this week.
Palantir shares rose 10% in Friday trading, putting the stock on track for a 39% weekly gain — its best weekly performance since November 2024, according to Dow Jones Market Data.
The rally follows a quarter Palantir CEO Alex Karp called "anomalously strong" earlier this week, and Wall Street now appears to agree. The stock's previous record week, in November 2024, also came after an earnings beat, when Palantir first showed monetization of its Artificial Intelligence Platform.
U.S. commercial demand drives the surge
Palantir's U.S. commercial segment has become its biggest growth driver, increasing 149% from a year earlier. The company closed more than $2 billion in U.S. commercial total contract value in the second quarter, a 153% jump from the same period a year before.
The company has pushed sovereign AI, giving organizations autonomy over their own data and models — a position that has put it at odds with leading AI labs, which Karp has said look to absorb customers' data and business intelligence rather than let them keep control of it. The approach appears to be resonating with Palantir's own clients, who use its platform to connect disparate data sources and run AI models across their operations.
Analyst ratings turn more bullish
Palantir's rebound marks a reversal from earlier this year. Palantir was lauded as an AI darling in 2025, but shares fell as much as 40% year-to-date by late June as the stock got caught up in a broader software selloff. By Friday, it was close to breaking even for the year.
William Blair analyst Louie DiPalma wrote in a Tuesday note that Palantir's earnings beat defies concerns that competition from Anthropic and OpenAI is intensifying in enterprise AI. Deutsche Bank analyst Brad Zelnick upgraded his rating on the stock to buy from hold after the report, pointing to Palantir's ability to deliver valuable AI applications to customers while many legacy software makers are still working to make that shift.
Source: MarketWatch
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