Palantir Technologies' Next Earnings Report on Aug. 3 Could Send the Stock Soaring. Here's Why.

With all the attention artificial intelligence infrastructure stocks are getting these days, AI software companies putting that tech to work tend to get overlooked. Palantir Technologies (NASDAQ:PLTR), the data analytics software company, is down 31% this year and has crashed more than 40% from its all-time highs.

But Palantir is set to report its second-quarter earnings after the close on Aug. 3, and I think it’s a good time for investors to reconsider Alex Karp’s company. I’m expecting big things from the Q2 report, and I think Palantir will remind everyone how strong this company’s growth story really is.

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What is Palantir?

Palantir uses specialized software to collect data points from thousands of sources. Palantir uses that information to provide real-time insights to its customers, which range from the military and government intelligence agencies to commercial businesses.

The company began its dynamic growth in 2023 when it incorporated its Artificial Intelligence Platform (AIP) into its Foundry and Gotham products, opening the door for users to use large language models to pose queries and complete tasks.

For commercial customers, Palantir is using its Foundry platform and AIP to replace customer service software with AI-based systems powered by Palantir’s Ontology System, which creates digital models of organizations, enabling AI to understand how people, processes, and assets are connected and to take actions based on that context.

And for military customers, Palantir’s software includes the Maven Smart System, an AI-powered platform that fuses battlefield data streams to improve military targeting and decision-making. Usage of the Maven system doubled in the first quarter of 2026 and has increased 4-fold over the last 12 months, the company says.

These products have driven Palantir’s rapid expansion in commercial and government AI.

What to expect from Palantir’s earnings

The interesting thing about Palantir is that three years after the debut of AIP, its revenue growth is continuing to expand dramatically. Revenue growth in the first quarter was 85% on a year-over-year basis, with net income growth 53%. Palantir’s U.S. commercial revenue grew an impressive 133% -- the third consecutive quarter of triple-digit growth -- and U.S. government revenue increased by 84%.

Palantir issued guidance for second-quarter revenue of about $1.8 billion, representing 80% growth from a year ago. That’s also in line with analysts’ expectations, based on 24 surveyed by Yahoo! Finance. Those analysts are also expecting Palantir’s earnings per share to be $0.35, up from $0.16 a year ago.

Why I’m bullish on Palantir stock

Palantir continues to have an impressive growth story that isn’t slowing down. After all, this is a company that averages more than two million-dollar deals a day -- the company announced in the first quarter that it closed 206 deals valued at least $1 million, with 47 of them valued at least $10 million. Its total contract value closed in the quarter was $2.41 billion.

Clearly, there’s a lot of revenue to be had with Palantir, and the company is growing while still maintaining a slim headcount. Karp noted on the most recent earnings call that despite having only a handful of salespeople, the company’s free cash flow in Q1 exceeded its total revenue for Q1 2025.

I fully expect Palantir to post another monster quarter after the closing bell on Aug. 3, and for Alex Karp’s company to again show it’s one of the best AI software companies to buy today.

Patrick Sanders has positions in Palantir Technologies. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.