Palantir Technologies (PLTR, Financials), the data analytics and artificial intelligence software business, is expected to produce better-than-expected second-quarter results when it reports earnings on Aug. 3, Oppenheimer said.
The firm forecasts sales to be up around 85% from a year ago, over Palantir's guidance for growth of about 79%. It also expects the company to improve its full-year outlook above its existing outlook for sales growth of 71%.
Oppenheimer said business with the U.S. government remains the biggest source of growth. It is benefiting from increased spending by the Department of Homeland Security and growing activity across a number of U.S. military services and combatant commands. The company forecasts more tepid growth in foreign government as certain European allies examine other providers.
Oppenheimer said concerns that major language model providers could weaken Palantir's competitive position in the commercial industry appear overblown. The firm believes Palantir's Ontology platform can handle more sophisticated enterprise workflows than other AI products.
Analysts are now forecasting adjusted earnings of $0.35 a share on $1.81 billion in revenue, up from $0.16 a share and $1 billion in revenue a year ago.
Now all eyes will be on whether Palantir can deliver another guidance raise to keep up its strong government and commercial momentum.