• Palantir is expected to report a 62.8% increase in revenue and a 64.3% rise in EPS year-over-year, driven by strong demand in government and commercial segments.
• The stock is trading at high valuation multiples, with 147 times forward earnings and 543 times EV/EBITDA, raising concerns about its expensive price tag.
• Despite a nearly 100% rally over the past year, Palantir's stock is showing signs of vulnerability, testing a critical support level and indicating potential shifts in momentum.

Palantir Technologies Inc. (NASDAQ: PLTR) is a prominent player in the software industry, known for its data analytics platforms that serve both government and commercial sectors. The company is set to release its quarterly earnings on February 2, 2026, with Wall Street analysts estimating an earnings per share (EPS) of $0.23 and revenue of approximately $1.34 billion.

Analysts are optimistic about Palantir's growth, anticipating a 62.8% increase in revenue to around $1.35 billion and a 64.3% rise in EPS compared to the same quarter last year. This growth is driven by strong demand in both its government and commercial segments, which are projected to grow by 55.4% and 73.5%, respectively.

Despite these positive projections, Palantir's stock is considered expensive, trading at 147 times forward earnings and 543 times EV/EBITDA. Historically, Palantir has exceeded earnings expectations in three of the last four quarters, as highlighted by Zacks. However, the high valuation and lack of a clear signal for an earnings beat have tempered investor enthusiasm.

Palantir's stock has experienced a nearly 100% rally over the past year but is now testing a critical support level, the 200-day moving average. On Wednesday, the stock closed at $157.35, falling below this level for the first time since May 2023. The stock's momentum has shifted, with the MACD indicator deeply negative and the RSI at 31.7, indicating vulnerability.

Since its IPO in 2020, Palantir's stock has soared by 1,600%, driven by its strong earnings momentum and the launch of its Artificial Intelligence Platform (AIP) in 2023. The AIP has attracted a significant number of customers, driving revenue gains. As Palantir approaches its earnings release, historical patterns suggest this event may significantly impact the stock's trajectory.