Benchmark Reiterates Hold on Palantir

Benchmark analyst Yi Fun Lee reiterated a Hold rating on Palantir (NASDAQ: PLTR).

“We reiterate our Hold rating on Palantir post an exceptional 2Q26, proving why it deserves top of the SaaS/software class valuation.

As expected, the company easily cruised past FactSet consensus on revenue +6.8% upside, operating income/margin +10.5% beat, and free cash flow/margin +9.0% upside.

The company delivered another exceptional quarter, continuing one of the strongest growth and profitability profiles across software and reinforcing Palantir’s position as one of the largest beneficiaries of enterprise AI adoption.

Palantir’s first class fundamentals delivering at a Rule of 155 (1Q26 was 127+) is rightfully in a league of its own, and we don’t think we can find another AI SaaS/software commanding a triple digital Rule of 40 score while targeting a revenue scale of +$8 billion this year.

Palantir is dominating as a trusted high clearance provider for the domestic U.S. government/military as well as commercial enterprise, and we believe the market has already rewarded the company with the mountain top valuation to price in this performance.

The execution speaks for itself, delivering large to mega transaction sizes in closing 220 deals +$1M, 98 deals +$5M, and 73 deals +$10M.

U.S. segment remained the primary growth engine, with revenue increasing 115% y/y, supported by record bookings activity, 157% net dollar retention, and continued customer expansion across both commercial and government markets offset by international growth of 33%.”

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