Palantir stock surged about 4% on Thursday following its strongest earnings report on record, with analyst upgrades and a raised full-year revenue forecast driving continued buying interest.

Palantir announced first-quarter 2026 results on May 4 showing sharply higher revenue growth led by a surge in U.S. commercial demand and expanding adoption of its AI-driven software platforms, along with a significant jump in profitability metrics.

Argus Research upgraded Palantir from Hold to Buy on May 7 and raised its price target to $190, citing better-than-expected performance. The company raised its 2026 revenue forecast by about 10 percentage points, signaling expectations for continued strong expansion driven by AI demand across government and enterprise clients.

Renewed analyst optimism and sustained enthusiasm around AI software adoption helped reverse earlier profit-taking sentiment, driving fresh institutional buying on Thursday.