Guidance Watch: 2 Companies Bullishly Raising Forecasts

Earnings Overview - The 2025 Q2 earnings cycle has shown resilience, with total earnings for 457 S&P 500 companies up by 11.6% year-over-year, driven by a 5.8% increase in revenues [1] - 80.5% of companies exceeded EPS estimates, while 78.8% surpassed revenue estimates, indicating strong overall performance [1] Palantir Insights - Palantir has emerged as a leading AI stock, reporting a 15% EPS beat and a 7% positive sales surprise in Q2 [2] - US commercial revenue surged by 93% year-over-year, with US government revenue increasing by 53%, contributing to total sales growth of 48% [2] - The company has raised guidance for FY25, projecting 45% year-over-year growth in sales [3] - Analysts have adjusted EPS expectations upward, forecasting 60% EPS growth on 45% higher sales for the current fiscal year [4] Eli Lilly Performance - Eli Lilly's Q2 sales reached $15.5 billion, reflecting a 38% year-over-year increase and a 6% surprise over consensus estimates [8] - Key products Zepbound and Mounjaro saw sales growth of 172% and 68%, respectively, driving the positive quarter [8] - Following strong results, Eli Lilly increased its FY25 revenue and adjusted EPS guidance, with gross margin rising to 84.3% from 80.8% year-over-year [12] - Insider buying from directors and the CEO post-earnings indicates confidence in the company's long-term outlook [13] Market Outlook - The overall sentiment for Q3 earnings remains positive, with expectations gradually increasing [6][14] - Both Palantir and Eli Lilly have been highlighted for their strong results and guidance upgrades during the Q2 earnings cycle [14]