Splunk (NASDAQ:SPLK) stock climbed higher on Thursday as investors weighed the company’s value in the artificial intelligence (AI) market.
The reason investors are paying attention to SPLK stock today is the company’s Q2 earnings report beating estimates. That includes earnings per share of 71 cents and revenue of $910.58 million, coming in above Wall Street’s estimates of 47 cents per share and revenue of $888.6 million.
To go along with that earnings beat, Splunk also provided strong revenue guidance for Q3 2023. The company expects revenue to come in between $1.02 billion and $1.035 billion. That would have it beating out analysts’ revenue estimate of $982 million for the quarter.
What to Expect From SPLK Stock
With the latest earnings beat and strong guidance, analysts are taking note of Splunk. Here’s what Evercore ISI analyst Kirk Materne said about the company in a note to clients, as reported by Barron’s:
“While Splunk remains off most investor radar screens (for now), management continues to deliver on driving more profitable growth, and we believe Splunk remains one of the more idiosyncratic stories in software heading into the second half of 2023 and 2024.”
Investors will also note that Evercore ISI has a bullish stance on SPLK stock. That includes an “outperform” rating as well as a price target of $125 per share. That price target represents a potential upside of 25% compared to yesterday’s close.
Today’s news has investors buying up shares of SPLK stock with some 2.4 million units trading hands. That’s already well above its daily average trading volume of about 1.5 million shares. It also has the stock up 13.9% as of Thursday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
