NEW YORK, May 29, 2026, 06:01 (EDT)
- Palantir last traded at $143.34 ahead of the regular U.S. session, up $10.82 from its previous close.
- A wider rally in artificial intelligence and defense shares came after news about U.S. drone funding, with traders reacting to the reports.
- Valuation is the risk. Palantir shares still fetch a high earnings multiple.
Palantir Technologies Inc. was quoted at $143.34 late in premarket trade Friday, recovering more than 8% from Thursday’s close as buyers came back into artificial intelligence and defense-focused software stocks ahead of the U.S. session.
Timing is key. U.S. stock futures barely moved after the main indexes put up fresh highs, with traders sticking to the AI trade and hoping for solid earnings. Investors also kept an eye on news out of the Middle East and inflation numbers. Nasdaq 100 futures saw little change as of 04:46 a.m. ET, according to Reuters.
Palantir caught a bounce after Reuters, citing the Wall Street Journal, said the Trump administration was talking about funding U.S. drone firms like Unusual Machines and Neros. Palantir didn’t come up as a funding name, but defense and drone stocks moved up, as traders focused again on software for military and intelligence.
Palantir’s pitch comes down to AI backed by government contracts. The company provides data and decision software to governments and businesses. Its Artificial Intelligence Platform, or AIP, is pitched as a way for customers to use AI models in real operations, not just in testing.
Palantir’s main data point is the May 4 earnings report. First-quarter revenue climbed 85% from last year to $1.63 billion. Revenue from the U.S. jumped 104%. U.S. commercial revenue added 133%, while U.S. government revenue was up 84%.
Palantir CEO Alex Karp said in the release that “momentum surged” and pointed to the company’s highest-ever year-over-year growth rate. Palantir lifted its 2026 revenue outlook, now guiding to $7.65 billion to $7.66 billion. SEC
Palantir shares have gotten more upbeat calls lately even as analyst opinions remain mixed. Rosenblatt, Citigroup, and Argus are the latest firms tracked by Benzinga to update on Palantir, with those targets averaging $213.33. Rosenblatt stuck with a buy and a $225 price target in its May 21 note.
Peer pressure is also a factor. Snowflake, the data-cloud company fighting for AI business, was last up over 36% following strong numbers and AI buzz. Datadog traded around 1.6% higher. The QQQ ETF, which tracks big tech, added 0.8%.
Palantir has turned into a gauge of how much investors want to pay for AI infrastructure names, not just a one-off trade. Reuters said big indexes are getting a lift from new AI enthusiasm and hopes for earnings growth, with Dell jumping after it boosted its outlook on better demand for AI servers using Nvidia chips.
Drone-funding report still unconfirmed for Palantir. Reuters said it couldn’t independently confirm the WSJ report, and said the White House, Pentagon, and companies didn’t comment right away. The proposals on the table could involve debt and equity deals that would give the government ownership positions.
Valuation is tough. Palantir trades at around 161 times earnings, much higher than most big software stocks. That doesn’t leave much cushion if contract wins slow down, federal spending drops, or investors turn away from pricey AI shares.
Buyers so far seem satisfied with the May earnings beat, the new guidance, and the defense-AI angle keeping the stock’s rebound in play. The next test is Friday’s regular session. That will show if Thursday’s pop holds or gets faded like other quick squeezes in this busy stock.
