New York, May 10, 2026, 18:03 (EDT)
- Palantir finished Friday at $137.80, ticking up 0.55%. Still, the stock hasn’t recovered to its level before this week’s earnings release.
- First-quarter revenue soared 85%, prompting the company to lift its 2026 revenue outlook.
- It’s all about valuation at this point—investors are sizing up brisk U.S. AI demand, but the stock remains tagged for almost flawless execution.
Palantir Technologies Inc has raised its 2026 revenue ambitions, but the stock remains below pre-earnings levels—suggesting investors are still debating whether the AI software heavyweight can deliver enough growth. The shares ended Friday at $137.80 on Nasdaq, up 0.55% for the day, yet still down from Monday’s $146.03 close, ahead of the earnings release.
The issue is drawing attention as Palantir serves as a litmus test for investor appetite when it comes to hefty valuations in AI-driven software for the public and private sectors. Market data pegged its value at roughly $354 billion, trading at a price-to-earnings ratio close to 155.
Palantir posted first-quarter revenue of $1.63 billion, up 85% year-over-year—the fastest rate since it went public. The company bumped its 2026 revenue forecast higher, now expecting between $7.65 billion and $7.66 billion. U.S. commercial revenue guidance also moved up, topping $3.22 billion, which would be a jump of at least 120%.
U.S. operations are driving results. Palantir’s U.S. revenue jumped 104% to $1.28 billion. On the commercial side, U.S. revenue surged 133% to $595 million, with government-related revenue also up—an 84% increase, hitting $687 million. According to Reuters, Palantir’s growth is riding on defense demand, notably projects like Maven. That’s the military’s AI tool for battlefield data analysis and target identification.
Chief Executive Alex Karp described the U.S. as “the center, the constant core” for Palantir and said business was “erupting.” The company put its Rule of 40 score at 145%—that’s revenue growth plus adjusted operating margin, a widely used shortcut in software for weighing growth against profitability. Reuters
Chief Financial Officer David Glazer signaled to investors that Palantir is bracing for higher expenses in 2026, citing stepped-up spending on products and technical hires, while still aiming to keep profitability on track. For the quarter, Palantir posted GAAP net income of $871 million and adjusted earnings landed at 33 cents a share.
Deal activity picked up, too. Palantir reported 206 deals in the quarter valued at $1 million or more, 47 of which topped the $10 million mark. Total contract value jumped 61%, reaching $2.41 billion—a figure that captures the potential lifetime worth of contracts signed or awarded.
The landscape is changing. Dion Hinchcliffe at Futurum Group points out that enterprise AI is leaving the “copilots” phase behind, heading into territory where systems are expected to act autonomously—with controls, auditability, and budgets in mind. That positions Palantir less as a rival to the usual AI model vendors, and more in direct competition with workflow giants like Microsoft, Salesforce, and ServiceNow. Futurum
The picture’s messy. Jefferies’ Brent Thill lowered his Palantir price target to $70, flagging the “key debate”: can growth keep outpacing a bigger base and tougher year-ago comps? The analyst pointed out Palantir shares could get hit if AI mania loses steam. Palantir itself, in filings, reminded investors that contracts can be ended for convenience and that its own forward-looking guidance isn’t risk-free. Business Insider
Next up: Palantir’s second-quarter guidance. The company is projecting revenue between $1.797 billion and $1.801 billion, with adjusted operating income ranging from $1.063 billion to $1.067 billion. The real question for investors isn’t about demand—that’s clearly there—but whether Palantir can keep translating that into revenue growth quickly enough to justify the stock’s premium.
