Overview
- This week the stock fell to its lowest level in a year after breaking key technical support below roughly $127 and trading well under its 50‑ and 200‑day moving averages.
- Palantir reported a strong Q1 2026 with revenue up 85% to $1.63 billion, adjusted EPS of $0.33, and raised full‑year revenue guidance to about $7.65–$7.66 billion.
- The company added $2.4 billion in new contracts in Q1 and carried a remaining deal value of $11.8 billion, a pipeline metric that signals future revenue if contracts convert on schedule.
- Wall Street price targets remain well above current levels — the average is near $190 and firms like Wedbush and UBS keep $230 and $200 targets — creating a wide gap between analyst views and market prices.
- Investors say the selloff reflects fears that AI agents will compress enterprise‑software pricing, dependence on third‑party models, and execution risk in turning backlog into sustained profits, which could pressure hiring, partner deals, and future guidance if conversion lags.