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Palantir Lifts 2026 Outlook After Blowout Quarter as Valuation Jitters Weigh on Shares

Investors question the rich price tag despite record growth.

Overview

  • Palantir reported first‑quarter revenue of $1.633 billion, up 85% year over year, with $925 million in adjusted free cash flow and an FCF margin near 56%.
  • Management raised full‑year 2026 guidance to $7.65–$7.662 billion in revenue and $4.2–$4.4 billion in adjusted free cash flow.
  • Growth was led by the United States, where commercial revenue jumped 133% to $595 million and government revenue rose 84% to $687 million, taking total U.S. sales to $1.282 billion, up 104%.
  • The shares fell after the report as investors balked at rich valuation multiples, even as Citi, Rosenblatt, and Bank of America lifted price targets, with Citi moving to $225.
  • New wins and use cases highlighted traction, including a U.S. Department of Agriculture contract worth up to $300 million and a Navy program that cut one approval process from 160 hours to 10 minutes using Palantir’s software.