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Palantir Posts Blowout Q1 and Higher Guidance as Shares Fall on Lofty Valuation

The split reaction suggests investors doubt rapid AI-fueled gains can persist at Palantir’s current price.

Overview

  • Palantir reported adjusted earnings of $0.33 a share on $1.63 billion in revenue, growing about 84% to 85%, and it raised second-quarter and full-year targets across key metrics.
  • The stock dropped roughly 7% in afternoon trading after the report, reflecting concern that its high price tag leaves little room for any cooling in AI spending.
  • U.S. commercial revenue reached $595 million in the quarter versus $605 million expected, while full-year guidance for that segment rose to $3.224 billion, ahead of Wall Street’s view.
  • Sales momentum stayed broad, with U.S. commercial revenue up 133% and U.S. government revenue up 84%, and the company cited 72 deals near $5 million and 47 at $10 million or more.
  • Analysts split after the print as Bank of America reiterated a Buy with a $255 target and higher 2026 forecasts, while Jefferies went Underweight with a $70 target, warning that any slowdown or AI fatigue could hit growth.