Overview
- Michael Burry widened his short position in Palantir in the days before the earnings report, and the stock trades around $122 after falling roughly 27–31% year to date while gaining about 5% over the past 30 days.
- Palantir’s Q1 2026 results showed adjusted free cash flow of $925 million and adjusted EPS of $0.33, each up about 150% year over year, and management raised full‑year 2026 guidance to $4.2 billion–$4.4 billion in adjusted free cash flow and roughly $7.65 billion in revenue.
- A procedural win came when the U.S. Defense Intelligence Agency withdrew a solicitation that Palantir had protested, a move that supports the company’s government backlog but also delays that specific program’s deployment.
- Wall Street remains broadly constructive with a Moderate Buy consensus and an average price target near $181 plus several $200 targets, while bears argue conservative 20%–30% growth models make current multiples of over 100x forward earnings and a trailing price‑to‑sales near 65x hard to justify.
- The August 3 Q2 release is the key near‑term catalyst because investors will watch free cash flow and guidance to see if Palantir can convert backlog into repeatable revenue and margin growth, and that check will shape whether sentiment and the share price recover or fall further.