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Palantir’s Blowout Q1 Triggers Upgrades as Shares Swing on Valuation Fears

Explosive growth in U.S. defense work now anchors the case for faster AI adoption.

Overview

  • Palantir, which reported Q1 results Tuesday, beat forecasts with $1.63 billion in revenue and 33 cents adjusted EPS and raised its full‑year outlook.
  • Company leaders said revenue grew about 85% year over year, with the U.S. business now 79% of sales after climbing roughly 104%.
  • Rosenblatt lifted its target to $225, Argus upgraded to Buy with a $190 target, and Piper Sandler kept Overweight at $230, citing AIP’s controls and integration as a key edge.
  • The stock remains choppy and below 2025 highs, with reports showing a near 23% drop this year and a post‑earnings dip as investors debate how the results square with the valuation.
  • Analysts say demand is outpacing Palantir’s ability to deploy software, and the company is deepening defense ties by joining the U.S. Army’s Right to Integrate hackathon to advance system interoperability.