Palantir Technologies Delivers Record Growth but Stock Slips
Palantir Technologies reported its fastest sales growth since at least 2020 and raised its full-year 2026 outlook well above Wall Street expectations. Despite the strong performance, shares declined დაახლოებით 3% in premarket trading on Tuesday.
Revenue Guidance Raised Above Expectations
CEO Alex Karp announced a significant upgrade to the company’s revenue outlook, citing strong momentum in the U.S. market.
The company now expects full-year revenue between $7.65 billion and $7.66 billion, up from its previous guidance of $7.18 billion to $7.20 billion and above the $7.2 billion consensus estimate.
Strong Q1 Performance Driven by U.S. Growth
Palantir posted first-quarter 2026 revenue of $1.63 billion, marking an 85% year-over-year increase—its highest growth rate since going public.
This surge was largely fueled by exceptional performance in the U.S., where total revenue grew 104%. U.S. commercial revenue jumped 133%, while government revenue rose 84%. The company also secured 206 deals valued at $1 million or more during the quarter.
AI Momentum and Profitability Metrics
Palantir highlighted its strong operational efficiency, with its “Rule of 40” metric reaching 145%, a level comparable to leading AI infrastructure players such as NVIDIA, Micron Technology, and SK hynix.
The company reported adjusted operating income of $984 million and adjusted earnings per share (EPS) of $0.33, exceeding analyst estimates of $0.28.
Upgraded Profit and Cash Flow Outlook
Palantir also increased its full-year guidance for adjusted operating income to a range of $4.44 billion to $4.452 billion. Adjusted free cash flow is now expected to come in between $4.2 billion and $4.4 billion.
Analysts Praise Growth but Flag Valuation Concerns
Analysts at Truist Securities described the results as another strong “beat-and-raise,” reinforcing Palantir’s role as a key infrastructure provider in enterprise AI.
However, analysts at Jefferies cautioned that valuation remains a major concern. Even assuming revenue reaches $12 billion by 2027, the stock is trading at approximately 31 times forward enterprise value-to-revenue—a level they consider stretched.
They added that while Palantir’s fundamentals are strong, the current valuation requires exceptionally optimistic assumptions about long-term growth.
