Palantir reports record quarterly revenue and profit, but stock dips on high expectations

Tue, 05 May 2026 19:11:00 +0200

Palantir Technologies reported record quarterly revenue and profit after the market closed, undershooting the more modest expectations set by already rich valuations. The data analytics and artificial‑intelligence firm posted sales of $1.63 billion for the first quarter of 2026, an 85% increase year over year, reflecting strong demand from U.S. government and commercial clients. Despite beating Wall Street estimates and raising its full‑year guidance, Palantir’s shares fell slightly more than 1% in premarket trading.

Analysts at Benchmark Equity Research attributed the drop to the fact that the market had already priced in an exceptionally strong performance, leaving little room for error. They noted that, at such a lofty valuation, investors are demanding revenue growth above roughly 70% to keep the stock supported. The episode underscores how even a solid earnings beat can weigh on a stock when the run‑up has been heavily driven by expectations rather than fundamentals. In this cont