PLTR Reports Largest Quarterly Revenue Jump, Quadrupled Profits, But Valuation Concerns Persist

• Q1 revenue jumped by 85%, the company’s fastest growth on record. 
• Earnings of $0.34 per share beat expectations of $0.28.
• Sees 2026 revenue soar by 120%.

Palantir (PLTR) stock fell after-hours, reversing early gains as the company’s bloated valuations overshadowed its first strong quarter earnings, while its forecast-beating second quarter and full-year guidance limited further dip in prices. 

Its revenue for the quarter jumped 85%, the highest-ever year-over-year growth rate in any quarter, owing to massive U.S. government contract wins and a surge in revenue from commercial contracts. 

PLTR’s revenue from the U.S. government grew 84% year-over-year and 21% quarter-over-quarter to $687 million, and its commercial revenue grew 133% year-over-year and 18% quarter-over-quarter to $595 million. 

Net income roughly quadrupled to $870.5 million, or $0.34 per share, from a year earlier, beating expectations of $0.28 per share. 

“Our financial results now demonstrate a level of strength that dwarfs the performance of essentially every software company in history at this scale,” said CEO Alex Karp in a letter to shareholders. 

Palantir’s recent U.S. defense contracts and a rising commercial customer base for its Artificial Intelligence Platform (AIP) have helped the firm beat market expectations for 11 consecutive quarters. 

For instance, the United States Department of Agriculture (USDA) awarded Palantir a contract of up to $300 million last month to provide USDA with capabilities to support American farmers secure farmland, enhance supply chain resilience, and shield agricultural programs from fraud, abuse, and foreign adversary influence. 

The software developer closed 206 deals of at least $1 million, 72 deals of at least $5 million, and 47 deals of at least $10 million during the quarter ending March 2026.

PLTR Q2 And 2026 Guidance

PLTR sees Q2 revenue between $1.797 - $1.801 billion, far exceeding expectations of $1.680 billion. The firm also raised its full-year revenue guidance to between $7.65 - $7.66 billion, beating expectations of $7.28 billion.  

The company also forecast full-year income from its U.S. commercial business to hit an excess of $3.22 billion, 120% higher than the previous year. 

PLTR Valuations 

Palantir’s stretched multiples have been a deterrent for investors. Its trailing price-to-equity (p/e) ratio has often surged past 200 times, hovering around 131 times at the end of April, roughly 6 times higher than the average software company. 

Its 12-month forward p/e currently trades at 50.6 times earnings. 

PLTR Retail View 

Retail sentiment on Stocktwits was ‘bullish’ and message volumes were ‘high’ 

One user expressed concern over the muted stock reaction following the bumper results. 

Another user did not expect the stock to move due to its massive p/e ratio. 

The stock has lost 19% year-to-date. 

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