Palantir Raises FY Guidance to $7.66B after Q1 Revenue Soars 85%
Palantir reported Q1 2026 revenue of $1.63 billion, up 85% year-over-year, and raised full-year guidance to $7.66 billion while adjusted earnings rose 2.5-fold. The stock is down 23% over six months on a 155x trailing earnings multiple, though analysts forecast 114% upside to 2030 if 50% annual growth continues.
1. Q1 Financial Performance
Palantir delivered $1.63 billion in Q1 2026 revenue, marking an 85% increase year-over-year, the fastest growth rate since going public. Adjusted earnings rose 2.5-fold, underscoring expanding profitability alongside accelerating top-line momentum.
2. Stock Reaction and Valuation
Despite strong results, Palantir’s shares have fallen 23% over the past six months, reflecting investor concerns over its high valuation. The company trades at a 155x trailing earnings multiple, significantly above industry averages for software firms.
3. Guidance and Long-Term Outlook
Management raised full-year revenue guidance to $7.66 billion as it aims to sustain rapid expansion. Analysts project that maintaining a 50% compound annual growth rate through 2030 could support a 20x sales multiple and imply a 114% share price upside over five years.