Palantir Stock Edges Higher to $137.21 Amid Strong Q1 Results and Raised Guidance

NEW YORK — Palantir Technologies Inc. (NASDAQ: PLTR) shares traded at $137.21, up 0.06 or 0.044%, in morning trading on Thursday, May 21, 2026, as investors continued to digest the company's record first-quarter performance and upward revision to full-year guidance.

The stock closed at $137.15 on May 20. It has experienced significant volatility in 2026 but has remained elevated following robust earnings reported on May 4.

Palantir reported first-quarter 2026 revenue of $1.633 billion, an 85% increase from the prior year and above consensus estimates. U.S. revenue grew 104% year-over-year to $1.282 billion, while U.S. commercial revenue surged 133% to $595 million.

CEO Alex Karp stated in the earnings release: "Palantir's Rule of 40 score has soared to 145%. We grew 85% last quarter—our highest-ever year-over-year growth rate—by more than doubling our U.S. business, and now we are raising our full-year revenue guidance to 71% growth."

The company raised its full-year 2026 revenue guidance to $7.65 billion to $7.66 billion, representing 71% growth. It also increased its U.S. commercial revenue guidance to approximately $3.22 billion, or 120% growth.

Adjusted income from operations reached $984 million in the first quarter, representing a 60% margin. GAAP income from operations was $754 million, or a 46% margin. The company reported strong cash flow with adjusted free cash flow of $925 million.

Palantir 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. International customers accounted for a growing portion of revenue.

The company continues to expand its artificial intelligence platform, including commercial adoption of its Gotham, Foundry and AIP offerings. Government contracts remain a core part of the business, with U.S. government revenue growing 84% year-over-year to $687 million.

Market capitalization stood near $310 billion in recent sessions. The stock has traded in a 52-week range reflecting strong investor interest in AI-driven software platforms. Analyst consensus remains largely positive, with several firms maintaining buy ratings and price targets above current levels.

Rosenblatt Securities maintained a buy rating with a $225 price target as of May 21. Other analysts have highlighted Palantir's execution on commercial growth and technical advancements.

Palantir operates as a software company focused on big data analytics and AI. Its platforms are used by government agencies, large enterprises and organizations for mission-critical decision-making. The company has emphasized responsible AI deployment and has expanded partnerships across sectors.

No new corporate announcements were released on May 21. The next earnings report for the second quarter of 2026 is expected in early August. Management has focused on scaling commercial operations while maintaining strong government relationships.

Palantir was founded in 2003 and went public through a direct listing in 2020. It has grown significantly in recent years, driven by demand for AI and data analytics solutions. The company employs thousands worldwide and maintains offices in multiple countries.

Trading volume on May 21 was in line with recent averages in morning sessions. The stock has shown resilience amid broader market fluctuations, supported by consistent execution against financial targets.

Investors continue to monitor Palantir's progress toward larger commercial contracts and its ability to sustain high growth rates. The company's Rule of 40 score, which combines revenue growth and profitability margins, reached 145% in the first quarter.

Palantir has not provided specific second-quarter guidance details beyond the full-year outlook. It expects continued strength in both government and commercial segments.

The stock's performance reflects ongoing market enthusiasm for AI-related companies with proven commercial traction and strong financial metrics. Palantir remains one of the more prominent publicly traded AI software firms.