Palantir Technologies (NASDAQ: PLTR) has one of the fastest-growing artificial intelligence (AI) businesses on the planet, and as more clients want a piece of its proprietary data analytics platform, growth has been accelerating. The company just reported outstanding first-quarter performance, trouncing Wall Street’s expectations, but Palantir stock remained roughly flat after the report, and it’s 29% off its all-time high.
Let’s see what’s happening and try to predict where it might be in five years.
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Accelerating growth
Palantir’s first-quarter results were phenomenal. Revenue is accelerating, profit margins are high, and it’s onboarding new clients. Although business is booming all around, its greatest opportunities are in U.S. commercial growth.
Here’s how sales have increased over the past few quarters, along with operating margin.
Metric
Q1 26
Q4 25
Q3 25
Q2 25
Total revenue growth
85%
70%
63%
48%
U.S. commercial growth
133%
137%
121%
93%
Operating margin
46%
41%
33%
27%
Data source: Palantir quarterly reports. All growth is year over year.
While the market continues to worry about hyperscaler spending and AI monetization, Palantir offers real value using AI and machine learning for its clients. It offers a number of different products that help governments, militaries, and commercial outfits collect data from different places, analyze it, and make critical, informed decisions. That’s a tremendous benefit for any organization that wants to become efficient and beat the competition.
CEO Alex Karp noted that the U.S. military, using Palantir’s platform, is “dominating on the battlefield,” and that “the current environment is actually being transformed by the Palantir Technologies Inc. platform.”
Why is Palantir stock down?
Although Palantir…
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