Palantir reports Q1 2026 results as investors watch guidance and AI competition

Palantir Technologies Inc., a data analytics and decision-making sosourcesware company, reported first-quarter 2026 results asourceser the market close on May 4, 2026.

Investors are focused on the company’s outlook as they weigh its valuation and intensifying competition in AI sosourcesware.

What analysts expected for the quarter

Consensus estimates called for adjusted earnings per share (EPS) of $0.28, revenue of about $1.5 billion, and a 54% free cash flow margin.

Those forecasts implied sharp year-over-year growth, including 115% adjusted EPS growth and 75% revenue growth.

Competition and recent analyst caution

Some analysts have flagged competitive risks.

HSBC analyst Stephen Bersey downgraded Palantir shares from buy to hold on May 1 and cut his price target by $54 to $205 per share.

Bersey pointed to the emergence of similar AI coding accessibility offerings from competitors including OpenAI and Anthropic, arguing these products could erode Palantir’s competitive advantages.

What’s in focus beyond the quarter

For the second quarter, consensus estimates anticipate nearly $1.68 billion in revenue and $950 million in adjusted income from operations.

Management’s full-year guidance projects revenue between $7.182 billion and $7.198 billion, and U.S. commercial revenue growth of at least 115% to $3.144 billion.