Data analytics software giant Palantir Technologies (PLTR) will announce its results for the first quarter of 2026 today, May 4, and the options market is expecting a volatile reaction. Based on options pricing, traders are expecting a 9.82% move in either direction in PLTR stock following its Q1 2026 earnings. This implied move is slightly higher than the stock’s average post-earnings move (in absolute terms) of 9.28% over the past three quarters.
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PLTR shares have declined 19% year-to-date due to concerns about the stock’s elevated valuation and ability to sustain high growth rates.
What to Watch in Palantir’s Q1 Earnings
Investors are looking for the company to prove it can maintain its rapid growth in a competitive AI market.
Rapid Sales Growth: Wall Street expects a huge jump in revenue this quarter. Analysts are looking for record sales of about $1.54 billion, which would be a 74% increase from a year ago. Investors will check if the company is on track to hit its massive full-year target of $7.18 billion to $7.19 billion.
Growing AI Momentum: The biggest focus is Palantir’s Artificial Intelligence Platform (AIP). Investors want to see if more businesses are signing up and sticking with the platform. Sales to U.S. companies are expected to lead the way, with management previously predicting this segment will grow at least 115% this year.
Rising Profits: Palantir is now consistently profitable, and investors expect that to continue. Analysts expect the company to report earnings of $0.28 per share in Q1, which would be more than double what the company earned in the same quarter last year. The company has also promised to remain profitable in every single quarter of 2026.
Government Contracts: While the commercial side is booming, the government business is also important for steady cash flow. Investors will watch for any major new deals with the U.S. military or international agencies to see if that side of the business is picking up speed again.
Is PLTR Stock a Buy Now?
Overall, Wall Street has a Moderate Buy consensus rating on Palantir Technologies stock based on 15 Holds, five Buys, and two Sell recommendations. The average PLTR stock price target of $191.74 indicates 37.8% upside potential.
