Can Palantir's Sizzling Growth Win Over Market Bears?

Palantir is set to report its latest quarterly results this afternoon amid heightened market skepticism about AI valuation. The company posted $1.6 billion in first-quarter revenue, an 85% year-over-year jump, but shares are down 31% in 2026. A more aggressive second-quarter sales forecast of $1.8 billion, up 80%, hasn’t stopped the broader selloff in software stocks. Options pricing suggests traders expect a sharp move of up to 10% around the announcement. Palantir is known for its Gotham platform serving government, defense and intelligence, where US revenue rose 84% year over year to $687 million. US commercial revenue increased 133% to $595 million, though bears cite an extreme price-to-earnings ratio.