Palantir Is Down 20% in 2026 and It's Still My Favorite Stock Idea: Here's Why

Palantir is down about 20% year-to-date in 2026, yet the author maintains it remains the top stock idea due to a strengthened growth narrative. As of May 28, shares hover near $143, well below the all-time high, while the company posted a resilient finish to 2025 with Q4 revenue up 70% year over year to $1.41 billion. U.S. commercial revenue rose 137% and total contract value reached $4.262 billion, up 138%. For fiscal 2026, Palantir guided revenue to $7.182–$7.198 billion, about 61% growth, with U.S. commercial revenue exceeding $3.144 billion. The stock trades at a rich multiple, with a prior 52-week range of $118.93–$207.52 and a consensus price target near $183.73, supported by roughly 18 buys and 10 holds. The balance sheet remains clean, with a debt-to-equity of 0.031 and net cash, reducing bankruptcy-style concerns as investors weigh volatility against a strong fundamentals backdrop.