By Daniel Sparks
Publication Date: 2026-05-05 03:47:00
After Monday’s market close, Palantir Technologies (PLTR +1.36%) reported a remarkable first quarter. Revenue rose 85% year over year — the artificial intelligence (AI) data analytics specialist’s fastest growth rate as a public company — and management raised its full-year revenue guidance from 61% growth to 71%. With numbers like these, some investors may be wondering if the AI-focused software company now deserves the AI throne — in terms of investor attention — currently held by AI chipmaker Nvidia (NVDA +0.04%).
But there’s a catch: A great business doesn’t always translate to a great stock. And while Palantir’s results may be extraordinary, the stock’s valuation could already price in years of equally extraordinary execution.
Image source: Getty Images.
Growth keeps speeding up
The growth story at Palantir remains truly exceptional. In fact, it’s getting better.
The company’s year-over-year revenue growth rate climbed sequentially in every quarter of 2025, going from 39% to 48% to 63% to 70%. With the first quarter of 2026 now in the books, that streak is up to 11 consecutive quarters of accelerating growth — and 85% is the highest reading yet.
Even more striking is what’s happening specifically in Palantir’s U.S. business.
U.S. revenue rose 104% year over year to $1.28 billion — the first time that figure has cleared 100% growth since Palantir went public. The U.S. commercial segment surged 133% to $595 million, and U.S. government revenue rose 84% to $687…
