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Palantir shares slide despite rapid revenue growth
Palantir is projected to grow 2026 revenue by roughly 71% after management raised full-year guidance twice.
Palantir Technologies stock is down more than 24% in 2026 even as the company reports strong momentum heading into Q2 earnings, according to MarketBeat Ratings. The stock has fallen about 35% from its November 2025 52-week high, and it has continued to churn in a sideways trading pattern as investors debate what the business is worth.
While the share price has weakened, the underlying results have strengthened. In the first quarter, revenue grew 85% year over year and management raised full-year guidance twice, now projecting roughly 71% revenue growth for 2026, with U.S. commercial revenue up more than 100%.
MarketBeat Ratings attributes the disconnect largely to valuation. Even with shares down close to 20% for the year, Palantir trades at a forward price-to-earnings multiple around 114x and a price-to-sales multiple around 70x, which the outlet notes are among the richest levels for large-cap software companies.
The outlet also points to competing views on where the stock should trade, with analysts split and the debate increasingly centered on pricing rather than operating performance, ahead of upcoming earnings.
Recent trading moves illustrate the year’s volatility, with shares jumping more than 9% on July 1 as a catalyst period played out, before enthusiasm cooled and the stock reverted to rangebound action.