Is Palantir (PLTR) Stock a Buy Ahead of Monday’s Q1 Earnings?

TLDR

• Palantir is scheduled to release its Q1 2026 financial results on Monday, May 4, following the market close.
• Market analysts anticipate earnings per share (EPS) of $0.28, representing a 115% increase compared to the previous year.
• Projections indicate record revenue of $1.54 billion, a 74% rise year-over-year.
• Based on options market activity, traders are anticipating a volatility swing of approximately 10% in either direction following the earnings announcement.
• Shares of PLTR have declined by more than 20% since the start of the year leading up to this report.

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(SeaPRwire) –   Palantir is set to disclose its Q1 2026 performance after the closing bell on Monday, May 4. Although the stock has retreated by over 20% since January, analysts maintain that there is still significant growth potential.

Palantir Technologies Inc., PLTR

Wall Street forecasts an EPS of $0.28 for the quarter, which would mark a 115% surge over the same period last year. Revenue is expected to reach an all-time high of $1.54 billion, reflecting a 74% year-over-year increase.

With PLTR finishing Thursday’s session near $138, options trading suggests a potential price movement of roughly 9-10% by the end of the week. This implies a possible upside target of $152 or a downside level near $126.

The year-to-date decline in PLTR has been fueled by broader market anxieties regarding AI software valuations and concerns that the stock became overextended following last year’s substantial rally.

Despite this downturn, the majority of analysts covering the company remain optimistic. Among nine analysts monitored by Visible Alpha, six maintain a buy rating, with an average price target just under $201, suggesting an upside of more than 40% from current levels.

William Power of Baird reaffirmed an Outperform rating and a $200 price target ahead of the earnings release. He anticipates that revenue growth will accelerate for the 11th consecutive quarter, driven by robust performance in both the U.S. Commercial and Government sectors.

Power also noted that the recent price drop could serve as an attractive entry point for investors interested in high-growth stocks.

What Analysts Are Watching

Investors will be closely monitoring growth in commercial customers, the adoption rate of Palantir’s Artificial Intelligence Platform (AIP), and the progress of government contracts.

Management’s forward-looking guidance will also be a key focus, particularly any insights regarding the current U.S. government spending landscape.

Analysts at Wedbush informed clients that they view Palantir as having a “clear path to becoming a major software industry leader in the coming years.” Both Wedbush and Baird expressed expectations that Palantir could exceed revenue projections.

Longer-Term Outlook

Baird’s Power anticipates that growth will persist through 2026 and 2027. He estimates that free cash flow could climb to $7.5 billion by 2027, provided the company maintains its current execution.

The broader Wall Street consensus currently stands at Hold, based on 15 Hold, five Buy, and two Sell ratings. The average price target of $191.74 indicates a potential upside of approximately 37.8%.

Palantir’s AIP platform has been a primary catalyst for its commercial expansion, and the Q1 results will provide the latest indication of whether this momentum has carried into 2026.