Palantir Technologies PLTR delivered better-than-expected first-quarter results, thanks to robust demand from both commercial clients and U.S. government agencies. Shares lost about 1.8% after hours on May 4, 2026.
Revenue surged 85% year over year to $1.63 billion, surpassing the Zacks Consensus Estimate of $1.54 billion, as quoted on Yahoo Finance. Of this, $1.28 billion came from the United States. Adjusted earnings per share climbed more than 150% to $0.33, comfortably beating the Zacks Consensus Estimate of $0.29.
U.S. Business Drives Growth
Palantir’s U.S. operations were the standout performer, with the business more than doubling over the past twelve months. The company continues to benefit from deep ties with government agencies, including the Pentagon, Department of Homeland Security, and the U.S. Department of Agriculture.
Its AI-powered Maven platform has seen expanded adoption, particularly within defense applications, as quoted on Yahoo Finance. Commercial traction remains strong, with Palantir securing major clients such as NVIDIA, Airbus, and Stellantis.
Raised Full-Year Outlook
Palantir lifted its full-year revenue guidance to a range of $7.65 billion to $7.66 billion, up from its prior outlook of $7.18 billion to $7.20 billion.
The company also raised its U.S. commercial revenue forecast to $3.22 billion, implying 120% growth, higher than the earlier projection of 115%.
Stock Performance and AI Tailwinds
Palantir shares have lost about 13% so far this year and have rebounded following a broader software-sector pullback tied to concerns over AI disruption. The stock has gained about 2.5% over the past week. The company has been one of the biggest winners of the AI trade, soaring 150% in 2025.
What Lies Ahead for ETFs?
As investors rotate away from richly valued AI stocks amid apprehension over higher rates in the United States, Palantir’s ability to translate AI euphoria into solid profits indicates the strong fundamentals still present in the AI space.
Investors wary about Palantir’s rich valuation can play Palantir-based exchange-traded funds (ETFs) like Roundhill PLTR WeeklyPay ETF PLTW, iShares U.S. Tech Independence Focused ETF IETC, iShares Expanded Tech-Software Sector ETF IGV and Global X Defense Tech ETF SHLD. Note that the basket approach minimizes the company-specific concentration risks.
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Global X Defense Tech ETF (SHLD): ETF Research Reports
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This article originally published on Zacks Investment Research (zacks.com).