Palantir Technologies reports 85% revenue growth in Q1 2026, but its stock falls amid broader SaaS sector weakness and valuation concerns.
Palantir Technologies (NASDAQ: PLTR) has declined over 25% in 2026 as of May 13, contrasting with triple-digit gains in the prior three years. The drop reflects a broader sell-off in software-as-a-service stocks and valuation pressures, not operational performance.
The company’s Q1 2026 results showed revenue growth accelerating for the 11th consecutive quarter, surging 85%. U.S. commercial revenue rose 133%, while government revenue grew 84%. Customer retention also strengthened, with net dollar retention at 150%.
Despite strong fundamentals, PLTR’s stock remains under pressure as investors reassess high-growth tech valuations amid shifting market conditions.