Dell’s stronger-than-expected Q1 results validate its AI partnership with Palantir, lifting PLTR shares to $158.
Palantir shares climbed 10% to $158 in early trading Friday after Dell Technologies reported Q1 FY2027 revenue of $43.84 billion, a 23% beat on estimates and 88% year-over-year growth. Non-GAAP earnings per share reached $4.86, surpassing the $2.96 consensus by 64%, driven by surging AI-optimized server sales.
The results confirmed the strategic AI factory partnership Dell and Palantir announced earlier this month. While Palantir’s stock remains down 12% year-to-date, the rally marks a recovery from recent losses. Separately, Snowflake’s Q1 revenue of $1.39 billion, up 34% YoY, added momentum to the broader software sector.
The market reaction highlights investor confidence in AI infrastructure collaborations, with Palantir benefiting from Dell’s earnings validation rather than its own quarterly report.