Palantir posts 85% revenue growth in Q1 with strong government and commercial gains, holds steady on valuation.

Palantir Technologies reported an impressive 85% year-over-year revenue increase in Q1, driven by 133% growth in its US Commercial segment and 84% in Government. The company secured 47 deals over $10 million and maintained a net dollar retention rate of 150%. Despite the strong performance and optimistic 2026 guidance, the stock's valuation remains high, with a potential 2030 P/E of 25x assuming growth to 2,500 customers and $6.5 million ARPU. The analyst maintains a Hold rating, noting improved confidence but a need for greater margin of safety before recommending a buy.