Palantir Falls 30% in 2026 as 85% Revenue Growth Fuels Buy-the-Dip Case
Updated
Updated · The Motley Fool · Jun 24
Palantir Falls 30% in 2026 as 85% Revenue Growth Fuels Buy-the-Dip Case
3 articles · Updated · The Motley Fool · Jun 24
Summary
Palantir shares are down 30% in 2026 even as the company posted 85% first-quarter revenue growth to $1.63 billion and a 154% rise in non-GAAP EPS to $0.33.
Valuation remains the main drag: Palantir trades at 134 times trailing earnings and 81 times forward earnings, far above the Nasdaq Composite's average P/E of 41.
Growth momentum still looks strong because Palantir signed $2.4 billion in new Q1 contracts, lifting remaining deal value nearly 100% year over year to $11.8 billion.
That backlog supports the view that demand for its AI software remains robust and could convert into faster revenue growth over time.
With 2026 revenue guidance of $7.66 billion and the AI software market projected to expand from $31 billion to $237 billion by 2034, the pullback is being framed as a long-term entry point.