Bank of America sends clear message on Palantir stock after earnings

Bank of America wasted small clip successful making its presumption connected Palantir (PLTR) wide aft different Q1 net stunner.

The slope maintained its bullish stance connected the stock, arguing that Palantir’s AI endeavors are showing up successful its sales, margins, contracts, and guardant guidance.

Palantir has been a battleground banal for years, and bearish cases surrounding the institution person drawn peculiar attraction from investors similar Michael Burry and others seeking clarity connected the monolithic question of AI spending.

Apart from the evident ethical concerns tied to its bundle being utilized successful war, bullish investors presumption Palantir arsenic 1 of the fewer companies turning AI hype into real-world endeavor and authorities applications.

On the flipside, the bears interest the banal has already priced successful respective years of growth.

So far, Bank of America feels the bull lawsuit is simply a batch much compelling.

Consequently, it reiterated its Buy standing and $255 terms people connected the stock, hailing its Q1 results arsenic a “step-function” print.

Additionally, BofA besides bumped its 2026 income estimation to $7.85 cardinal from $7.37 cardinal and lifted its 2026 EPS estimation to $1.47 from $1.30 arsenic the company’s AI tools determination toward real-world AI deployment.

Bank of America stayed bullish aft Palantir delivered monolithic AI-driven maturation and raised guidance expectationsKevin Dietsch/Getty Images

Palantir’s U.S. concern powers a blowout Q1

• Palantir Technologies turned successful different Q1 report, with adjusted net per stock of 33 cents.

• Revenue surged 84.4% year-over-year to $1.63 billion, beating expert forecasts by a comfy margin.

• The company’s U.S. concern remained the biggest driver, with income rising much than 50% to $1.28 billion.

• U.S. commercialized income skyrocketed 133%, portion U.S. authorities gross changeable up 84%.

• Palantir secured 72 deals worthy astir $5 cardinal and 47 worthy astatine slightest $10 million.

• Management bumped its 2026 revenue, adjusted operating income, and escaped currency travel guidance.
  Source: Palantir Investor Relations.

Bank of America sees much country for Palantir to run

Bofa’s superior statement for Palantir’s bull lawsuit is that it isn’t selling AI arsenic a escaped tool.

More Palantir 

• Morgan Stanley resets Palantir banal forecast

• Palantir CEO makes blunt AI assertion and investors should care

• Veteran expert drops bold instrumentality connected Palantir Anthropic situation

Instead it’s selling an AI-powered strategy helping backstage enterprises and the authorities really utilizes wrong analyzable operations.

That’s immense due to the fact that astir businesses are present moving past basal entree to ample connection models and toward structured AI deployments, that entail governance, context, and integration.

Those are precisely the things Palantir specializes successful with AIP, Foundry, Ontology, and Apollo.

Its authorities business, peculiarly Maven, remains the crown jewel, with BofA highlighting 84% maturation that underscored a crisp summation successful Maven Smart System usage, including aboriginal backing tied to Maven and the Joint Fires Network.

On apical of that, the commercialized broadside besides continues to impress, rising 18% connected a sequential basis, supporting the bank’s presumption that that Palantir’s maturation communicative is conscionable getting started.

Palantir net history

Palantir has been a accordant outperformer, posting beardown top-and-bottom-line beats, backed by superb year-over-year income maturation accelerating crossed the past 4 quarters.

• FQ1 2026: EPS of $0.33 bushed by $0.05, portion gross of $1.63 cardinal bushed by $90.91 million, with YoY maturation of 84.71%.

• FQ4 2025: EPS of $0.25 bushed by $0.02, portion gross of $1.41 cardinal bushed by $65.44 million, with YoY maturation of 70.00%.

• FQ3 2025: EPS of $0.21 bushed by $0.04, portion gross of $1.18 cardinal bushed by $89.45 million, with YoY maturation of 62.79%.

• FQ2 2025: EPS of $0.16 bushed by $0.02, portion gross of $1.00 cardinal bushed by $64.23 million, with YoY maturation of 48.01%.
  Source: Seeking Alpha.

Wall Street terms targets for Palantir banal station earnings

• Wedbush reiterated an Outperform standing with a $230 terms target.

• Rosenblatt raised its terms people to $225 from $200.

• DA Davidson lowered its terms people to $165 from $180.

• RBC reiterated an Underperform standing with a $90 terms target.

• Oppenheimer has an Outperform standing with a $200 terms target.

Risks to Palantir's bull thesis

Bank of America feels there’s plentifulness to similar astir Palantir stock, but it inactive needs to wide a remarkably precocious bar.

The archetypal and astir evident hazard remains marketplace growth.

Palantir needs consistently precocious request for AI platforms to proceed to support the shot rolling and grow swiftly crossed businesses and authorities agencies.

Any delayed projects oregon a pullback successful spending could effect successful a sizeable re-rating of its top-line expectations.

The 2nd large hazard to see is pricing power.

BofA analysts warned that faster-than-expected commoditization volition wounded its thesis.

That fundamentally points to AI tools becoming a batch easier to copy, cheaper to buy, and harder to merchantability astatine the prices Palantir charges its customers.

Then there’s the hazard from the increasing contention successful the AI space.

OpenAI, Anthropic, Meta, unreality companies, and endeavor bundle vendors proceed to propulsion deeper into AI, and if its rivals constrictive the gap, the banal volition suffer a ton of its premium.

Speaking of premium, the banal is trading astatine implicit 101 times guardant non-GAAP earnings, 321% supra the assemblage median, according to Seeking Alpha.

Even much startling is that it’s trading astatine astir 48 times guardant sales, which is 1,367% supra the assemblage median.

On apical of that, nationalist assemblage hazard is different large concern.

Government buyers person the inclination to beryllium sluggish, political, and cautious. Specifically, BofA flagged stronger-than-expected pushback from nationalist assemblage customers to commercialized off-the-shelf bundle arsenic a large risk.

Palantir banal returns vs the S&P 500

• Over the past week, Palantir banal fell 5.02%, portion the S&P 500 roseate 1.19%.

• Over the past month, it fell 8.45%, portion the S&P 500 roseate 10.28%.

• Over the past six months, it fell 28.75%, portion the S&P 500 roseate 7.20%.

• Year to date, it fell 23.54%, portion the S&P 500 roseate 6.04%.

• Over the past year, it roseate 9.36%, portion the S&P 500 roseate 27.65%.

• Over the past 3 years, it roseate 1,741.60%, portion the S&P 500 roseate 78.75%.
  Source: Seeking Alpha.

Related: Cathie Wood sells $11.8 cardinal successful Nvidia-backed banal earlier earnings

This communicative was primitively published by TheStreet connected May 6, 2026, wherever it archetypal appeared successful the Investing section. Add TheStreet arsenic a Preferred Source by clicking here.