Palantir Revenue Soars While BigBear.ai Struggles
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy PLTR?
Source: Fool
- Palantir Revenue Surge: Palantir reported $1.6 billion in revenue for Q1 2026, marking an impressive 85% year-over-year increase, which highlights its success in attracting commercial clients through AI products and supports ongoing quarter-over-quarter growth.
- Defense Agreement Secured: The company secured a significant defense agreement, which not only strengthens its position in the government sector but also lays the groundwork for future revenue growth, with Q2 projections reaching around $1.8 billion.
- BigBear.ai Revenue Fluctuations: In contrast, BigBear.ai's revenue for Q1 2026 was $34.4 million, reflecting a 1% year-over-year decline, indicating its struggle to capture customer spending in the rapidly growing AI market, thus reducing its investment appeal.
- Executive Team Expansion: BigBear.ai announced an expansion of its executive leadership team; however, its -165% net income margin suggests significant challenges in market competition, potentially impacting its future business trajectory.
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Analyst Views on PLTR
Wall Street analysts forecast PLTR stock price to rise
17 Analyst Rating
5 Buy
10 Hold
2 Sell
Hold
Current: 133.730
Low
50.00
Averages
192.88
High
255.00
Current: 133.730
Low
50.00
Averages
192.88
High
255.00
About PLTR
Palantir Technologies Inc. is engaged in building software to assist in counterterrorism investigations and operations. The Company has built four principal software platforms, including Palantir Gotham (Gotham), Palantir Foundry (Foundry), Palantir Apollo (Apollo), and Palantir Artificial Intelligence Platform (AIP). Apollo is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems. Gotham enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants. Foundry transforms the ways organizations operate by creating a central operating system for their data. AIP enables responsible artificial intelligence (AI)-advantage across the enterprise by using primary, core components built to effectively activate large language models and other AI within any organization.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Palantir Technologies: A Decade of Growth Potential
- Government Revenue Surge: In Q1 2026, Palantir's U.S. government revenue reached $687 million, an 84% year-over-year increase, with management raising full-year revenue guidance to a 71% growth rate, indicating strong demand for government contracts and sustained market penetration.
- Product Innovation: Palantir's three key products—Gotham, Foundry, and the Artificial Intelligence Platform (AIP)—drove 206 deals worth over $1 million, resulting in adjusted operating income of $984 million at a 60% margin, showcasing robust performance in the commercial market and future growth potential.
- Optimistic Decade Outlook: Palantir's bullish outlook is anchored on three pillars: the ontology layer becoming a standard for enterprise AI operations, continued growth in government contracts, and rapid expansion of its commercial business, which, if it maintains current growth rates, could eventually surpass government operations and establish a strong market position.
- Market Competition Risks: Despite the optimistic outlook, Palantir faces challenges such as risks in government contract renewals, slow international market growth, and high valuation, necessitating investors to carefully assess potential market volatility and competitive pressures when formulating investment strategies.
See More
Amazon's AI Business Thrives Amidst Growth
- Stock Surge: Amazon's shares have climbed over 30% since the end of March, reflecting strong market confidence in its AI business, which is expected to drive sustained growth in the coming years.
- Capital Expenditure Plans: Amazon announced a $200 billion investment in AWS infrastructure by 2026 to meet surging AI demand, with this investment projected to translate into revenue between 2027 and 2028, indicating the company's commitment to future market opportunities.
- Chip Business Potential: Amazon's in-house chips like Graviton and Trainium are driving revenue growth in its AI business, with a current annual revenue run rate exceeding $15 billion, showcasing its competitiveness in the chip market and potential for future expansion.
- Attractive Valuation: With a forward P/E ratio of 30, Amazon is reasonably priced given its strong growth trajectory and future potential, which may attract investors and further boost its stock price.
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SpaceX Approaches $2 Trillion IPO Valuation
- Valuation Surge: SpaceX's valuation reached $800 billion in 2025, soared to $1.25 trillion after merging with xAI in 2026, and recently hit $1.5 trillion on Forge Global, with IPO expectations between $1.75 trillion and $2 trillion, indicating strong growth potential in the aerospace market.
- Revenue Expectations: Analysts estimate SpaceX's revenue last year ranged from $15 billion to $18 billion, and while specific figures remain undisclosed, the IPO valuation implies a price-to-sales ratio exceeding 100, reflecting high market expectations for future growth.
- Technological Innovation: SpaceX significantly reduces launch costs through reusable rockets and has evolved Starlink into a global broadband network, while also positioning itself as an orbital AI infrastructure provider, with a total addressable market estimated at around $28 trillion, primarily in enterprise AI.
- Market Risks: Although SpaceX's IPO may price shares at a premium, its future valuation faces multiple risks, including the need for Starlink user growth, Starship launch frequency, and the commercialization of its AI business, where any execution delays or shifts in market sentiment could lead to significant valuation volatility.
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Palantir's Ten-Year Outlook: Bull and Bear Cases
- Government Revenue Surge: In Q1 2026, Palantir reported U.S. government revenue of $687 million, an 84% year-over-year increase, with management raising full-year revenue guidance to a 71% growth rate, indicating strong performance in government contracts and potential for sustained revenue growth.
- Commercial Product Growth: Palantir's three key products—Gotham, Foundry, and the Artificial Intelligence Platform (AIP)—are driving revenue growth, particularly as AIP shortens sales cycles and enhances customer training, suggesting that the commercial segment may eventually surpass government business.
- Market Competition Risks: While Palantir excels in government contracts, it faces competitive pressures from larger platforms, particularly in the commercial sector, where slower international growth could limit market share, highlighting potential risks of market concentration.
- Valuation Pressures: Palantir's stock trades at one of the highest revenue multiples in the software sector, and any deceleration in growth could lead to valuation compression, necessitating careful assessment of its long-term investment value.
See More
Palantir Shares Drop 4.2% Following PPI Report Impacting Treasury Yields
- Stock Price Volatility: Palantir Technologies shares fell 4.2% in the afternoon session, primarily due to the April PPI report pushing Treasury yields to 10-month highs, with the 10-year yield reaching 4.49%, effectively eliminating hopes for rate cuts in 2026 and raising the discount rate applied to long-duration growth earnings.
- Software Sector Pressure: BNN Bloomberg highlighted that technology-related inflation is emerging as a structural concern, with software prices rising year-over-year, potentially leading to a pullback in enterprise software spending, which could impact Palantir's long-duration subscription revenue as the present value of future cash flows declines with rising yields.
- Market Reaction Analysis: Despite Palantir's first-quarter revenue growing 84.7% year-over-year to $1.63 billion and strong profitability, the market's reaction was a 'sell-the-news' response, resulting in a 6.6% drop in stock price after the good news, indicating cautious sentiment regarding future expectations.
- Investment Return Situation: Although Palantir's stock has declined 22.8% year-to-date, trading at $129.52 per share, which is 37.5% below its 52-week high of $207.18, investors who bought $1,000 worth of shares five years ago would now see their investment worth $7,051, demonstrating the potential for long-term investment growth.
See More
Palantir and AMD: The AI Stock Surge
- AI Stock Popularity: Palantir and AMD are recognized as two of the most popular AI stocks globally, reflecting strong market interest and investment enthusiasm for artificial intelligence technology, which could drive stock prices higher.
- Market Performance: As of May 14, 2026, Palantir's stock price increased by 0.19%, while AMD's stock rose by 5.67%, indicating investor confidence in both companies and optimistic expectations for the AI sector.
- Investor Attention: With the continuous advancement of AI technology, the stocks of Palantir and AMD have attracted significant investor interest, potentially leading to increased capital inflow and further stock price appreciation, enhancing market competitiveness.
- Future Outlook: Analysts generally have a positive outlook on both companies' prospects in the AI field, expecting continued investor interest that could yield long-term returns for shareholders.
See More
Palantir Technologies: A Decade of Growth Potential
- Government Revenue Surge: In Q1 2026, Palantir's U.S. government revenue reached $687 million, an 84% year-over-year increase, with management raising full-year revenue guidance to a 71% growth rate, indicating strong demand for government contracts and sustained market penetration.
- Product Innovation: Palantir's three key products—Gotham, Foundry, and the Artificial Intelligence Platform (AIP)—drove 206 deals worth over $1 million, resulting in adjusted operating income of $984 million at a 60% margin, showcasing robust performance in the commercial market and future growth potential.
- Optimistic Decade Outlook: Palantir's bullish outlook is anchored on three pillars: the ontology layer becoming a standard for enterprise AI operations, continued growth in government contracts, and rapid expansion of its commercial business, which, if it maintains current growth rates, could eventually surpass government operations and establish a strong market position.
- Market Competition Risks: Despite the optimistic outlook, Palantir faces challenges such as risks in government contract renewals, slow international market growth, and high valuation, necessitating investors to carefully assess potential market volatility and competitive pressures when formulating investment strategies.
See More
Amazon's AI Business Thrives Amidst Growth
- Stock Surge: Amazon's shares have climbed over 30% since the end of March, reflecting strong market confidence in its AI business, which is expected to drive sustained growth in the coming years.
- Capital Expenditure Plans: Amazon announced a $200 billion investment in AWS infrastructure by 2026 to meet surging AI demand, with this investment projected to translate into revenue between 2027 and 2028, indicating the company's commitment to future market opportunities.
- Chip Business Potential: Amazon's in-house chips like Graviton and Trainium are driving revenue growth in its AI business, with a current annual revenue run rate exceeding $15 billion, showcasing its competitiveness in the chip market and potential for future expansion.
- Attractive Valuation: With a forward P/E ratio of 30, Amazon is reasonably priced given its strong growth trajectory and future potential, which may attract investors and further boost its stock price.
See More
SpaceX Approaches $2 Trillion IPO Valuation
- Valuation Surge: SpaceX's valuation reached $800 billion in 2025, soared to $1.25 trillion after merging with xAI in 2026, and recently hit $1.5 trillion on Forge Global, with IPO expectations between $1.75 trillion and $2 trillion, indicating strong growth potential in the aerospace market.
- Revenue Expectations: Analysts estimate SpaceX's revenue last year ranged from $15 billion to $18 billion, and while specific figures remain undisclosed, the IPO valuation implies a price-to-sales ratio exceeding 100, reflecting high market expectations for future growth.
- Technological Innovation: SpaceX significantly reduces launch costs through reusable rockets and has evolved Starlink into a global broadband network, while also positioning itself as an orbital AI infrastructure provider, with a total addressable market estimated at around $28 trillion, primarily in enterprise AI.
- Market Risks: Although SpaceX's IPO may price shares at a premium, its future valuation faces multiple risks, including the need for Starlink user growth, Starship launch frequency, and the commercialization of its AI business, where any execution delays or shifts in market sentiment could lead to significant valuation volatility.
See More
Palantir's Ten-Year Outlook: Bull and Bear Cases
- Government Revenue Surge: In Q1 2026, Palantir reported U.S. government revenue of $687 million, an 84% year-over-year increase, with management raising full-year revenue guidance to a 71% growth rate, indicating strong performance in government contracts and potential for sustained revenue growth.
- Commercial Product Growth: Palantir's three key products—Gotham, Foundry, and the Artificial Intelligence Platform (AIP)—are driving revenue growth, particularly as AIP shortens sales cycles and enhances customer training, suggesting that the commercial segment may eventually surpass government business.
- Market Competition Risks: While Palantir excels in government contracts, it faces competitive pressures from larger platforms, particularly in the commercial sector, where slower international growth could limit market share, highlighting potential risks of market concentration.
- Valuation Pressures: Palantir's stock trades at one of the highest revenue multiples in the software sector, and any deceleration in growth could lead to valuation compression, necessitating careful assessment of its long-term investment value.
See More
Palantir Shares Drop 4.2% Following PPI Report Impacting Treasury Yields
- Stock Price Volatility: Palantir Technologies shares fell 4.2% in the afternoon session, primarily due to the April PPI report pushing Treasury yields to 10-month highs, with the 10-year yield reaching 4.49%, effectively eliminating hopes for rate cuts in 2026 and raising the discount rate applied to long-duration growth earnings.
- Software Sector Pressure: BNN Bloomberg highlighted that technology-related inflation is emerging as a structural concern, with software prices rising year-over-year, potentially leading to a pullback in enterprise software spending, which could impact Palantir's long-duration subscription revenue as the present value of future cash flows declines with rising yields.
- Market Reaction Analysis: Despite Palantir's first-quarter revenue growing 84.7% year-over-year to $1.63 billion and strong profitability, the market's reaction was a 'sell-the-news' response, resulting in a 6.6% drop in stock price after the good news, indicating cautious sentiment regarding future expectations.
- Investment Return Situation: Although Palantir's stock has declined 22.8% year-to-date, trading at $129.52 per share, which is 37.5% below its 52-week high of $207.18, investors who bought $1,000 worth of shares five years ago would now see their investment worth $7,051, demonstrating the potential for long-term investment growth.
See More
Palantir and AMD: The AI Stock Surge
- AI Stock Popularity: Palantir and AMD are recognized as two of the most popular AI stocks globally, reflecting strong market interest and investment enthusiasm for artificial intelligence technology, which could drive stock prices higher.
- Market Performance: As of May 14, 2026, Palantir's stock price increased by 0.19%, while AMD's stock rose by 5.67%, indicating investor confidence in both companies and optimistic expectations for the AI sector.
- Investor Attention: With the continuous advancement of AI technology, the stocks of Palantir and AMD have attracted significant investor interest, potentially leading to increased capital inflow and further stock price appreciation, enhancing market competitiveness.
- Future Outlook: Analysts generally have a positive outlook on both companies' prospects in the AI field, expecting continued investor interest that could yield long-term returns for shareholders.
See More
