Palantir Technologies Inc. (NASDAQ:PLTR) is scheduled to report its first-quarter results on May 5, and anticipation is building across Wall Street. The upcoming Palantir Q1 earnings report is drawing interest from both long-time investors and speculative traders, especially after shares surged more than 13% in the past week alone.
This surge comes on the heels of Palantir’s impressive fourth-quarter performance back in February, when the AI-driven software company posted results that sent the stock soaring over 20%. With this kind of track record, the May 5 report is likely to be another key moment for the stock.
Analysts Expect Strong Growth—But Will It Be Enough?
The current consensus among analysts is that Palantir Q1 earnings will come in at $0.08 per share, doubling last year’s results for the same period. This kind of year-over-year growth is encouraging and could boost confidence in Palantir’s long-term prospects.
But growth doesn’t guarantee a stock rally. As investors learned from past earnings cycles, even a beat on expectations can be overshadowed by poor guidance or macroeconomic concerns. With fears of a slowdown in the U.S. economy due to new trade policies under President Donald Trump, even strong quarterly results may not be enough to sustain upward momentum.
Valuation Remains a Major Concern
Despite the recent run-up, some experts remain skeptical. Gregg Moskowitz, an analyst at Mizuho, argues that Palantir Q1 earnings may not be enough to justify the stock’s current valuation. With shares trading at over 180 times projected 2025 adjusted earnings, the premium on Palantir is steep—especially when compared to other tech giants.
For example, Nvidia Corporation (NASDAQ:NVDA), a widely respected leader in AI and semiconductor tech, trades at only 25 times forward earnings. When such a powerful peer is so much cheaper, it raises red flags about Palantir’s price tag.
Moskowitz’s target price of $89 suggests a potential downside of over 10% from current levels, indicating that much of the bullish news may already be priced into Palantir stock.
Wall Street Remains Cautious on Palantir
The broader sentiment on Palantir Q1 earnings is measured. According to data from Barchart, the consensus rating on Palantir shares is currently “Hold.” Analysts peg the average price target at $84, implying potential downside of more than 15% from current levels.
This lukewarm stance reflects concerns not just about valuation but also about how sustainable Palantir’s growth is in a more uncertain economic environment. With budgets tightening across industries, high-cost software—no matter how effective—may see reduced demand.
Investor Takeaway Ahead of Q1 Results
With Palantir Q1 earnings on the horizon, May 5 could be a pivotal day. While there’s reason for optimism, including strong expected earnings growth and momentum from the last quarter, risks are high. Valuation concerns, economic headwinds, and cautious analyst sentiment make it a tricky time to jump in.
Investors looking to buy ahead of earnings should tread carefully. Those already holding the stock may want to consider hedging or taking profits in case the report fails to meet heightened expectations.
No matter your stance, one thing is clear: May 5 will be a big day for Palantir and its shareholders.
Featured Image: Megapixl
