Rosenblatt resets Palantir stock price target after earnings

Palantir conscionable posted 1 of the strongest quarters successful its past arsenic a nationalist company. Wall Street's absorption was split. The banal fell. And 1 expert said helium had ne'er seen thing rather similar it astatine this scale.

That expert was Rosenblatt Securities' John McPeake. And helium responded by raising his terms target.

Rosenblatt raises Palantir banal terms target

McPeake raised his terms people connected Palantir to $225 from $200 connected May 5, maintaining a bargain rating, according to TipRanks. The determination followed Palantir's Q1 2026 net report, which McPeake described arsenic a "significant beat" to estimates.

McPeake besides raised his estimates pursuing the results. The revised people of $225 places Rosenblatt among the much bullish voices connected the Street, sitting supra the existent median expert terms people of $200, according to Quiver Quantitative.

What McPeake said astir Palantir's quarter

McPeake did not framework this arsenic a regular net beat. "We deliberation the company's integration, orchestration, and Ontology are the cardinal to unlocking AI worth successful the enterprise," helium said, according to Benzinga.

He went further successful characterizing the maturation profile. McPeake said helium has ne'er seen a institution with Palantir's level of integrated acceleration successful gross and net maturation astatine this standard successful the tech sector, Benzinga confirmed.

Those are important statements from a sell-side analyst. They framework Palantir not arsenic a institution that had a bully quarter, but arsenic 1 doing thing structurally antithetic from its peers successful endeavor software.

Why the ontology statement matters

Rosenblatt's thesis is built astir Palantir's ontology layer, which McPeake views arsenic the company's astir defensible competitory advantage. In applicable terms, the ontology is the information instauration that links structured and unstructured endeavor accusation into a azygous operational model, according to 24/7 Wall St.

The statement is that astir AI companies tin make enthusiasm, but less tin amusement a applicable way to endeavor adoption.

Rosenblatt's presumption is that Palantir's integration and orchestration capabilities are what let customers to determination from isolated AI pilots to AI deployed astatine standard crossed existent concern operations. That stickiness, if it holds, is what justifies some the maturation complaint and the premium valuation.

The net numbers down Rosenblatt's Palantir upgrade

Palantir's Q1 2026 gross came successful astatine $1.633 billion, up 85% twelvemonth implicit year. Adjusted operating income grew 152% successful the quarter. Palantir raised its full-year 2026 gross guidance to a scope of $7.650 cardinal to $7.662 billion, from a anterior scope of $7.182 cardinal to $7.198 billion.

The bottommost of the caller scope sat supra the Street's anterior precocious estimation of $7.240 billion, according to Investing.com.

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

Q2 guidance of $1.797 cardinal to $1.801 cardinal besides came successful good supra the Street estimation of $1.679 billion, according to Benzinga. Management's 2026 operating income guidance implies maturation of astir 97% for the afloat year.

Despite each of that, Palantir shares fell 6.7% to $136.12 connected May 5, Benzinga noted. The determination reflects however precocious expectations had already been acceptable and however delicate a premium-valued banal tin beryllium to immoderate read-through that falls abbreviated of the astir optimistic scenarios.

Key figures from Rosenblatt's Palantir upgrade:

• Rosenblatt terms target: $225, raised from $200, bargain standing maintained, expert John McPeake, May 5, according to TipRanks

• Q1 2026 revenue: $1.633 billion, up 85% twelvemonth implicit year; adjusted operating income up 152%, according to Investing.com

• FY2026 gross guidance: Raised to $7.650B-$7.662B from $7.182B-$7.198B, supra Street precocious of $7.240B, Investing.com confirmed

• Q2 2026 gross guidance: $1.797B-$1.801B versus Street estimation of $1.679B, according to Benzinga

• Street median terms people connected Palantir: $200, versus Rosenblatt's $225 and Wedbush's $230, according to Quiver Quantitative

• DA Davidson terms target: Lowered to $165 from $180, neutral standing maintained, Benzinga noted

• Palantir banal connected May 5: Fell 6.7% to $136.12 contempt the net beat, according to Benzinga

Where the Street stands connected Palantir, and what divides it

Rosenblatt's $225 people is 1 of the much assertive calls connected the Street, but not the astir aggressive. Wedbush acceptable a people of $230 connected May 5 arsenic well. On the different side, RBC Capital maintained a people of $90 and DA Davidson really lowered its people from $180 to $165, keeping a neutral rating, according to Quiver Quantitative.

That dispersed tells you thing important astir the Palantir debate. The bull lawsuit rests connected the ontology thesis, sustained authorities and commercialized momentum, and the statement that the Rule of 40 people of 145% represents a durable structural advantage.

The carnivore lawsuit centers connected a valuation that demands continued flawless execution and the hazard that AI spending cycles are much cyclical than they presently appear.

For investors watching from the sidelines, Rosenblatt's connection is that the Q1 people was not a one-off, that the maturation is accelerating alternatively than peaking, and that the ontology furniture gives Palantir thing competitors are not adjacent to replicating.

Whether $225 is the close fig depends astir wholly connected whether that past constituent holds up implicit the adjacent respective quarters.

Related: Palantir resets yearly forecast connected beardown U.S. authorities demand

This communicative was primitively published by TheStreet connected May 7, 2026, wherever it archetypal appeared successful the Investing section. Add TheStreet arsenic a Preferred Source by clicking here.