Over the past 11 quarters, Palantir has impressed the Street with strong revenue growth while raising guidance. It’s part of the reason PLTR stock has soared more than 1,800% over the last three years.

In its Q1 2026 earnings report, the company’s EPS of 33 cents beat by five cents. Revenue of $1.63 billion, up 84.4% year over year, beat by $90 million. Analysts were looking for adjusted EPS of $0.28 on $1.54 billion in revenue.

U.S. revenue jumped 104% year over year. U.S. commercial revenue was up 133% year over year. U.S. government revenue jumped 84% year over year.

And, as noted by CEO and co-founder Alex Karp:

“Palantir’s Rule of 40 score has soared to 145%. We have shattered the metric, a feat matched only by other fellow AI infrastructure companies: NVIDIA, Micron and SK Hynix. Momentum surged as we grew 85% last quarter—our highest-ever year-over-year growth rate—by more than doubling our U.S. business, and now we are raising our full-year revenue guidance to 71% growth, 10 points ahead of our guidance from last quarter, driven by our confidence in an accelerating U.S. market.” 

Guidance Suggests Palantir’s Growth Story Isn’t Slowing Yet

A key concern about Palantir is that its growth will start to slow. However, if that’s going to happen, the company’s impressive guidance is saying “not this year.”

Palantir said it expects revenue to be between $1.797 billion and $1.801 billion, above the $1.68 billion estimate. For the full year, Palantir said it expects revenue to be between $7.65 billion and $7.662B, above the consensus estimate of $7.24 billion. The company also raised its U.S. commercial revenue guidance, now expecting sales in the segment to exceed $3.224B, up at least 120% year-over-year.

Why PLTR Stock Dropped Despite Strong Results

However, those results weren’t good enough for some analysts. Shares of Palantir slipped about $10 a share the day after it released earnings. One reason is slightly slower growth.

For example, new contracts picked up in the quarter, and were up 61% year over year. But the growth was slower quarter over quarter, and could be a sign of slower growth moving forward. 

Analysts at Jefferies were quick to point out weak spots.  According to the firm, there was a slight miss in the U.S. commercial segment. It was also the first deterioration the firm had seen from Palantir in the last two years, adding that U.S. commercial sales missed expectations of $605 million.

Also, as noted by Morgan Stanley (NYSE: MS), “the reaction suggests that ‘shares need to grow into [their] current valuation to get rewarded,’” as noted by MarketWatch.com. “Shares recently traded at about 34 times estimated sales for 2027 and about 56 times estimates for free cash flow in that period, ‘with peak growth likely approaching or having already materialized.’”

DA Davidson analysts lowered their price target on PLTR to $165 from $180, noting that the stock trades at a significant premium to peers.

But not all analysts are turning bearish on PLTR. Wedbush’s Dan Ives said this was another “validation moment” for PLTR. Ives has an outperform rating on the stock with a $230 price target. He says demand for Palantir’s AI products is still very strong, especially from commercial customers.

Loop Capital is just as bullish. The firm has a buy rating on the stock with a $220 price target, noting that while valuation is a concern, it’s tough to ignore the company’s strong momentum.

Palantir Stock Pullback May Be a Long-Term Buying Opportunity

In short, the company is clearly firing on multiple cylinders, with accelerating demand for its AI-driven platforms and strong momentum in its core U.S. business.

At the same time, valuation concerns and even minor signs of slowing growth can be enough to shake investor confidence in the short term. That push-and-pull is likely to remain a defining feature of the stock.

For long-term investors, though, the bigger picture hasn’t changed much. If Palantir can continue to execute and capitalize on the expanding AI market, periods of volatility like this may end up looking more like noise than a warning sign.

Concerning robotaxis, Morgan Stanley (NYSE: MS) calls them the company’s most important catalyst, adding that, “Superior robotaxi unit economics are supported by vertical integration and innovative Cybercab production – Tesla is changing the way cars are made.” The firm added that each mile driven by the robotaxi fleet will also help improve the AI model for FSD [Full-Self Driving].

The firm has an equal weight on Tesla, with a target of $415. 

With regard to numbers, analysts aren’t expecting anything great from EV sales. We already know that Tesla delivered 358,023 vehicles in the first quarter, missing estimates of 365,645. And we’re already aware of the gap between production and deliveries. the EV maker produced over 590,000 vehicles but sold only 500,000, creating an inventory buildup that indicates a demand issue.

Robotaxis Could Create a $2 Trillion Market Opportunity

The broader robotaxi market is expected to expand rapidly over the next decade. According to Fortune Business Insights, the global market could grow from about $10.1 billion in 2025 to $18.3 billion this year, eventually reaching to $2 trillion by 2034. 

In addition, New Street Research analysts believe the company is particularly well-positioned to capitalize on this trend. The firm has assigned a “buy” rating and a $600 price target, citing three primary competitive advantages. First, Tesla’s manufacturing scale and design strategy could enable lower unit costs than rivals. Second, its flexible supply model allows the company to adjust production more efficiently. Third, the company already has millions of vehicles on the road.

Wedbush Managing Director Foresees a Big Year for TSLA

With an outperform rating and a $500 price target for TSLA, Wedbush managing director Dan Ives said on X, “We believe Tesla and Musk are heading into a very important chapter of their growth story as the AI Revolution takes hold and the Robotaxi opportunity is now a reality on the doorstep. Investors are starting to see through the near-term demand issues for Tesla and recognize that Tesla is in a pole position to be a clear leader in the autonomous market opportunity with Robotaxis set to scale to 30 to 35 cities in the US over the next year.”

He added, “We expect over the coming months an easing of the federal framework for autonomous with more power going to the federal regulators with states having less authority on the autonomous rules framework. We believe Tesla could reach a $2 trillion market cap by the middle of 2026 in a bull case scenario. The $1 trillion of AI valuation will start to get unlocked in the Tesla story, and we believe the march to a $2 trillion valuation for TSLA over the next 12 to 18 months has now begun in our view with FSD and autonomous penetration of Tesla’s installed base and the acceleration of Cybercab…”

Tesla’s Energy Business Is an Overlooked Growth Driver

Tesla’s energy storage business could also play a meaningful supporting role in the company’s long-term narrative. Megapack deployments continue to grow, and as utilities modernize grids to handle increased electrification and AI-driven demand, Tesla’s energy segment may deliver steadier, high-margin revenue compared to its cyclical auto business.

For investors, that makes this earnings report less about whether the company beat or missed on deliveries and more about forward guidance. Updates on Full Self-Driving adoption, robotaxi timelines, and energy growth could ultimately matter more than headline numbers. If management reinforces confidence in those areas, it may help offset ongoing concerns about softening EV demand.

What Will Matter Most After Tesla Reports Earnings

The biggest thing investors should watch for TSLA in 2026 is whether it can successfully launch its robotaxi service. If the company delivers on this goal, it could open the door to a massive new market and significantly boost its long-term growth. While analysts remain divided on TSLA, many agree that autonomous driving and robotaxis could be a game-changer. 

Apple Draws Analyst Upgrades Ahead of Earnings

Expecting a solid report, JPMorgan Chase & Co. (NYSE: JPM) reiterated its overweight rating on Apple and raised its price target to $315 from $305 ahead of Apple’s first-quarter earnings.

Evercore ISI added Apple to its Tactical Outperform list, arguing that strong iPhone demand positions the company for strong earnings. The firm reiterated an Outperform rating and a $330 price target on Apple stock. Evercore expects iPhone revenue to climb 17% year over year, which would be well above calls for 11% growth.

And, according to CEO Tim Cook, “First-quarter revenue is expected to demonstrate year-over-year growth ranging from 10% to 12%, which translates to $136.7 billion to $139.2 billion. This would easily eclipse Apple’s previous record-high quarterly revenue of $124.3 billion, set in the first quarter of fiscal 2025. What’s more, it would stand as Apple’s most significant year-over-year revenue jump since the first quarter of fiscal 2022, when it posted an 11.2% increase,” as quoted by Seeking Alpha.

However, Apple isn’t the only stock that analysts are gushing over.

Meta Surges as Analyst Upgrades Follow Blowout Results

Meta Platforms Inc. (NASDAQ: META) exploded after the company posted EPS of $8.88 on revenue of $59.89 billion. Those came in above estimates for $8.23 and $58.59 billion. Meta also issued strong guidance, expecting first-quarter sales of $53.5 billion to $56.5 billion, which is above estimates of $51.41 billion.

Analysts loved the news, with Barclays raising its price target to $800 from $770, with an overweight rating.

“After a jittery response to 3Q, META got back to business in 4Q. More impressive than the massive capex/opex growth is the ad rev trajectory, eclipsing 30% in 1Q, papering over many investor concerns. META continues to set the pace for the digital ad industry, with AI option value still ahead,” added the firm, as quoted by CNBC.

Morgan Stanley (NYSE: MS) has an overweight rating with an $825 price target. JPMorgan has an overweight rating with an $825 price target. Goldman Sachs (NYSE: GS) has a buy rating with an $835 price target. Wells Fargo (NYSE: WFC) has an overweight rating with an $849 price target. Citigroup (NYSE: C) has a buy rating with an $850 price target. UBS Group (NYSE: UBS) also has a buy rating with an $872 price target.

Bank of America Reiterates Buy on IBM

Analysts at Bank of America (NYSE: BAC) just reiterated a buy rating on IBM (NYSE: IBM), with a price target of $340. The firm noted that IBM posted an overall beat on topline numbers thanks to upside in Infrastructure, improving Transaction processing and solid growth in Data.

Not only did it just declare a $1.68 per share dividend (payable on March 10 for shareholders of record as of February 10), it also posted EPS of $4.52 billion, which was above expectations by 23 cents. Revenue of $19.69 billion, up 12.2%, beat by $480 million.

“In the fourth quarter, we delivered strong revenue growth, with double-digit Software performance. Additionally, Infrastructure continued its double-digit revenue growth with the robust adoption of the next generation of our mainframe platform. Our generative AI book of business now stands at more than $12.5 billion. This capped a strong 2025 for IBM where we exceeded expectations for revenue, profit and free cash flow,” said Arvind Krishna, IBM chairman, president and chief executive officer. 

“We enter 2026 with momentum and in a position of strength, giving us confidence in our full-year expectations of more than 5 percent constant currency revenue growth and an increase of about $1 billion in year-over-year free cash flow.”

Microsoft Slides on Guidance, But Analyst Support Holds

Microsoft Corp. (NASDAQ: MSFT) reported that cloud growth slowed in the second quarter. It also issued soft guidance on operating margins. 

The good news is that MSFT’s EPS of $4.14 was better than the estimates of $3.97. Revenue of $81.27 billion was also higher than the estimates for $80.27 billion. With guidance, the company called for revenue of between $80.65 billion and $81.75 billion, with its mid-range of $81.2 billion meeting estimates of $81.19 billion.

With the stock dropping, Deutsche Bank (NYSE: DB) reiterated a buy rating on MSFT with a $575 price target. The firm noted that MSFT “reported another solid result for F2Q, but it ultimately fell short of more lofty market expectations, in particular for Azure growth,” as quoted by CNBC.

Analyst Upgrades Signal Continued Confidence in Big Tech

The latest round of analyst upgrades after earnings suggests Wall Street remains confident in the long-term outlook for Big Tech. While short-term volatility may follow guidance updates or elevated expectations, consistent earnings strength and AI-driven growth continue to support bullish sentiment across the sector.