Palantir Technologies Inc (NYSE:PLTR) is set to report its first-quarter 2026 results after the closing bell on May 4, with Wedbush analysts expecting another strong quarter driven by continued demand for its artificial intelligence platform.
The firm maintained its ‘Outperform’ rating and $230 price target on the stock, which is currently trading at about $138.
The analysts expect “another robust quarter” as adoption of Palantir’s Artificial Intelligence Platform (AIP) expands across both government and commercial customers.
Wedbush wrote that accelerating use cases for AIP are helping drive demand, with the company “at the forefront of the AI Revolution.” The analysts added that Palantir could ultimately reach a trillion-dollar market capitalization over the next few years as AI adoption increases.
For the quarter, Wedbush believes Wall Street’s revenue estimate of $1.54 billion is beatable, pointing to continued strength in the US commercial segment. The firm expects commercial revenue growth to accelerate beyond the 139% year-over-year increase reported in the previous quarter, as enterprises expand deployments and new customers are added.
According to the note, demand for AIP remains strong across both commercial and government markets, supported by what Wedbush described as “unprecedented demand” identified through its industry checks. The firm highlighted growing awareness of Palantir’s offerings, with prospective customers increasingly learning about its technology through existing users and demonstrations of its capabilities.
On profitability, Wedbush said consensus expectations for first-quarter income of roughly $870 million to $874 million appear achievable despite continued investment in product development, hiring, and AI initiatives. The firm also pointed to Palantir’s “Rule of 40” profile, which it expects to continue improving from the 127% level reported in the prior quarter.
In the government segment, Wedbush noted ongoing momentum, citing multiple large contracts across federal agencies. Recent developments include a $300 million agreement with the US Department of Agriculture focused on managing farmland assets and supply chain risks using Palantir’s software.
The firm also highlighted a potential opportunity with the Federal Aviation Administration, where Palantir is pursuing a contract to integrate AI into air traffic control systems as part of a broader modernization effort. Wedbush noted that the FAA has received $12.5 billion in funding for upgrades, with additional investment expected, creating a sizable potential pipeline.
“We continue to believe Palantir has the potential to be a trillion-dollar market cap company in the next few years as the AI Revolution takes hold and the company sees accelerating demand for its AI products and services,” Wedbush added.
“With the company continuing to strategically innovate its product suite while investing in top talent and maintaining a global presence, we believe that PLTR has a golden path to become the next stalwart software company over the coming years and will grow into its valuation.”