Will AI create the world’s first trillionaire? Our team just released a report on a little-known company, called an “Indispensable Monopoly,” providing the critical technology Nvidia and Intel both need. <\/p>\n
Continue \u00bb<\/a> <\/p>\n Palantir boasted an 85% revenue growth rate in Q1, the company’s highest-ever, U.S. growth was even faster — 104%. Net income more than quadrupled. Palantir’s profit margin hit 60%, resulting in a “Rule of 40” figure similar only to other popular AI stocks such as Micron (NASDAQ: MU) and Nvidia (NASDAQ: NVDA).<\/p>\n Palantir considers this a prime financial objective, balancing sales growth and sales profitability, such that the sales growth rate percentage plus the margin on “adjusted income from operations” add up to 40% or better.<\/p>\n At Palantir, it’s 145%.<\/p>\n What’s next for Palantir stock? <\/p>\n So that’s the good news. Palantir is growing sales faster than ever, and earnings even faster than sales. What’s wrong with that?<\/p>\n Well, a couple things, potentially. New contracts scored in the quarter increased by only 61% year over year. That’s slower than Q1 sales growth, and may foreshadow slower growth ahead. True, management raised its sales guidance for the rest of this year, forecasting 71% sales growth.<\/p>\n But again, that’s smaller than the 85% rate seen in Q1 — a slowdown.<\/p>\n The way I see it, therefore, the story is this: Palantir’s still growing like a weed, and becoming more profitable by the day. But at 164 times earnings, its valuation demands that it keep on doing this. A forecast sales slowdown is the opposite of what growth investors were looking for.<\/p>\n That’s why they’re selling Palantir stock today.<\/p>\n Should you buy stock in Palantir Technologies right now? <\/p>\n Before you buy stock in Palantir Technologies, consider this:<\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and Palantir Technologies wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $490,864!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,216,789!*<\/p>\n Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 963% \u2014 a market-crushing outperformance compared to 201% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of May 5, 2026. <\/p>\n Rich Smith<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy<\/a>.<\/p>\n![\"Palantir](\"https:\/\/www.europesays.com\/news\/wp-content\/uploads\/2026\/05\/64d713b6af8b4740c8c79a6a3e78cb9f.jpeg\")
Image source: Getty Images. Palantir Q1 earnings <\/p>\n