Shares of Palantir Technologies jumped 7.3% in the afternoon after Snowflake reported first-quarter results and said it saw a "clear inflection point" in enterprise AI demand. The move came on top of Palantir's own blowout May 4 report showing total revenue up 85% to $1.633 billion and a large lift to full-year targets.
Palantir’s May 4 print showed U.S. revenue growing 104% to $1.282 billion, with U.S. commercial revenue up 133% to $595 million for the quarter. The company raised full-year guidance by 10 percentage points to a range of $7.65 billion to $7.66 billion, a figure that implies 71% growth year-over-year and that boosts its U.S. commercial outlook to at least 120% for the full year.
The AI backdrop Snowflake described helped explain the market’s reaction. Snowflake said its AI customer count jumped from 9,100 to 13,600 in a single quarter — a sharp acceleration that traders took as proof enterprises are starting to deploy AI at scale on their own data. Palantir and Snowflake sit on adjacent layers of that enterprise AI stack, and investors interpreted Snowflake’s numbers as supportive of the use cases Palantir has been selling.
Markets rewarded the combination: Palantir was trading at $142.74 per share in the primary article and was up 7.9% as of 3:30 p.m. ET in the supplementary article, even as the S&P 500 and the Nasdaq Composite were broadly higher — up 0.5% and 0.8%, respectively, at the same time. The stock remains deeply volatile, however, with 28 moves greater than 5% over the last year and a decline of about 15% since the beginning of the year; it still sits roughly 31.1% below its 52-week high of $207.18 from November 2025.
Defence-industry developments added to the relief rally. A report in a national paper said the U.S. government could be preparing to provide direct funding to domestic drone companies through investments, naming Unusual Machines, Performance Drone Works and Neros Technologies as possible recipients. Palantir in March announced a substantial new partnership with Ondas, and its software is already used to support drone applications from multiple providers — a fact market participants cited as a potential near-term revenue tailwind.
The tension in the story is sharp and immediate. Palantir’s top-line surge and upgraded guidance arrive alongside stretched valuation multiples: the stock was trading at roughly 98 times expected earnings and 44 times expected sales in the supplementary article. Those multiples help explain why, even after today’s jump, investors have been quick to sell on any sign that growth could slow or that margins won’t keep pace.
In plain terms, Palantir’s results and the evidence of rising enterprise AI demand give the company a credible claim to the market’s enthusiasm. But that enthusiasm will be tested by a simple metric: can Palantir convert accelerating revenue into consistent, measurable profit that justifies being priced near those extreme multiples? If it can, the stock’s swings should settle and gains will stick; if it cannot, volatility is likely to persist regardless of how many AI inflection points the rest of the industry announces.
