As has happened multiple times across big tech in 2026, Palantir’s (NASDAQ: PLTR) latest earnings report, despite the strength of the financials, brought a stock market retreat as PLTR shares dropped 3.44% to $141.01 in the extended session.
Reacting to both the filing and the selling pressure, the former hedge fund manager and popular TV equity analyst, Jim Cramer, took to X to voice his disagreement with the correction.
Within the social media post, the ‘Mad Money’ host implied that the widespread coverage highlighting “that commercial was weak,’ constitutes a misplaced focus and that the fact that Palantir’s ‘free cash flow this quarter (being) larger than revenue in the year ago quarter’ is far more reflective of the state of the business.
Jim Cramer simultaneously urged his followers to read the actual Palantir earnings call, opining that one ‘won’t be concerned’ upon doing so.
Palantir unveils a double beat in the Q1 report
Examining the filing for the first quarter (Q1) reveals the source of Cramer’s bullishness. Indeed, Palantir’s results were overall strong with the double beat in terms of revenue and earnings per share (EPS) being particularly decisive.
Specifically, sales came in at $1.63 billion when $1.54 billion was expected, and EPS amounted to $0.33, while $0.28 was the consensus forecast.
Harkening back to Jim Cramer’s remarks, Palantir now expects its free cash flow to be in the range between $4.2 billion and $4.4 billion – up from the $3.925 billion to $4.125 billion disclosed in the previous quarterly report and above the analyst-anticipated $4.05 billion.
Furthermore, revenue in 2025 in total amounted to $4.48 billion.
Wall Street reacts to Palantir’s latest quarterly filing
Looking beyond Jim Cramer’s analysis, the initial Wall Street reaction appears somewhat mixed. On May 5, William Blair’s Louie DiPalma rated PLTR stock as a ‘Buy,’ while Mariana Perez Mora of the Bank of America (NYSE: BAC) provided the same recommendation with a $255 12-month price target: 76% above the press time price of $141.01.
Simultaneously, Jefferies analyst Brent Thill ranked Palantir shares as a ‘Sell,’ forecasting a steep, 52% decline to $70.
Featured image via Shutterstock
