Palantir Q1 Revenue Tops Estimates at $1.63B; U.S. Sales Double

Palantir reported first-quarter revenue of $1.633 billion and adjusted earnings per share of $0.33, exceeding analyst expectations. The company said total revenue rose 85% year over year and 16% from the prior quarter, and it raised its full-year revenue outlook.

Analysts tracked by LSEG had forecast $1.54 billion in revenue and $0.28 in adjusted EPS. Palantir reported GAAP diluted EPS of $0.34 and adjusted diluted EPS of $0.33 for the quarter.

Chief executive and co-founder Alex Karp highlighted the quarter’s growth and performance metrics. Karp called the company’s Rule of 40 score ‘145%’ and added it ‘shattered the metric.’ He noted the quarter produced Palantir’s highest annual growth rate to date and that the U.S. business more than doubled.

Most revenue gains came from the United States. U.S. revenue totaled $1.282 billion, up 104% year over year and 19% sequentially. The U.S. commercial segment generated $595 million, a 133% increase from a year earlier and an 18% rise from the prior quarter. U.S. government revenue was $687 million, up 84% from last year and 21% from the fourth quarter.

Palantir closed 206 contracts worth at least $1 million each during the quarter. Within that group, 72 deals were $5 million or more and 47 exceeded $10 million. Total contract value for the quarter was $2.41 billion, up 61% year over year. U.S. commercial total contract value reached $1.176 billion, up 45% year over year, and U.S. commercial remaining deal value climbed to $4.92 billion, up 112% from the prior year and 12% from the previous quarter.

The company reported strong operating results and cash flow. GAAP income from operations was $754.0 million, a 46% operating margin. Adjusted income from operations was $983.5 million, a 60% margin. GAAP net income attributable to common stockholders was $870.5 million, and adjusted net income was $856.5 million. Cash from operations totaled $899.2 million, adjusted free cash flow was $924.6 million, and adjusted EBITDA was $990.3 million. Palantir ended the quarter with $8.0 billion in cash, cash equivalents and short-term U.S. Treasury securities.

For the second quarter, Palantir expects revenue between $1.797 billion and $1.801 billion and adjusted income from operations between $1.063 billion and $1.067 billion. The company raised its full-year 2026 revenue forecast to $7.650 billion to $7.662 billion and projected U.S. commercial revenue of more than $3.224 billion, implying at least 120% growth. Management also raised its adjusted income from operations outlook to $4.44 billion to $4.452 billion and its adjusted free cash flow forecast to $4.2 billion to $4.4 billion. The company reaffirmed it expects GAAP operating income and GAAP net income in every quarter this year.

Not all analysts were uniformly positive. HSBC downgraded Palantir to hold from buy and cut its price target to $151 from $205. Stephen Bersey, an HSBC analyst, warned the approach of embedding engineers with customers ‘may face more pressure now’ as other companies pursue similar deployment methods, naming OpenAI and pointing to AI agents, agentic frameworks and model context protocol servers as tools that could lower barriers for competitors.