Palantir Crushes Q1, Raises Fy26 Guidance To 71% Growth

Palantir (@PalantirTech) delivered its strongest quarterly performance since going public in 2020, reporting Q1 revenue of $1.63 billion — up 85% year-over-year — and raising its full-year outlook well above Wall Street expectations.

Adjusted EPS came in at $0.33, beating the $0.28 consensus forecast by nearly 18%. The result marked the company's 11th consecutive quarter of revenue acceleration.

US Business Dominates

US revenue led the growth, rising 104% year-over-year to $1.28 billion. Government contracts with US agencies brought in $687 million, up 84%, while domestic commercial clients added $595 million after a 133% increase. Palantir finished the quarter with 615 US commercial customers, a 42% increase from a year ago.

GAAP net income was $871 million on a 53% margin. The company ended the quarter with $8.0 billion in cash, cash equivalents, and US Treasury securities, and carried no debt.

Guidance Raised Sharply

The company raised its full-year 2026 revenue outlook to $7.65–$7.66 billion, implying 71% annual growth, and lifted adjusted free cash flow guidance to $4.2–$4.4 billion — both above analyst consensus. US commercial revenue guidance was raised to at least $3.224 billion, representing growth of at least 120%. For Q2, management guided to $1.8 billion in revenue, above the $1.68 billion consensus.

CEO Alex Karp was characteristically direct in his shareholder letter. "Our financial results now demonstrate a level of strength that dwarfs the performance of essentially every software company in history at this scale," Karp wrote.

Palantir's Rule of 40 score — which combines revenue growth rate and profit margin — reached 145%, up from 64% in Q2 2024, a figure Karp said is matched only by a handful of peers including NVIDIA, Micron, and SK Hynix. Revenue per employee reached $1.5 million on an annualised basis.

The company also closed $2.41 billion in total contract value during the quarter. Separately, Palantir announced a strategic partnership with NVIDIA to deliver a "Sovereign AI OS" — a turnkey system combining NVIDIA Blackwell Ultra hardware with Palantir's full software suite for customers with data sovereignty or latency-sensitive requirements.

Shares were up roughly 1.5% in after-hours trading following the release.

Sources:
CNBC — Palantir Q1 2026 Earnings Report
Yahoo Finance — Palantir Q1 2026 Earnings: Revenue Surges 85%
Investing.com — Palantir Q1 2026: US Revenue Tops 100% Growth, Rule of 40 Hits 145%