Palantir beats earnings expectations, raises full-year guidance as US revenue doubles

Shares in Palantir Technologies Inc. sagged more than 2% in late trading today despite the big-data analytics company beating first-quarter expectations and raising full-year guidance for the second consecutive quarter.

For its fiscal 2026 first quarter that ended on March 31, Palantir reported adjusted earnings per share of 33 cents, up from 13 cents per share in the same quarter of last year, on revenue of $1.63 billion, up 85% year-over-year. Both figures came in ahead of the 28 cents per share and revenue of $1.54 billion expected by analysts.

The 85% top-line growth was Palantir’s highest-ever year-over-year rate.

Palantir saw U.S. revenue grow 104% year-over-year, to $1.282 billion, with U.S. commercial revenue growing 133%, to $595 million, and U.S. government revenue up 84%, to $687 million.

The company closed 206 deals worth at least $1 million in the quarter, including 72 deals of at least $5 million and 47 of at least $10 million. Total contract value closed reached $2.41 billion, up 61% year-over-year. U.S. commercial remaining deal value, the contracted revenue not yet recognized, jumped 112% year-over-year, to $4.92 billion.

Net income more than quadrupled, to $871 million, up from $214 million a year earlier, for a 53% margin. Adjusted operating income was $984 million on a 60% margin, cash from operations came in at $899 million, and adjusted free cash flow was $925 million.

Palantir ended the quarter with $8 billion in cash, cash equivalents and short-term U.S. Treasury securities on hand.

The company put its Rule of 40 score, the sum of revenue growth and adjusted operating margin, at 145%.

“We have shattered the metric, a feat matched only by other fellow AI infrastructure companies: Nvidia, Micron and SK Hynix,” co-founder and Chief Executive Alex Karp said in a company’s earnings release. “Now we are raising our full-year revenue guidance to 71% growth, 10 points ahead of our guidance from last quarter, driven by our confidence in an accelerating U.S. market.”

For its fiscal 2026 second quarter, Palantir said that it expects revenue of $1.797 billion to $1.801 billion and adjusted operating income of $1.063 billion to $1.067 billion.

For full-year 2026, Palantir raised revenue guidance to between $7.65 billion and $7.662 billion, ahead of analyst expectations of $7.27 billion. U.S. commercial revenue guidance was raised to in excess of $3.224 billion, growth of at least 120%. Adjusted operating income guidance was lifted to $4.44 billion to $4.452 billion. Adjusted free cash flow guidance was raised to $4.2 billion to $4.4 billion, ahead of an expected $4.05 billion.

Image: Palantir