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Earnings Takeaway

Revenue
$1.63B, up 85% YoY — fastest growth since the 2020 IPO, beat estimates by ~$90M
Net Income
$870M, nearly 4x last year — 53% GAAP margin
EPS
$0.33 adjusted vs. $0.28 expected
Free Cash Flow
$925M at a 57% margin — the profitability is real
Cash & Debt
$8B on hand, zero debt
Rule of 40
145% — absurdly high for a company this size
US Commercial
$595M, up 133% YoY — the standout number, 615 customers (+42%)
US Government
$687M, up 84% — Maven Smart System + $300M USDA deal
Deals Closed
206 deals worth $1M+, including 47 above $10M
Q2 Guidance
~$1.8B vs. $1.68B expected
Full-Year Guidance
Raised to $7.65–7.66B (+71% YoY), up from $7.18–7.20B in February

Palantir reported its fastest revenue growth since going public in 2020. The 85% year-on-year jump to $1.633 billion wasn’t close — it cleared the $1.54 billion analyst consensus by nearly $100 million.

Net income hit $870.5 million, a GAAP figure, up from $214 million a year ago. That’s nearly a fourfold increase in a single year. Adjusted operating income came in at $984 million — a 60% margin.

Revenue per employee hit $1.5 million annualised, according to CEO Alex Karp.

“Our financial results now demonstrate a level of strength that dwarfs the performance of essentially every software company in history at this scale.”

AK
Alex Karp CEO, Palantir Technologies

The US is doing all the heavy lifting

Total US revenue grew 104% year-on-year to $1.282 billion — meaning the US alone is now bigger than the entire company was not long ago. And within that, the commercial segment is the real story.

Revenue Breakdown — Q1 2026

Segment Revenue Growth (YoY)
US Commercial $595M +133%
US Government $687M +84%
Total US $1.282B +104%
International $351M Remainder

*Figures based on Q1 2026 earnings report.

US commercial clients now number 615, up 42% from a year ago. The company closed 206 deals worth $1 million or more during the quarter — including 72 deals above $5 million and 47 above $10 million. That’s not a pipeline story. That’s a scaling sales motion.

The government side is still large and growing. US government revenue hit $687 million, up 84%, driven by continued expansion of the Maven Smart System across DoD programmes and a fresh $300 million USDA agreement that came into effect this quarter.

Palantir Revenue Velocity

Annual Revenue ($B) and YoY Growth Rate

$0.6B
’18
$1.1B
’20
$1.9B
’22
$2.9B
’24
+56%
’25
+71%
’26E
*2026 based on midpoint guidance Credit: Jair Capital

“I expect the US business (both government and commercial) to double again in 2027.”

AK
Alex Karp CEO, Palantir Technologies

Guidance: even more aggressive

Management raised full-year 2026 revenue guidance to $7.65–7.66 billion, up from the $7.18–7.20 billion they forecast in February. That implies roughly 71% annual growth — well above the $7.27 billion analyst consensus.

Q2 guidance of approximately $1.8 billion also topped the $1.68 billion Wall Street expected.

2026 Guidance (Raised)

Full-Year Revenue

$7.65B – $7.66B
+71% YoY

Q2 Revenue Est.

~$1.8B
vs. $1.68B analysts

US Commercial

$3.224B+
+120% YoY
Credit: Jair Capital

US commercial revenue guidance of at least $3.224 billion with at least 120% growth[cite: 1] is the line that will get the most scrutiny. That’s not a conservative sandbag — it’s a statement of intent, and the market will hold them to it.

“Palantir uses models from a variety of providers, and still, the company can’t keep up with demand.”

AK
Alex Karp CEO, Palantir Technologies

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