Palantir reported strong quarterly results, with revenue rising 85% year-over-year to $1.63 billion, beating analyst estimates of $1.53 billion. The growth was overwhelmingly driven by the United States, where revenue reached $1.28 billion and thus accounted for the majority of total sales.
Segment breakdown
The US business expanded rapidly, more than doubling year-over-year. Within that, commercial revenue grew 133% to $595 million, while government revenue rose 84% to $687 million. During the quarter the company closed 206 contracts worth at least $1 million each, of which 47 exceeded $10 million. Total contract value amounted to $2.41 billion, a 61% increase versus the prior year.
Profitability and cash generation
Profitability metrics were particularly strong: adjusted earnings per share rose by more than 150% to $0.33 (consensus $0.28). Operating margin was 46%, and adjusted operating margin reached 60%. Free cash flow margin was 57%, and net income was $871 million, representing a 53% margin.
Palantir’s Rule of 40 increased to 145%, an extremely high level. Management noted that only a few AI infrastructure players such as Nvidia, Micron Technology, or SK hynix show comparable metrics. This combination indicates Palantir’s ability to grow rapidly while remaining highly profitable.
Management comments and strategy
Alex Karp, Palantir’s CEO, responded to the results by underscoring that the company built production platforms while some skeptics had questioned the commercial value of software and AI. He also highlighted that US business nearly doubled despite the company having virtually no traditional sales force.
Updated guidance
The company raised its full-year revenue guidance from around $7.18 billion to a new range of $7.65–$7.66 billion. US commercial revenue guidance was lifted to at least $3.22 billion, reflecting a projected 120% increase. Expectations for operating income and cash flow were also revised upward.
Market context
Palantir’s share price has fallen about 18% year-to-date, but the quarter’s results and the raised guidance may help restore investor confidence, particularly amid strong demand for AI and analytics solutions.
Related event
Topics like these will also be discussed at the Portfolio Investment Day 2026 investment conference on May 12, where professionals will share investment ideas across equities, bonds, commodities, crypto, real estate, and art markets.
(This article does not constitute investment advice.)
