Palantir Posts Record 85% Q1 Growth on $1.63B Revenue, AI Demand Surging
Palantir reported Q1 2026 revenue of $1.63 billion, marking 85% year-over-year growth—the fastest quarterly growth in company history. U.S. business revenue surged 104%, while full-year guidance was significantly raised.
- Palantir achieved record 85% Q1 growth with $1.63B revenue, the fastest quarter in company history, driven by U.S
- expansion and AI demand
- Full-year 2026 guidance raised to $7.65–$7.66B (+71%), with Rule of 40 score hitting 145%
Palantir delivered Q1 2026 revenue of $1.63 billion, a record 85% year-over-year increase representing the fastest quarterly growth since its founding, according to SEC 8-K filings.
Q1 2026 Earnings Snapshot
Palantir's Q1 revenue reached $1.63 billion, up 85% year-over-year, with U.S. operations more than doubling to drive overall performance. Both commercial and government segments in the U.S. posted sharp acceleration. Management attributed the growth surge to strong demand for its AI platform capabilities.
- Revenue: $1.63 billion, +85% YoY
- EPS (GAAP): $0.34 / (Adjusted): $0.33
- Operating Income (GAAP): $754 million, 46% operating margin
- Adjusted Operating Income (ex-I&T, depreciation): $984 million, 60% margin
- Net Income (GAAP): $871 million, 53% net margin
- Operating Cash Flow: $899 million, 55% cash conversion
- Adjusted Free Cash Flow: $925 million, 57% conversion
- Cash & Short-term U.S. Treasuries: $8.0 billion
Q2 & Full-Year 2026 Outlook
Palantir raised Q2 2026 revenue guidance to $1.80–$1.81 billion, with adjusted operating income of $1.07 billion. For full-year 2026, the company significantly raised guidance to $7.65–$7.66 billion in revenue, representing 71% growth—a 10 percentage-point lift from prior quarter guidance. U.S. commercial revenue is projected at $3.24 billion or higher, implying 120%+ growth. CEO Alex Karp highlighted the company's Rule of 40 score reaching 145%, citing confidence in U.S. market acceleration as the rationale for the aggressive guidance raise.
Market Reaction
Bloomberg reported stock strength following the robust annual guidance outlook. MarketWatch noted this quarter marks Palantir's fastest revenue growth rate since inception. Specific share price movements and analyst price targets were not disclosed in SEC filings.
Segment Performance
- U.S. Total Revenue: $1.282 billion, +104% YoY, +19% QoQ
- U.S. Commercial Revenue: $595 million, +133% YoY, +18% QoQ
- U.S. Government Revenue: $687 million, +84% YoY, +21% QoQ
- Total Contract Value (TCV): $2.41 billion, +61% YoY
- U.S. Commercial TCV: $1.176 billion, +45% YoY
- U.S. Commercial Remaining Deal Value (RDV): $4.92 billion, +112% YoY
- Q1 Contracts ≥$1M: 206 / ≥$5M: 72 / ≥$10M: 47
This article was auto-generated from SEC 8-K filings and external reporting for rapid dissemination of key data post-announcement. Review official company filings before making investment decisions.
PLTRFrequently Asked Questions
Why is Palantir's Q1 growth particularly notable?
The 85% year-over-year growth represents Palantir's fastest single-quarter growth rate since inception. U.S. revenue more than doubled at 104%, marking exceptional momentum in the company's largest market.
What does a 145% Rule of 40 score mean?
Rule of 40 measures software company health by summing revenue growth rate plus operating margin. A score above 40 is considered excellent. Palantir's 85% growth + 60% operating margin = 145%, placing it alongside elite performers like NVIDIA, Micron, and SK Hynix.
How do GAAP and adjusted EPS differ?
GAAP EPS includes all expenses under U.S. accounting standards, such as stock-based compensation costs. Adjusted EPS excludes non-cash items like equity grants. Palantir's Q1 GAAP EPS of $0.34 was nearly identical to adjusted EPS of $0.33, indicating minimal non-cash impact.
What is Palantir's full-year 2026 revenue target?
Palantir projects 2026 revenue of $7.65–$7.66 billion, representing 71% growth year-over-year. This guidance was raised 10 percentage points from the prior quarter, reflecting confidence in U.S. market acceleration.
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