Palantir Crushes Q1, Raises Fy26 Guidance To 71% Growth
Palantir reported Q1 2026 revenue of $1.63 billion, up 85% year-over-year, beating EPS estimates and raising full-year 2026 revenue guidance to $7.65–$7.66 billion — implying 71% growth and roughly $400 million above consensus.
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%
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Jon WangJon studied Philosophy at the University of Cambridge and has been researching cryptocurrency full-time since 2019. He started his career managing channels and creating content for Coin Bureau, before transitioning to investment research for venture capital funds, specializing in early-stage crypto investments. Jon has served on the committee for the Blockchain Society at the University of Cambridge and has studied nearly all areas of the blockchain industry, from early stage investments and altcoins, through to the macroeconomic factors influencing the sector.