Palantir Posts 85% Revenue Growth in Q1 Results
Palantir Technologies reported US$1.28bn in US revenue for the first quarter of 2026, a 104% increase from the prior year period.
The data and AI company posted 85% year-on-year revenue growth overall. Shares dropped 3% in after-hours trading following the announcement.
US government revenue climbed 84% year on year to US$687m. The company's total contract value reached US$2.41bn, up 61% from the previous year.
Government contracts drive performance
Alex Karp, CEO of Palantir Technologies, outlined the financial metrics in a shareholder letter.
"Palantir's Rule of 40 score has soared to 145%," he said. "We have shattered the metric, a feat matched only by other fellow AI infrastructure companies: NVIDIA, Micron and SK hynix."
The rule of 40 score reached 145%, while GAAP income from operations brought US$754m, representing a 46% margin.
Defence technology underpins expansion
Palantir's technology includes Project Maven, which has been deployed in US military operations.
"We believe it is not hyperbolic to say that nearly all AI workflows that actually create value – especially on the battlefield – are built on Palantir," Alex wrote in a letter to shareholders.
Revenue from defence and intelligence agencies accounted for the majority of government sales. The CEO notes the continued focus on US national security applications.
"It is worth noting there is really nobody making the case that the US military should have second-rate AI capabilities or lacklustre software. If we are going to ask someone to step into harm's way on behalf of our country, they deserve the best," Alex said.
"Palantir was founded to strengthen US national security, to protect Americans and their freedom. We have done so across Democratic and Republican administrations and on behalf of all Americans, with deep pride. The mission continues."
Guidance raised for full year
Palantir expects second quarter revenue between US$1.80bn and US$1.80bn.
The company raised full-year revenue guidance to between US$7.65bn and US$7.66bn. This represents a 10 percentage point increase from the prior quarter's forecast.
"Momentum surged as we grew 85% last quarter – our highest-ever year-over-year growth rate – by more than doubling our U.S. business and 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," Alex said.
The CEO highlighted the profit trajectory relative to historical revenue figures.
"Our record levels of revenue and profit are the direct results of the revolutionary way we built this business, which is unlike anything we have seen in corporate America," Alex continued.
"Indeed, we generated nearly as much in profit in the first quarter of the year as we did in revenue only 12 months ago. What business in the world, at this scale, has ever accomplished anything of the sort?"
Alex described the US market as the core of the business model. "The United States remains the centre, the constant core, of our business. And that business is erupting."
