Palantir Technologies beats quarterly estimates and raises revenue forecasts driven by demand for data analysis software from the US government.
The Denver-based data mining company posted better-than-expected results in the first quarter of 2026, showing strong growth mainly driven by the US market and increasing demand for AI-based data analysis solutions.
The company also raised its annual outlook, despite a slight decline in the stock during after-hours trading.
As Bloomberg recalls, Palantir has gained greater support from the Pentagon to continue providing Maven Smart System, a digital command and control platform that the US armed forces use for real-time target identification and prioritization in support of combat operations in Iran and Venezuela. US President Donald Trump praised the company’s “war capabilities and equipment.”
“The United States remains the center, the constant core, of our business. And this business is expanding strongly,” said CEO Alex Karp in the letter to shareholders.
All the details.
REVENUES AND PROFITS INCREASE IN THE FIRST QUARTER
Palantir Technologies closed the first quarter of 2026 with revenues of $1.63 billion, up 85% year-over-year and 16% compared to the previous quarter. This is the highest growth rate in the company’s history, exceeding analysts’ estimates of $1.54 billion. GAAP net income reached $871 million, with a margin of 53%, more than quadrupling compared to the same period in 2025.
THE ROLE OF THE US MARKET
The main driver of growth was the American market, where revenues more than doubled, marking a 104% increase and reaching $1.28 billion. Specifically, government contracts with US agencies generated $687 million, up 84%, while domestic commercial customers added $595 million, after a 133% increase, reports Quartz.
Additionally, Palantir ended the quarter with 615 commercial customers in the United States, a 42% increase compared to a year ago. The remaining value of US commercial operations reached $4.92 billion, up 112% year-over-year.
CONTRACTS AND PROFITABILITY
During the quarter, the company closed 206 contracts worth at least $1 million each, for a Total Contract Value of $2.41 billion, up 61%. The adjusted operating margin reached 60%, while adjusted free cash flow stood at $925 million.
GUIDANCE REVISED UPWARDS
In light of the first quarter results, Palantir raised its 2026 revenue guidance to $7.65-7.66 billion (from $7.18-7.20 billion), with US commercial revenues expected to exceed $3.22 billion (+120%) and adjusted free cash flow between $4.2 and $4.4 billion.
CEO KARP’S WORDS
In the letter to shareholders, CEO Alex Karp praised Palantir’s results: “We do not believe it is hyperbole to say that almost all AI workflows that truly create value – especially on the battlefield – are built on Palantir. We are an N of 1.” On profitability: “Our quarterly profit (the highest in the twenty-three-year history of our company) has more than quadrupled in just twelve months. These are not incremental or marginal improvements. They are signs of a phase change.”
STOCK PERFORMANCE
Despite better-than-expected results, the California company’s stock fell about 1.5% in after-hours trading following the release of quarterly data. As Bloomberg notes, before Monday’s earnings release, HSBC warned that Palantir faces increasing competition from rival tech companies as AI facilitates the development of similar services.
