Palantir beats earnings with $1.63 billion in revenue as adjusted EPS hits $0.33

Palantir Technologies (PLTR) beat Wall Street’s first-quarter expectations on Monday, reporting $1.633 billion in revenue and adjusted EPS of $0.33.

Analysts tracked by LSEG had expected $1.54 billion in revenue and $0.28 in adjusted earnings per share, so the company cleared both numbers.

Palantir’s overall sales rose 85% year over year and 16% from the previous quarter. Alex Karp, co-founder and CEO of Palantir, said the company’s Rule of 40 score reached 145%, adding that Palantir had “shattered the metric.”

Alex also said the quarter was helped by an 85% growth rate, the company’s highest annual growth rate so far, plus a U.S. business that more than doubled. He said full-year revenue guidance is now being raised to 71% growth, which is 10 percentage points higher than the company’s last forecast.

Palantir grows U.S. sales past $1.28 billion as commercial clients and government agencies spend more

Palantir got most of its firepower from the United States. U.S. revenue came in at $1.282 billion, rising 104% from last year and 19% from the previous quarter. The company is still getting large checks from American customers, and the gap between its U.S. business and everything else is not small.

The U.S. commercial segment brought in $595 million. That was up 133% year over year and 18% quarter over quarter. The U.S. government segment reached $687 million, rising 84% from last year and 21% from the fourth quarter.

The deal count also gave investors plenty to chew on. Palantir closed 206 contracts worth at least $1 million each. Out of that group, 72 deals were worth at least $5 million, while 47 deals crossed $10 million. Total contract value was $2.41 billion, up 61% year over year.

The U.S. commercial contract line was also heavy. U.S. commercial TCV reached $1.176 billion, up 45% from the year before. U.S. commercial remaining deal value climbed to $4.92 billion, up 112% year over year and 12% from the prior quarter.

Palantir raises its 2026 forecast as HSBC warns that AI rivals can pressure the stock

Palantir posted GAAP income from operations of $753.998 million, which gave it a 46% margin. Adjusted income from operations came in at $983.545 million, with a 60% margin.

Palantir’s GAAP net income attributable to common stockholders reached $870.527 million, equal to a 53% margin, while adjusted net income attributable to common stockholders was $856.450 million.

The company reported cash from operations of $899.165 million, or a 55% margin. Adjusted free cash flow was $924.630 million, with a 57% margin. Adjusted EBITDA came in at $990.310 million, equal to a 61% margin. GAAP diluted EPS was $0.34, while adjusted diluted EPS was $0.33.

Palantir ended the quarter with $8.0 billion in cash, cash equivalents, and short-term U.S. Treasury securities. For Q2 2026, Palantir expects revenue between $1.797 billion and $1.801 billion. It also expects adjusted income from operations between $1.063 billion and $1.067 billion.

For full-year 2026, the company raised its revenue forecast to $7.650 billion to $7.662 billion. It lifted its U.S. commercial revenue forecast to more than $3.224 billion, which would mean growth of at least 120%. 

Palantir also raised its adjusted income from operations forecast to $4.440 billion to $4.452 billion and its adjusted free cash flow outlook to $4.2 billion to $4.4 billion. Palantir also said it still expects GAAP operating income and GAAP net income in every quarter this year.

The strong numbers did not stop HSBC Holdings (HSBC) from cutting Palantir to hold from buy and lowered its price target to $151 from $205, giving PLTR only a 4.2% possible surge from its price as of Monday’s close.

Stephen Bersey, an HSBC analyst, said Palantir became successful by putting engineers close to customers so they could set up software and help clients use the company’s AI platform.

Stephen said that model may face more pressure now because other companies are trying similar methods, naming OpenAI as one rival using a related approach. 

He then pointed to AI agents, agentic frameworks, and model context protocol servers as tools that could make Palantir’s software space easier for competitors to enter.

HSBC said the AI orchestration market is growing fast, but warned that more rivals gaining share could pressure Palantir’s valuation.

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