Palantir (PLTR) Q1 earnings report 2026
palantir On Monday, it announced first-quarter results that beat analysts’ expectations and also issued above-forecast guidance.
Here’s how the company performed compared to analyst estimates compiled by LSEG:
- Earnings per share: 33 cents adjusted, 28 cents expected
- Revenues: 1.63 billion dollars, while the expectation was 1.54 billion dollars
Palantir’s revenue grew nearly 85% in the quarter, according to a report expressionThis marks the fastest increase in sales since at least 2020, when the company went public via a direct listing.
Net income roughly quadrupled to $870.5 million, or 34 cents per share, from $214 million, or 8 cents per share, the year before. Adjusted net income excludes the impact of stock-based compensation and income taxes.
Palantir, which has experienced an increase in market value in the last few years, also removed its full-year target. The company currently expects $4.2 billion to $4.4 billion in adjusted free cash flow, above StreetAccount’s consensus of $4.05 billion. In February, the company said it was looking for adjusted free cash flow of between $3.925 billion and $4.125 billion.
“Our financial results demonstrate a level of strength that will eclipse the performance of essentially every software company of this size in history,” Palantir CEO Alex Karp said in a letter to shareholders. he wrote. Karp wrote that revenue per employee reached $1.5 million annually.
Management called for second-quarter revenue of $1.8 billion, above the $1.68 billion consensus among analysts surveyed by LSEG.
The company projects revenue in 2026 to be between $7.65 billion and $7.66 billion, up 71% annually, above the LSEG consensus of $7.27 billion. In February, the company’s full-year revenue was between $7.182 billion and $7.198 billion.
Karp told CNBC’s Seema Mody that he expects government and commercial jobs in the U.S. to double again in 2027.
Palantir is known for providing the US government with software, services and artificial intelligence tools for military operations and defense.
Revenue for local government agencies rose 84% to $687 million in the first quarter, accelerating from 66% growth in the fourth quarter. Last year, Palantir announced it had signed a contract with the US Army worth up to $10 billion over 10 years.
In an interview with CNBC in March, Karp said his company’s artificial intelligence gives the United States and its allies an advantage in Iran and escalating conflicts in the Middle East.
“What makes America special right now is our lethal capabilities and our ability to fight,” Karp said in his speech at Palantir. AIPCon 9 in Maryland. Another key advantage, he added, is that “the AI revolution is uniquely American.”
The company prioritizes U.S. combat soldiers above all else, Karp said in a conference call with analysts Monday.
Business revenue from U.S. customers reached $595 million in the quarter; That figure was up 133% from the previous year but fell short of StreetAccount’s estimate of $605 million. Palantir during the quarter advertised opportunities with AirbusBain, GE Aviation And Stellantis.
Palantir said it had 1,007 commercial customers in the last 12 months ending March 31, up 31% from a year ago. At the end of March, $4.45 billion was counted in remaining performance obligations; this is an unrecognized measure of revenue and is up from $1.90 billion last year.
While shares of Palantir have risen nearly 23x since the end of 2022, they are down 18% this year. The decline came alongside a broader decline in software stocks amid fears that artificial intelligence models could hurt growth and models such as Anthropic and OpenAI could disrupt legacy businesses.
Karp tried to separate Palantir from model developers.
“There appears to be a rotation of AI model companies participating in an intensely competitive race where we see token costs dropping a thousandfold in just a few years and winners and losers switching places every six months,” Karp wrote. “Our path was different; we were overwhelmingly building a business that delivers results to our partners around the world as it is today.”
Karp said Monday that Palantir used models from various providers and the company still couldn’t keep up with demand.
— CNBC’s Seema Mody contributed to this report.
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