Palantir Q1 Revenue Jumps 85% to $1.63B, Raises Outlook
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- Palantir reported Q1 2026 revenue of $1.63 billion, an 85% year‑over‑year increase and the strongest sales expansion since its 2020 direct listing.
- Palantir lifted its full‑year revenue outlook to $7.65 billion‑$7.66 billion, surpassing its prior $7.18 billion‑$7.20 billion forecast and the $7.27 billion analyst consensus.
- Palantir posted a net profit of $870.5 million (34 cents per diluted share), up from $214 million (8 cents) a year earlier, while adjusted EPS was 33 cents.
- U.S. revenue grew 104% to $1.28 billion, with government contracts $687 million (up 84%) and domestic commercial sales $595 million (up 133%).
- Palantir generated $984 million of adjusted operating income (60% margin) and $925 million of adjusted free cash flow (57% margin), ending the quarter with $8.0 billion in cash and no debt.
- CEO Alex Karp said the United States remains the core of the business and projected the U.S. segment to double again in 2027.
- Palantir raised its full‑year adjusted free cash flow target to $4.2 billion‑$4.4 billion, up from the previous $3.93 billion‑$4.13 billion range.
Why it matters: Palantir’s 85% Q1 revenue surge lifts cash generation, with $8 billion on hand and a revised $4.2‑$4.4 billion free‑cash‑flow target; U.S. revenue grew 104% to $1.28 billion in 2026, and its stock’s 18% decline this year creates a lower‑price, cash‑rich valuation for investors.
