TLDR
- Palantir Q1 revenue jumps 85% as U.S. growth drives strong results
- PLTR slips after hours despite higher revenue and raised 2026 guidance
- Palantir closes 206 major deals as contract value climbs 61% yearly
- U.S. commercial revenue surges 133% as Palantir expands demand
- Palantir lifts full-year outlook as margins and cash flow strengthen
Palantir Technologies Inc. (PLTR) shares reported strong first-quarter 2026 results as revenue surged and margins expanded across key segments. However, the stock closed at $146.03 before falling to $144.22 after hours, reflecting late selling pressure. The update highlights rapid U.S. growth and rising deal activity despite short-term market volatility.
Palantir Technologies Inc., PLTR
Strong Revenue Growth and Expanding U.S. Operations
Palantir posted revenue of $1.633 billion for the first quarter, marking an 85% increase year over year. The company also recorded a 16% sequential rise, showing sustained demand across its platforms. U.S. revenue reached $1.282 billion, rising 104% compared to the same period last year.
U.S. commercial revenue stood at $595 million after a 133% annual increase, while government revenue reached $687 million. Both segments showed steady quarterly gains, reflecting broader adoption across industries. The company also doubled its U.S. business, reinforcing its domestic expansion strategy.
Deal activity remained strong as Palantir closed 206 contracts worth at least $1 million during the quarter. It also secured 72 deals above $5 million and 47 deals exceeding $10 million. Total contract value reached $2.41 billion, increasing 61% from the previous year.
Profitability Metrics and Cash Flow Strength
Palantir reported GAAP operating income of $754 million, translating to a 46% margin for the quarter. Adjusted operating income rose to $984 million, resulting in a higher margin of 60%. These figures indicate strong cost control alongside expanding revenue streams.
Net income reached $871 million, delivering a 53% margin and reflecting improved overall profitability. Adjusted EBITDA stood at $990 million, with a margin of 61%. The company also maintained consistent earnings per share, reporting $0.34 on a GAAP basis.
Cash flow performance remained solid as operating cash flow totaled $899 million during the quarter. Adjusted free cash flow reached $925 million, representing a 57% margin. Additionally, Palantir held $8.0 billion in cash and short-term U.S. Treasury securities.
Outlook Raised on Continued Market Momentum
Palantir raised its full-year 2026 revenue guidance to a range between $7.650 billion and $7.662 billion. The company also increased its adjusted operating income forecast to between $4.440 billion and $4.452 billion. This outlook reflects sustained growth expectations across core markets.
For the second quarter, Palantir expects revenue between $1.797 billion and $1.801 billion. Adjusted operating income is projected to range from $1.063 billion to $1.067 billion. These projections indicate continued expansion supported by ongoing demand.
The company also raised its U.S. commercial revenue forecast to exceed $3.224 billion, representing at least 120% growth. Furthermore, it expects adjusted free cash flow between $4.2 billion and $4.4 billion. These updates position Palantir for continued operational strength through 2026.
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