Palantir Technologies Inc (NYSE:PLTR) reported first quarter results on Monday that exceeded analyst expectations on both earnings and revenue, driven by strong growth in its US business, particularly in the commercial segment.
The data analytics firm posted adjusted earnings per share of $0.33, ahead of the $0.28 expected by analysts.
Revenue came in at $1.63 billion, also topping estimates of $1.54 billion and marking an 85% increase from a year earlier.
Growth was led by the US market, where revenue rose 104% year-over-year and 19% from the prior quarter to $1.28 billion. Within that, US commercial revenue surged 133% year-over-year to $595 million, while US government revenue climbed 84% to $687 million.
Palantir reported closing 206 deals worth at least $1 million during the quarter, including 47 deals exceeding $10 million. Total contract value reached $2.41 billion, up 61% from a year earlier.
US commercial total contract value grew 45% year-over-year to $1.18 billion, while remaining deal value in the segment more than doubled to $4.92 billion.
Profitability metrics also improved. The company posted GAAP net income of $871 million, representing a 53% margin, and GAAP operating income of $754 million, or a 46% margin.
Adjusted income from operations was $984 million, with a 60% margin. Adjusted free cash flow came in at $925 million, or a 57% margin.
Palantir ended the quarter with $8 billion in cash, cash equivalents, and short-term US Treasury securities.
“Our financial results now demonstrate a level of strength that dwarfs the performance of essentially every software company in history at this scale,” Palantir CEO Alex Karp said in a letter to shareholders.
Looking ahead, the company raised its full-year 2026 guidance. Palantir now expects revenue between $7.65 billion and $7.66 billion, representing growth of about 71% and above the prior forecast range of $7.182 billion to $7.198 billion, as well as the $7.27 billion consensus estimate.
The company also increased its outlook for US commercial revenue to more than $3.22 billion, implying growth of at least 120%. It raised its adjusted income from operations forecast to between $4.44 billion and $4.45 billion and expects adjusted free cash flow in the range of $4.2 billion to $4.4 billion.
Shares of Palantir added 0.3% at about $146 afterhours following the release of the report.