Tech giant Palantir Technologies Inc. announced its first quarter of 2026 financial results, surpassing analysts’ expectations, and issued guidance that also beat estimates.
Palantir’s revenue increased approximately 85% in the quarter, representing the fastest sales growth since at least 2020, the year it went public via a direct listing.
Alex Karp, Co-Founder and Chief Executive Officer of Palantir Technologies, told investors, “Palantir’s Rule of 40 score has soared to 145%. We have shattered the metric, a feat matched only by other fellow AI infrastructure companies: NVIDIA, Micron and SK hynix. Momentum surged as we grew 85% last quarter—our highest-ever year-over-year growth rate—by more than doubling our U.S. business, and now we are raising our full-year revenue guidance to 71% growth, 10 points ahead of our guidance from last quarter, driven by our confidence in an accelerating U.S. market.”
In his letter to shareholders, Karp wrote: “Our financial results now demonstrate a level of strength that dwarfs the performance of essentially every software company in history at this scale. We generated $1.6 billion in revenue in the first quarter of this year, a new record in our company’s history, representing a soaring 85% growth rate over the same period the year before. Put differently, we almost doubled the size of our entire business, of all of our revenues generated across the government and commercial sectors, in the span of only twelve months. The significance of this accomplishment, the magnitude of this feat against not insignificant headwinds, may be lost on some.”
Q1 2026 highlights include:
- U.S. revenue grew 104% year-over-year and 19% quarter-over-quarter to $1.282 billion
- U.S. commercial revenue grew 133% year-over-year and 18% quarter-over-quarter to $595 million
- U.S. government revenue grew 84% year-over-year and 21% quarter-over-quarter to $687 million
- Revenue grew 85% year-over-year and 16% quarter-over-quarter to $1.633 billion
- U.S. commercial remaining deal value (“RDV”) of $4.92 billion, up 112% year-over-year and 12% quarter-over-quarter
- Rule of 40 score of 145%
- Cash, cash equivalents, and short-term U.S. Treasury securities of $8.0 billion
Palantir also lifted its full-year guidance. For Q2, the company anticipates revenue of between $1.797 – $1.801 billion. For the full year, company revenue guidance is between $7.650 – $7.662 billion.
Palantir shares rose 2% in premarket trading following the announcement.
By CEO NA Editorial Staff
