Palantir Technologies Inc (NASDAQ:PLTR) reported financial results for the first quarter of 2026 after the market close on Monday. Here's a rundown of the report.
- Palantir Technologies stock is gaining positive traction. Why is PLTR stock trading higher?
Palantir Q1 Earnings Highlights
Palantir reported first-quarter revenue of $1.63 billion, beating analyst estimates of $1.54 billion. The AI software company reported adjusted earnings of 33 cents per share for the quarter, beating analyst estimates of 28 cents per share, according to Benzinga Pro.
Total revenue was up 85% year-over-year in the quarter as U.S. revenue grew 104% year-over-year to $1.28 billion. U.S. Commercial revenue increased 133% year-over-year to $595 million and U.S. Government revenue jumped 84% year-over-year to $687 million. Palantir noted that its Rule of 40 score is now at 145%.
“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,” said Alex Karp, co-founder and CEO of Palantir.
The rule, which is commonly used to evaluate software-as-a-service companies' growth sustainability, ranks businesses by evaluating revenue growth and margins. The goal is to get in over 40%.
Palantir said it closed 206 deals worth over $1 million during the quarter, 72 deals worth at least $5 million and 47 deals worth at least $10 million.
Palantir generated $899 million in cash from operations and $925 million in adjusted free cash flow in the quarter. Palantir ended the period with approximately $8 billion of cash, cash equivalents and short-term U.S. treasury securities.
What’s Next For Palantir?
Palantir expects second-quarter revenue to be in the range of $1.797 billion to $1.801 billion, versus estimates of $1.679 billion. The company raised its full-year 2026 revenue guidance from a range of $7.18 billion to $7.20 billion to a new range of $7.65 billion to $7.66 billion versus estimates of $7.27 billion.
Palantir also guided for full-year U.S. Commercial revenue growth of at least 120%, up from prior guidance of at least 115%, and adjusted free cash flow of $4.2 billion to $4.4 billion, up from prior guidance of $3.93 billion to $4.13 billion.
“Our financial results now demonstrate a level of strength that dwarfs the performance of essentially every software company in history at this scale,” Karp said.
Palantir executives will further discuss the quarter on an earnings call scheduled for 5 p.m. ET.
PLTR Shares Move Higher
PLTR Price Action: Palantir shares were up 1.50% in after-hours, trading at $147.498 at the time of publication on Monday, according to Benzinga Pro.
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