Palantir Technologies (PLTR) reported first-quarter 2026 financial results that exceeded Wall Street expectations, driven by explosive growth in its U.S. business. Revenue hit $1.63 billion, up 85% year-over-year and surpassing the consensus estimate of $1.54 billion. Adjusted earnings per share came in at $0.33, well above the $0.28 forecast, and more than 150% higher than the same quarter last year.
The company’s U.S. operations were the standout, with U.S. revenue jumping 104% year-over-year to $1.282 billion. Within that, U.S. commercial revenue surged 133% to $595 million, while U.S. government revenue rose 84% to $687 million. Palantir closed 206 deals worth at least $1 million each, including 72 deals of $5 million or more and 47 deals exceeding $10 million. Total contract value grew 61% year-over-year to $2.41 billion.
Management significantly raised full-year revenue guidance to a range of $7.65–$7.66 billion, implying 71% growth and a 10-percentage-point upgrade from the prior forecast. U.S. commercial revenue guidance was lifted to over $3.22 billion, indicating at least 120% growth. Adjusted income from operations guidance was set at $4.44–$4.45 billion, and adjusted free cash flow at $4.2–$4.4 billion. CEO Alex Karp emphasized the company’s Rule of 40 score reached 145%, a metric he says only a few tech firms have matched.
Despite the strong results, HSBC downgraded PLTR from buy to hold and slashed its price target to $151 from $205. Analyst Stephen Bersey warned that competitors like OpenAI are adopting similar on-the-ground engineering models, and the growing AI orchestration market could pressure Palantir’s valuation as rivals gain share.
Oppenheimer initiated coverage with an Outperform rating and a $200 price target, citing Palantir’s ontology-based architecture and high switching costs. PLTR shares were up about 1% in after-hours trading following the earnings release.
