Palantir Technologies Inc.

First-quarter revenue rose 85% year over year and 16% sequentially to $1.633 billion. U.S. revenue increased 104% year over year and 19% sequentially to $1.282 billion; commercial revenue was $774 million, U.S. commercial revenue was $595 million, and government revenue was $858 million. Adjusted gross margin was 88%, adjusted income from operations was $984 million, adjusted operating margin was 60%, GAAP net income was $871 million, and GAAP EPS was $0.34; adjusted EPS was $0.33. Cash from operations was $899 million and adjusted free cash flow was $925 million. For Q2 2026, the company expects revenue of $1.797 billion to $1.801 billion and adjusted income from operations of $1.063 billion to $1.067 billion. For full-year 2026, Palantir raised revenue guidance to $7.65 billion to $7.662 billion, expects U.S. commercial revenue of more than $3.224 billion, raised adjusted income from operations guidance to $4.44 billion to $4.452 billion, and raised adjusted free cash flow guidance to $4.2 billion to $4.4 billion.

Alexander Karp said the quarter shows Palantir is not just benefiting from AI trends but is helping reshape customer operations, especially in the U.S. He repeatedly framed the company as counter-positioned against “AI slop,” arguing that real enterprise and defense use cases require ontology, FDEs, and a platform that can deliver auditable outcomes. His tone was highly confident and combative, emphasizing that Palantir is winning because its products actually work in production and because customers increasingly see that difference.

David Glazer highlighted the scale of the quarter: revenue of $1.633 billion, U.S. revenue growth of 104%, adjusted gross margin of 88%, adjusted operating margin of 60%, GAAP net income of $871 million, and adjusted free cash flow of $925 million. He said the company is raising full-year 2026 revenue guidance midpoint to $7.656 billion, a 10% increase from last quarter’s guidance, and lifting adjusted income from operations to $4.44 billion to $4.452 billion and adjusted free cash flow to $4.2 billion to $4.4 billion. He also noted $8 billion in cash, cash equivalents, and short-term U.S. Treasuries, and said expenses will ramp in 2026 as Palantir continues investing in product and technical hiring.

Analysts focused on how Palantir balances government and commercial demand, whether AI labs are pressuring software vendors in enterprise, and how defense growth could hold up under budget uncertainty or a continuing resolution. Karp said the company always prioritizes U.S. warfighters over everything else, even if that means shifting resources away from commercial work, while Ryan Taylor said customers that understand “load-bearing” operations want precision and governance rather than generic AI demos. On talent, Karp said recruiting remains highly competitive but Palantir attracts strong engineers by offering unique, high-impact work; on defense, Shyam Sankar said programs like Maven and Titan are active and that much of the Department’s demand is being pulled into 2026, though some factors remain outside Palantir’s control. Shyam also said AI labs often see the technology’s potential but not the practical constraints of turning it into economic value in enterprises.