Record Revenue Growth
Total revenue of $1.633 billion in Q1 2026, up 85% year-over-year and 16% sequentially — the highest reported YoY growth rate as a public company.
Palantir Technologies
· PLTR
May 4th, 2026
Summary
- Earnings Call Date:
- 2026-05-04
- Change Since:
- -26.54%
- Next Earnings Date:
- 2026-08-10
Earnings Call Sentiment
PositiveThe call emphasized very strong growth, profitability, cash generation, and clear commercial and government momentum driven by the AIP platform, with multiple large bookings, raised guidance, and significant operational impacts cited. Key risks include rising expenses as the company invests in talent and product, capacity constraints as demand outpaces supply, concentration in the U.S., and timing/appropriations risk for government programs. On balance, the positives (record growth, margin strength, cash flow, and deal momentum) materially outweigh the manageable risks.
Company Guidance
The company raised full-year 2026 guidance to revenue of $7.65–$7.662 billion (midpoint $7.656B), implying ~71% year‑over‑year growth and a ~10% increase versus last quarter’s guidance, and provided quarter and annual profit and cash targets: Q2 revenue of $1.797–$1.801 billion with adjusted income from operations of $1.063–$1.067 billion; full‑year adjusted income from operations of $4.44–$4.452 billion; adjusted free cash flow of $4.2–$4.4 billion; and U.S. commercial revenue “in excess of $3.224 billion” (at least 120% growth). Management also said they expect GAAP operating income and net income in each quarter and that the 2026 guidance implies a full‑year Rule of 40 score of 129%.
U.S. Business and U.S. Commercial Surge
U.S. revenue was $1.282 billion, up 104% year-over-year and 19% sequentially; U.S. commercial revenue was $595 million, up 133% year-over-year and 18% sequentially. Company raised U.S. commercial revenue guidance to in excess of $3.224 billion (at least 120% growth).
Profitability and Margins Strength
Adjusted gross margin of 88%, adjusted operating margin of 60%, adjusted income from operations of $984 million, and GAAP net income of $871 million (53% margin).
Raised Guidance and Upsized Full-Year Outlook
Raised full-year 2026 revenue midpoint to $7.656 billion (guiding to ~71% YoY growth), a 10% increase over prior guidance; Q2 revenue guidance of $1.797–$1.801 billion; raised adjusted income from operations and adjusted free cash flow guidance for 2026.
Strong Cash Generation and Liquidity
Generated $899 million in cash from operations and $925 million in adjusted free cash flow in Q1 (margins of 55% and 57% respectively). Ended quarter with $8 billion in cash, cash equivalents, and short-term U.S. Treasuries.
Customer Momentum and Large Deal Activity
Total customer count of 1,007 (up 31% YoY and 6% sequentially). Trailing twelve-month revenue from top 20 customers increased 55% YoY to $108 million per customer. Closed $1.3 billion in commercial TCV bookings (up 42% YoY) and $2.4 billion in government TCV bookings (up 61% YoY).
Remaining Contract Value and RPO Expansion
Total remaining deal value of $11.8 billion (up 98% YoY and 6% sequentially) and remaining performance obligations of $4.5 billion (up 134% YoY and 9% sequentially). Net dollar retention was 150%, up 1,100 basis points sequentially.
Operational Impact and Notable Customer Wins
Major program wins and operational outcomes include: USDA contract up to $300 million; GE Aerospace reported a 26% increase in engine performance with AIP; Ship OS cut BOM approval from 200 hours to 15 seconds, sped contract reviews by 57–73%, and reduced monthly material planning time by 94%; Maven usage doubled in four months and is 4x over twelve months.
Ana Soro
Good afternoon. I'm Ana Soro from Palantir Technologies Inc.'s finance team, and I would like to welcome you to our first quarter 2026 earnings call. We will be discussing the results announced in our press release issued after the market closed and posted on our Investor Relations website. During the call, we will make statements regarding our business that may be considered forward-looking within applicable securities laws, including statements regarding our second quarter and fiscal 2026 results, management's expectations for our future financial and operational performance, and other statements regarding our plans, prospects, and expectations. These statements are not promises or guarantees and are subject to risks and uncertainties, which could cause them to differ materially from actual results. Information concerning those risks is available in our earnings press release distributed after the market closed today and in our SEC filings. We undertake no obligation to update forward-looking statements except as required by law. Further, during the course of today's call, we will refer to certain adjusted financial measures.
These non-GAAP financial measures should be considered in addition to, not as a substitute for, or in isolation from GAAP measures. Additional information about these non-GAAP measures, including reconciliation of non-GAAP to comparable GAAP measures, is included in our press release and investor presentation provided today. Our press release, investor presentation, and other earnings materials are available on our Investor Relations website at inve...
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