Palantir's US commercial, government deals surge in Q1

Palantir continued to land enterprise accounts as its US commercial revenue jumped 133% in the first quarter.

The company reported better-than-expected first quarter results. Palantir reported first quarter earnings of $870 million, or 34 cents a share, on revenue of $1.63 billion, up 85% from a year ago. Non-GAAP earnings were 33 cents a share.

Wall Street was expecting Palantir to report non-GAAP first quarter earnings of 28 cents a share.

Key figures include:

• Palantir's Rule of 40 score is 145%.
• US revenue was up 104% to $1.28 billion.
• The company closed 206 deals of at least $1 million, 72 deals worth at least $5 million and 47 deals of at least $10 million.
• US government revenue was up 84% in the first quarter from a year ago to $687 million.
• US commercial revenue was up 133% from a year ago to $595 million.
• Palantir ended the first quarter with $8 billion in cash, cash equivalents and US Treasuries and no debt.

As for the outlook, Palantir said its second quarter revenue will be between $1.797 billion and $1.8 billion with adjusted income from operations between $1.063 billion and $1.067 billion.

For 2026, Palantir is projecting revenue of $7.65 billion and $7.662 billion with adjusted income from operations between $4.44 billion and $4.452 billion. Adjusted free cash flow will be between $4.2 billion and $4.4 billion.

Alex Karp, CEO of Palantir, said the following in the company's first quarter shareholder letter.

• "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."
• "We achieved this staggering growth with a hiring discipline that is too rare in the software industry today. This quarter, our revenue per employee rose to $1.5 million on an annualized basis. In the United States, that figure was $1.6 million."
• "We generated nearly as much in profit in the first quarter of the year as we did in revenue only twelve months ago."