With first-quarter revenue of $1.63 billion — a figure representing 85% year-over-year growth and the strongest sales expansion since Palantir’s 2020 direct listing — the company also raised its full-year revenue outlook to a range of $7.65 billion to $7.66 billion, well above the $7.18 billion to $7.20 billion it had forecast in February.
Analysts had projected $1.54 billion in quarterly revenue, making the beat notable, per CNBC. At 71% annual growth, the revised full-year revenue range would also clear the $7.27 billion analyst consensus by a wide margin, CNBC noted.
On the bottom line, Palantir earned $870.5 million, or 34 cents per diluted share — compared with $214 million, or 8 cents per share, in the same period last year, representing a roughly fourfold increase. Adjusted earnings per diluted share came in at 33 cents.
U.S. revenue led the growth, rising 104% from last year to $1.28 billion. Government contracts with U.S. agencies brought in $687 million, up 84%, while domestic commercial clients added $595 million after a 133% increase. Palantir finished the quarter with 615 U.S. commercial customers, a 42% increase from a year ago.
Adjusted operating income reached $984 million, representing a 60% margin. Adjusted free cash flow came in at $925 million, a 57% margin. Palantir ended the quarter with $8.0 billion in cash, cash equivalents, and U.S. Treasury securities and no debt.
Second-quarter revenue guidance of roughly $1.8 billion cleared the $1.68 billion analyst consensus, per CNBC. On cash generation, Palantir lifted its full-year adjusted free cash flow target to a range of $4.2 billion to $4.4 billion, stepping up from the $3.93 billion to $4.13 billion band it had previously issued.
“The United States remains the center, the constant core, of our business. And that business is erupting,” CEO Alex Karp said in a letter to shareholders, according to Reuters.
Karp’s shareholder letter also highlighted that annualized revenue per employee had hit $1.5 million. Karp also told CNBC that he expects the U.S. business, spanning both government and commercial clients, to double again in 2027.
Palantir stock is down about 18% this year heading into the report.
