Palantir's results were about as strong as Wall Street could've hoped for. The stock's falling anyway.
Softer-than-expected U.S. commercial revenues appeared to outweigh raised sales guidance.
Palantir Technologies NASDAQ: PLTR delivered a blockbuster Q1 2026 earnings report after the market closed on May 4. But 85% year-over-year (YOY) revenue growth and a Rule of 40 score of 145%, among other highlights, weren't enough to cheer investors.
Palantir warned that “we are seeing the death of legacy software.”
Analysts flagged the lagging performance of the international commercial business and noted that the stock's sky-high valuation leaves little room for error.
Palantir beats Q1 estimates on strong U.S. demand, lifts outlook. AI strength lifts ETFs like PLTW, IGV, SHLD despite valuation concerns.
Few stocks divide investors like Palantir (NASDAQ:PLTR | PLTR Price Prediction).
While the top- and bottom-line numbers for Palantir Technologies (PLTR) give a sense of how the business performed in the quarter ended March 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Palantir (NASDAQ: PLTR) delivered a strong first quarter, with revenue growth accelerating to 85% year-over-year, up from 70% in the prior quarter.
Palantir Technologies Inc. delivered Q1 revenue of $1.632 billion, beating estimates for the 11th consecutive quarter and accelerating to 85% growth. U.S. commercial revenue surged 133% year over year, and U.S. commercial remaining deal value soared to more than $4.9 billion. PLTR profitability scaled sharply, with operating income at $754 million and net income exceeding $870 million, both up significantly from the prior year.
Palantir Technologies (PLTR) has seen an increase of over 5x in the past two years. Its foundation was established on government contracts—including defense, intelligence, and federal entities—and that segment continues to expand rapidly.
Palantir Technologies delivered record Q1 2026 revenue growth, with total revenue up 85% YoY and 16% QoQ, beating consensus by 5.9%. US business now represents 79% of PLTR's mix, with US commercial revenue surging 133% YoY and US government revenue up 84%. PLTR secured $2.41 billion in total contract value bookings, a 61% YoY increase, underscoring robust demand and long-term relevance.