Palantir earnings beat and raises 2026 guidance on strong U.S. demand

Palantir earnings came in stronger than Wall Street expected. The company reported Q1 revenue of $1.633 billion and adjusted EPS of $0.33, beating LSEG estimates of $1.54 billion revenue and $0.28 adjusted EPS. Overall sales rose 85% year over year, and the Rule of 40 score reached 145%. U.S. growth led the results. U.S. revenue was $1.282 billion, up 104% year over year, with the gap to non-U.S. sales remaining large. U.S. commercial revenue reached $595 million (+133% YoY), while U.S. government revenue was $687 million (+84% YoY). Palantir also closed 206 contracts worth at least $1 million each, lifting total contract value to $2.41 billion (+61% YoY). Cash generation was solid. Cash from operations was $899.2 million and adjusted free cash flow was $924.6 million. The firm ended the quarter with $8.0 billion in cash, cash equivalents, and short-term U.S. Treasuries. Guidance was raised. For full-year 2026, Palantir earnings expectations were lifted to $7.650–$7.662 billion revenue (vs. prior outlook), with U.S. commercial revenue forecast above $3.224 billion and adjusted free cash flow outlook raised to $4.2–$4.4 billion. Still, HSBC cut its rating to Hold from Buy and lowered its price target to $151, citing potential pressure from AI rivals and “agentic” competition. Traders watching Palantir earnings may react to both the upbeat forecast and the competitive risk narrative.