Palantir Q1 2026 Earnings: Revenue, EPS & Guidance Breakdown

Fastest Revenue Growth Since Listing

Palantir Technologies (PLTR) reported Q1 2026 revenue of $1.63 billion, up 85% year-over-year and 16% sequentially from Q4 2025. The 85% annual growth rate is the highest the company has recorded since listing on the New York Stock Exchange in 2020. The quarter's revenue total surpassed what Palantir reported for all of Q1 2025 by a wide margin, reflecting both new customer additions and deepening spend within the existing base.

The quarter was driven predominantly by U.S. operations. Domestic revenue grew 104% year-over-year and represented 79% of total revenue, highlighting a significant divergence between Palantir's traction in American enterprise and government markets relative to international geographies.

U.S. Revenue Concentration

The 104% domestic growth rate and 79% U.S. revenue share reflect where Palantir's AI platform is seeing its fastest deployment cycles. International revenue accounted for the remaining 21% of total revenue and grew at a considerably slower pace, indicating that enterprise and government adoption outside the United States remains at an earlier stage.

U.S. government and commercial contracts tend to carry multiyear structures, providing a degree of forward revenue visibility. That characteristic distinguishes Palantir's domestic contract mix from its international pipeline, where deal cycles and procurement timelines differ materially.

Commercial and Government Segment Results

Palantir's commercial segment reported $774 million in revenue, up 95% year-over-year. U.S. commercial revenue specifically grew 133% year-over-year, reflecting accelerating enterprise adoption of Palantir's AIP platform. The commercial segment now accounts for roughly 47% of total revenue and has been the faster-growing portion of the business in recent quarters.

Government revenue reached $858 million, up 76% year-over-year. A $300 million contract with the U.S. Department of Agriculture was the largest single disclosed award in the quarter. The USDA contract illustrates continued federal agency investment in AI-powered data infrastructure, a segment Palantir has targeted since its founding. The government segment represents approximately 53% of total Q1 revenue.

Customer Count and Net Dollar Retention

Total customer count reached 1,007 as of Q1 2026, up 31% year-over-year and the first time the company has crossed the 1,000-customer threshold. Net dollar retention was 150%, meaning existing customers spent 50% more in the quarter than they did in the same period a year ago. Net dollar retention measures revenue expansion within the existing customer base, excluding the contribution of newly added accounts.

A 150% net dollar retention rate alongside 31% customer count growth indicates that Palantir is simultaneously expanding its client roster and increasing contract size within accounts already on the platform. Both metrics moving in the same direction points to broad adoption across the customer base rather than growth concentrated in a handful of large accounts.

Rule of 40 and Platform Adoption

Palantir's Rule of 40 score reached 145 in Q1 2026, up from 127 in the prior quarter. The Rule of 40 is a software industry benchmark calculated by adding a company's revenue growth rate to its profit margin; scores above 40 are considered healthy for software businesses, and scores above 100 are uncommon at Palantir's revenue scale. The sequential increase from 127 to 145 reflects both the acceleration in top-line growth and sustained margin discipline.

Maven Smart System, Palantir's AI defense platform, saw usage double in four months and reach four times the level recorded twelve months ago. The company did not provide a separate revenue line for Maven, but the usage trajectory points to deepening penetration within the defense and intelligence community.

Cash Generation at Scale

Adjusted free cash flow for the quarter was $925 million, with cash from operations at $899 million. Palantir's total revenue in Q1 2025 was approximately $884 million, meaning the company generated more in adjusted free cash flow in Q1 2026 than it earned in total revenue in the same quarter one year prior. That comparison illustrates the degree to which the business has scaled its cash production over a twelve-month period.

The level of cash generation gives Palantir meaningful capacity for continued platform investment without relying on external financing. Management did not detail specific capital allocation plans beyond general operational priorities for the remainder of the year.

Full-Year 2026 Guidance

Palantir raised its full-year 2026 revenue guidance to $7.656 billion, a 10% increase from prior guidance and implying 71% year-over-year growth. Given Q1 revenue of $1.63 billion, the revised target requires an average quarterly run rate of approximately $2.01 billion across the remaining three quarters, a step-up from Q1's pace. For additional context on the broader AI and technology sector, Beta Finch's [AI & Technology earnings](/groups/technology) coverage tracks comparable results across the sector.

Management acknowledged ongoing variables, including potential government budget reallocations and macroeconomic conditions, that could affect the pace of new contract awards in subsequent quarters. The guidance figure does not embed a specific provision for those scenarios. A full breakdown of the quarter's financials is available in the [Palantir Q1 2026 earnings podcast](/podcasts/PLTR_Q1_2026).

Q1 2026 Results at a Glance

• Q1 2026 revenue: $1.63 billion, up 85% year-over-year and 16% sequentially
• U.S. revenue grew 104% year-over-year and represented 79% of total revenue
• Commercial revenue: $774 million, up 95% year-over-year; U.S. commercial up 133%
• Government revenue: $858 million, up 76% year-over-year; includes $300 million USDA contract
• Total customers: 1,007, up 31% year-over-year; net dollar retention at 150%
• Rule of 40 score: 145, up from 127 in Q4 2025
• Adjusted free cash flow: $925 million; cash from operations: $899 million
• Full-year 2026 revenue guidance raised to $7.656 billion, implying 71% growth