Palantir revenue skyrockets 85% as U.S. commercial and government demand intensifies

Palantir Technologies (NASDAQ:PLTR) reported explosive financial results for the first quarter of 2026, solidifying its position as a primary beneficiary of the global shift toward integrated artificial intelligence and data analytics.

Total revenue for the quarter rose 85% year-over-year to $1.633 billion, significantly outpacing market expectations and reflecting a 16% sequential increase from the previous quarter.

The company's performance was powered primarily by its U.S. operations, which now account for the vast majority of its growth.

Total U.S. revenue grew 104% year-over-year to $1.282 billion.

Notably, the U.S. commercial sector saw a 133% surge to $595 million, while the U.S. government business remained the company's largest pillar, growing 84% to $687 million.

Palantir also demonstrated significant scale in its sales execution during the quarter, closing 206 deals valued at $1 million or more.

This included 72 deals over $5 million and 47 deals exceeding $10 million.

The Total Contract Value (TCV) closed during the quarter reached $2.41 billion, a 61% increase year-over-year.

A key indicator of future growth, the U.S. commercial Remaining Deal Value (RDV), climbed 112% year-over-year to $4.92 billion.

The quarter was also marked by a significant expansion in margins and cash generation.

Palantir reported GAAP net income of $871 million, representing a 53% margin and resulting in a GAAP EPS of $0.34.

The company’s "Rule of 40" score—a metric combining growth rate and profit margin—reached a staggering 145%.

Operating efficiency remained high, with adjusted income from operations totaling $984 million, a 60% margin.

The company also generated $925 million in adjusted free cash flow.

Elsewhere, Palantir concluded the quarter with $8 billion in cash, cash equivalents, and short-term U.S. Treasury securities, leaving it with one of the strongest balance sheets in the software sector.