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Palantir Beats Q1 Estimates and Lifts 2026 Outlook on Surging U.S. AI Demand

The raised targets point to faster uptake of its AIP software across government plus business.

Overview

  • Palantir, which reported Monday after the close, posted first‑quarter revenue of $1.63 billion and adjusted earnings of $0.33 per share, topping Wall Street forecasts.
  • Management raised full‑year revenue guidance to $7.65 billion to $7.66 billion, set a higher second‑quarter target near $1.8 billion, and lifted adjusted free cash flow expectations to $4.2 billion to $4.4 billion.
  • U.S. commercial revenue jumped 133% to $595 million and U.S. government revenue rose 84% to $687 million, in what CEO Alex Karp called an erupting U.S. business and a category of its own.
  • AIP, Palantir’s Artificial Intelligence Platform, lets clients connect data across many systems and run AI that helps automate decisions such as supply planning or threat analysis.
  • Shares were roughly flat to down about 1% in late trading despite options pricing for a near 10% swing, as investors weighed stronger guidance against questions on commercial adoption, government contract pace, and new pressure from enterprise AI model vendors like Anthropic.