Palantir Posts Blowout Q1 and Higher Outlook as Shares Slide on Valuation Concerns

Overview

• Palantir reported revenue of $1.633 billion, up 85% year over year, and raised full‑year guidance to $7.65–$7.66 billion, which signals roughly 71% growth.
• U.S. commercial sales led the surge, jumping 133% to $595 million, while total U.S. revenue rose 104% to $1.282 billion.
• Profitability stayed strong with a 60% adjusted operating margin, $925 million in adjusted free cash flow, and $8 billion in cash on hand.
• Backlog and pipeline expanded, with remaining deal value reaching $11.8 billion and remaining performance obligations hitting $4.5 billion, including a potential $300 million USDA deal and time‑saving gains for the Navy’s Ship OS program.
• Shares fell after the report as investors focused on rich valuation metrics, with the stock trading near 94 times forward earnings and 44 times forward sales.