Overview
- Palantir reported a blowout first quarter with $1.63 billion in revenue, $0.33 adjusted EPS, roughly 60% adjusted operating margin, about 57% adjusted free cash flow margin, and a Rule of 40 score far above typical software peers.
- U.S. and commercial sales led growth with U.S. revenue up about 104%, 206 deals worth $1 million or more closed, 47 deals above $10 million, and total contract value near $2.41 billion, while Reuters and other reports say the Pentagon selected Palantir’s Maven for command‑and‑control use.
- Market response is mixed: the stock remains down roughly 23% year to date even as some firms raised targets to the $200s and Rosenblatt reiterated a Buy, while others kept Hold ratings and warned that the shares trade at demanding multiples.
- Coverage has shifted to a new strategic risk: Palantir’s AIP currently integrates large models from Anthropic and OpenAI, which creates exposure to pricing, access or competitive moves by those labs that could hurt Palantir’s product economics.
- What to watch next are execution and model‑supplier dynamics because continuing high margins and growth require flawless delivery of large deals, further government adoption, stable access to third‑party models, and management of reputational risks tied to defense work.