Palantir stock rallies on fastest revenue growth since at least 2020
Investing.com -- Palantir Technologies on Monday reported fastest growth in sales since at least 2020 and raised its full-year 2026 revenue guidance that was well above Wall Street projections, sending its shares up more than 1% high in extended hours of trading.
“We are raising our full-year revenue guidance to 71% growth, 10 points ahead of our guidance from last quarter, driven by our confidence in an accelerating U.S. market,” said Alex Karp, Co-Founder and Chief Executive Officer of Palantir Technologies.
It said it is raising its revenue guidance to between $7.650 - $7.662 billion, versus the consensus of $7.2 billion.
Palantir is best known for providing software, services and artificial intelligence tools to the U.S. government for military operations and defense.
It reported first quarter 2026 revenue of $1.63 billion, representing 85% year-over-year growth, marking the fastest increase in sales since at least 2020, the year the company went public through a direct listing.
The surge in sales was driven by 104% year-over-year growth in U.S. revenue, with U.S. commercial revenue increasing 133% and U.S. government revenue rising 84%. The company said it also closed 206 deals worth at least $1 million during the quarter.
“Palantir’s Rule of 40 score has soared to 145%. We have shattered the metric, a feat matched only by other fellow AI infrastructure companies: NVIDIA, Micron and SK hynix. Momentum surged as we grew 85% last quarter—our highest-ever year-over-year growth rate—by more than doubling our U.S. business,” Karp added.
Palantir reported adjusted income from operations of $984 million and its adjusted earnings per share of $0.33, beat estimates of $0.28 per share.
Palantir also raised guidance for adjusted income from operations to $4.440 billion to $4.452 billion and adjusted free cash flow to $4.2 billion to $4.4 billion for the full year.