Palantir Technologies Inc. Q1 FY2026 earnings call

• Ryan Taylor noted 85% year-over-year revenue growth, 16% sequential growth, U.S. business now 79% of total revenue with over 100% year-over-year growth, Rule of 40 score climbed to 145. Highlighted work with companies like Motor, Freedom Mortgage, GE Aerospace, Ondas, World View, and the Department of War. - Shyam Sankar discussed how AIP workflows utilize more tokens, Jevons' paradox, and the need for a no-slop zone. Talked about work in U.S. government including Maven, Ship OS, and Apollo. - David A. Glazer highlighted outstanding first quarter results, raised full-year 2026 revenue guidance midpoint to $7.656 billion, adjusted gross margin 88%, adjusted income from operations $984 million with 60% operating margin. - Alexander C. Karp emphasized the company's unique position, growth in U.S. and commercial segments, and the importance of product and execution.

In the first quarter, total revenue grew 85% year-over-year and 16% sequentially to $1.633 billion. U.S. business was 79% of total revenue, growing 104% year-over-year and 19% sequentially. Commercial segment: First quarter commercial revenue grew 95% year-over-year and 14% sequentially to $774 million. U.S. commercial revenue grew 133% year-over-year and 18% sequentially to $595 million. Government segment: First quarter Government revenue grew 76% year-over-year and 18% sequentially to $858 million. U.S. Government revenue grew 84% year-over-year and 21% sequentially to $687 million.

• For Q2 2026, expect revenue of between $1.797 billion and $1.801 billion and adjusted income from operations of between $1.063 billion and $1.067 billion. - For full year 2026, raise revenue guidance to between $7.65 billion and $7.662 billion, U.S. Commercial revenue guidance to in excess of $3.224 billion (at least 120% growth), Adjusted Income from Operations guidance to between $4.44 billion and $4.452 billion, adjusted free cash flow guidance to between $4.2 billion and $4.4 billion, and continue to expect GAAP operating income and net income in each quarter of this year.

• Q: How does Palantir Technologies Inc. expect to navigate an environment where AI is pressuring software companies' capabilities?

A: Shyam Sankar said it's a tailwind, counter-positioned against legacy thin software and AI slop, focused on enterprise autonomy and ontology. Alexander C. Karp added almost every example of AI producing results in U.S. is by Palantir. - Q: How to balance between going after government deals and commercial deals?

A: Alexander C. Karp said prioritize U.S. warfighters over everything else, highly monogamous, and Ryan Taylor mentioned driving by customers understanding load-bearing context. - Q: About AI labs getting into enterprise, talent, and defense growth in election year?

A: Alexander C. Karp talked about talent being a battle, Shyam Sankar discussed defense work and AI lab challenges, and Alexander C. Karp added on defense and AI lab enterprise.