Palantir (PLTR.US) Q1 performance significantly exceeds expectations, revenue surges by 85%, marking the fastest growth since going public.

Data analysis and artificial intelligence software company Palantir (PLTR.US) reported first-quarter performance after the market closed on Monday, surpassing market expectations and raising annual guidance, demonstrating its strong growth momentum driven by AI demand. The financial report shows that the company's adjusted earnings per share for the first quarter were $0.33, higher than the market's expected $0.28; revenue reached $1.63 billion, also exceeding the expected $1.54 billion. The company stated that quarterly revenue increased by approximately 85% year-on-year, marking the fastest growth rate since at least its IPO in 2020. Net profit soared to $870.5 million, about four times that of the same period last year; earnings per share were $0.34, compared to $0.08 per share in the same period last year. Palantir CEO Alex Karp said in a letter to shareholders that the company's current financial performance is "almost unprecedented in the software industry on this scale." He also pointed out that the company's average annual revenue per employee has reached $1.5 million. Palantir also raised its full-year performance expectations. The company expects adjusted free cash flow to reach $4.2 billion to $4.4 billion, higher than the market's expectation of about $4.05 billion. For the second quarter, the company expects revenue to be around $1.8 billion, higher than analysts' expectations of $1.68 billion. Looking ahead, the company expects revenue for 2026 to reach approximately $7.65 billion to $7.66 billion, representing a 71% year-on-year growth, also higher than market expectations. Karp stated that the company's business in the U.S. government and commercial sectors is expected to double again by 2027. From a business structure perspective, government business remains a key pillar for the company. In the first quarter, revenue from U.S. government customers increased by 84% year-on-year to $687 million, further up from the previous quarter's 66% growth rate. The company had previously secured a 10-year U.S. Army contract worth up to $10 billion. Meanwhile, commercial business is also rapidly expanding. Revenue from U.S. commercial customers increased by 133% year-on-year to $595 million, slightly below market expectations of $605 million. During the reporting period, the company added several corporate partnerships, including with Airbus, Bain & Company, GE Aviation, and Stellantis NV. As of the end of March, the company's number of commercial customers in the past 12 months reached 1,007, a 31% year-on-year increase; unconfirmed revenue (remaining obligations) rose to $4.45 billion, a significant increase compared to the same period last year. Palantir's market value has surged in recent years, but its stock price has fallen by about 18% this year, in part due to concerns in the market that AI models may disrupt traditional software companies. Karp emphasized that the company's path is different from that of AI model developers. He said, "AI model companies are in fierce competition, with rapidly decreasing technology costs and constantly changing competitive landscape, our strategy is to build a strong business system that provides real value to the real world." The company currently employs AI models from multiple vendors, but the demand remains strong, and there is even a situation of supply unable to meet the demand.