01—Abstract
Summary
Summary of the 10-Q filed May 5, 2026. Cited figures are marked; the original filing is the authoritative source.
Palantir Technologies Inc. reported a strong first quarter for 2026, demonstrating significant top-line growth and improved profitability.
Revenue surged by 85% year-over-year to $1.63 billiona, driven by robust performance in both government (up 76%) and commercial (up 95%) segments, with substantial growth coming from existing customers. The company maintained impressive gross margins, expanding to 87% from 80% in the prior year quarter, indicating efficient cost management relative to revenue. Income from operations more than quadrupled, reaching $754 million, and net income attributable to common stockholders grew by over 300% to $870.5 million.
Key financial strengths include a substantial increase in cash, cash equivalents, and marketable securities, reaching $8.0 billionb by the end of the quarter, alongside positive net cash provided by operating activities of $899 million. This healthy liquidity position and strong operational cash flow provide flexibility for future investments and strategic initiatives. The company's focus on expanding customer relationships and its platform capabilities, including the growing Artificial Intelligence Platform (AIP), appear to be driving this accelerated growth and profitability.
02—Key points
Key Highlights
- Revenue grew 85% year-over-year to $1.63 billion.
- Government segment revenue increased 76% to $858.4 million.
- Commercial segment revenue increased 95% to $774.2 million.
- Gross margin improved significantly to 87% from 80% in the prior year quarter.
- Income from operations increased by 326% to $754 million.
- Net income attributable to common stockholders grew over 300% to $870.5 million.
- Total cash, cash equivalents, and marketable securities stood at $8.0 billion, with strong operating cash flow.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Palantir Technologies Inc. kept $0.53.
- Revenue$1.63B100.0%
- Cost of revenue−$215.8M13.2%
- Gross profit$1.42B86.8%
- Operating costs−$662.8M40.6%
- Operating income$754.0M46.2%
- Interest, other & tax$116.5M7.1%
- Net income$870.5M53.3%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 5, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.63B$883.86M | +84.7% |
| Cost of Revenue | $215.80M$172.97M | +24.8% |
| Gross Profit | $1.42B$710.88M | +99.3% |
| R&D Expenses | $160.98M$134.89M | +19.3% |
| Operating Expenses | $662.79M$534.84M | +23.9% |
| Operating Income | $754.00M$176.05M | +328.3% |
| Net Income | $870.53M$214.03M | +306.7% |
| EPS (Basic) | $0.36$0.09 | +300.0% |
| EPS (Diluted) | $0.34$0.08 | +325.0% |
| Shares Outstanding (Basic) | 2.39B2.35B | +1.9% |
| Shares Outstanding (Diluted) | 2.57B2.55B | +0.7% |
05—Questions
Frequently Asked Questions
What was the year-over-year revenue growth for Palantir in Q1 2026?
Palantir Technologies Inc. reported an 85% year-over-year increase in revenue for the three months ended March 31, 2026, reaching $1.63 billion compared to $883.9 million in the same period of 2025.
How did the government and commercial segments perform in Q1 2026?
The government segment revenue grew by 76% to $858.4 million, while the commercial segment revenue saw a 95% increase to $774.2 million for the three months ended March 31, 2026.
What is the company's current liquidity position?
As of March 31, 2026, Palantir Technologies Inc. had $8.0 billion in cash, cash equivalents, and short-term U.S. Treasury securities, indicating a strong liquidity position.
Did Palantir's profitability improve in Q1 2026?
Yes, profitability significantly improved. Income from operations increased by 326% to $754 million, and net income attributable to common stockholders grew by over 300% to $870.5 million for the three months ended March 31, 2026.
06—Continue