To The Moon

Palantir Earnings Crush. U.S. Revenue Surges 104% and Backlog Soars

$Palantir Technologies Inc.(PLTR)$   reported its FY26 Q1 earnings, with results coming in significantly above market expectations. Revenue, profitability, and order metrics all strengthened, further reinforcing its leadership in the AI software space.

Earnings Snapshot:

Revenue $1.63B (vs. $1.54B est., +85% Y/Y, +16% Q/Q)

Adjusted EPS $0.33 (vs. $0.28 est.)

Adjusted Operating Income $984M (60% margin)

U.S. Government Revenue $687M (vs. $0.61B est.)

U.S. Commercial Revenue $0.595B (vs. $0.603B est.)

From a growth mix perspective, the U.S. remains the core driver: total U.S. revenue reached $1.28B (+104% Y/Y, +19% Q/Q), with U.S. government revenue at $687M (vs. $0.61B est., +84% Y/Y, +21% Q/Q), clearly beating expectations; U.S. commercial revenue came in at approximately $0.595B (slightly below the $0.603B estimate), missing expectations modestly but still maintaining strong growth.

More importantly, forward-looking indicators remain robust: U.S. commercial Remaining Deal Value (RDV) reached $4.92B (+112% Y/Y, +12% Q/Q), indicating rapidly expanding backlog and suggesting that commercial growth momentum remains intact, with more of it likely to be realized over the coming quarters.

Order quality also improved, with the company closing 206 deals ≥$1M, 72 deals ≥$5M, and 47 deals ≥$10M during the quarter. The continued growth in large deals reflects enterprise adoption shifting from pilot programs to scaled deployments. Despite rapid revenue growth, the company maintained a 60% adjusted operating margin, underscoring its rare combination of high growth and high profitability in AI software.

Despite strong fundamentals, market divergence persists. Over the past six months, amid the narrative that“AI will reshape software,”Palantir Technologies shares have declined about 30%, while the S&P 500 gained around 6%, reflecting continued uncertainty around its long-term growth trajectory. At the same time, valuation remains well above market averages, with high growth expectations already partially priced in, leaving a high bar for future performance and guidance.

In summary, this earnings report is not only a "beat", but a comprehensive strengthening of fundamentals—revenue, orders, and profitability all improved in tandem. The core thesis remains intact: AI-driven commercial acceleration combined with a highly profitable model. Going forward, stock performance will depend on whether this growth can continue to be delivered, and how much valuation premium the market is willing to sustain.

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