Palantir beat earnings and revenue estimates last quarter, driven by a large increase in United States government revenue.
Earnings per share were US$0.33, up from $0.13 one year ago and above LSEG consensus estimates of $0.28. Revenue grew 85% to $1.63 billion, passing estimates of $1.54 billion.
“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,” said CEO Alex Karp. The Rule of 40 combines revenue growth and profit margin.
“Momentum surged as we grew 85% last quarter—our highest-ever year-over-year growth rate—by more than doubling our U.S. business, and now 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.”
U.S. government revenue rose 84% year-over-year to $687 million, while total U.S. revenue increased 104% to $1.28 billion.
Palantir did not disclose the details of its U.S. government contracts, but its software is used by Immigration and Customs Enforcement (ICE) to surveil immigrants. It closed $1.18 billion in U.S. commercial total contract value last quarter, up 45%.
The results follow calls from United Kingdom and Australian lawmakers to end contracts with the company after it posted a manifesto last month demanding increased military “hard power” and referring to some cultures as “regressive and harmful”. Palantir has more than UK£500 million in U.K. contracts and around A$80 million in Australian contracts.
Adjusted income from operations was $983.55 million, up from $390.71 million one year ago. Its guidance for the next quarter includes income from operations of $1.063-1.067 billion, and across 2026 it expects $4.440-4.452 billion.
Palantir (NASDAQ: PLTR) shares closed 1.4% higher at $146.03, but fell 2.6% after-hours.
Its shares have shed 13% year-to-date amid sell-offs of software-as-a-service stocks. Palantir’s market capitalisation is $350.06 billion.
