Palantir $PLTR Q1'26 Results:

↗️$1,633M rev (+84.7% YoY, +16.1% QoQ) beat est by 6.3%

↗️Gross Margin* (87.9%, +5.7 PPs YoY)🟢

↗️Operating Margin* (60.2%, +16.0 PPs YoY)🟢

↗️Adj FCF Margin (56.6%, +14.7 PPs YoY)

↗️Net Margin (53.3%, +28.7 PPs YoY)🟢

↗️EPS* $0.33 beat est by 17.9%🟢

*non-GAAP

Revenue By Type

↗️Commercial $774M rev (+95.0% YoY, 47.4% Total rev)🟢

↗️US commercial $595M rev (+133.3% YoY)

➡️Government $858M rev (+76.2% YoY, 52.6% Total rev)🟡

Key Metrics

↗️DBNR 150% (139% LQ)

↗️RPO $4.45B (+134.2% YoY)

↗️Billings $1,750M (+93.3% YoY)🟢

Customers

➡️1,007 Customers (+30.9% YoY, +53)

↗️832 Commercial Customers (+33.8% YoY, +52)

➡️615 US Commercial Customers (+42.4% YoY, +44)

↗️217 International  Commercial Customers (+14.2% YoY, +8)

Operating expenses

↘️S&M*/Revenue 14.8% (-6.0 PPs YoY)

↘️R&D*/Revenue 7.6% (-4.0 PPs YoY)

↘️G&A*/Revenue 6.9% (-5.3 PPs YoY)

Quarterly Performance Highlights

↗️Net New ARR $903M (+300.8% YoY)

↘️CAC* Payback Period 3.5 Months (-8.7 YoY)🟢

↗️R&D* Index (RDI) 7.28 (+4.40 YoY)🟢

Dilution

↘️SBC/rev 12%, -1.6 PPs QoQ

↘️Basic shares up 2.0% YoY, -1.6 PPs QoQ

↘️Diluted shares up 0.7% YoY, -1.1 PPs QoQ🟢

Guidance

↗️Q2'26 $1,797.0 - $1,801.0M guide (+79.2% YoY) beat est by 7.0%

↗️$7,650.0 - $7,662.0M FY guide (+71.1% YoY) raised by 6.4% beat est by 6.4%

Pros

Strong revenue growth at 85% YoY signals demand strength

U.S. revenue expansion at 104% YoY drives scale

Operating margin at 60% shows high efficiency

Free cash flow margin near 57% supports liquidity

Commercial revenue growth 95% YoY accelerates

Net dollar retention at 150% confirms expansion

Cons

International growth lag at 26% YoY limits scale

Capacity constraints may slow deployment velocity

High expectations raise downside risk on miss

Government revenue tied to budget timing risks

Dependence on U.S. market increases concentration