Palantir Q1 Earnings: Revenue Beat, EPS In Line, Customer Count Up 39%, Company Raises Guidance Citing 'Surging And Ferocious Growth'

Palantir Technologies Inc PLTR reported first-quarter financial results after the market close on Monday. Here’s a rundown of the report.

Q1 Earnings: Palantir reported first-quarter revenue of $883.86 million, beating analyst estimates of $862.83 million. The company reported first-quarter adjusted earnings of 13 cents per share, in line with analyst estimates.

Palantir has now met or exceeded analyst estimates for revenue and earnings in seven straight quarters, according to Benzinga Pro data.

Total revenue was up 39% year-over-year as U.S. revenue grew 55% year-over-year to $628 million. U.S. Commercial revenue grew 71% year-over-year to $255 million and U.S. Government revenue climbed 45% year-over-year to $373 million.

Palantir's customer count grew 39% year-over-year and 8% on a quarter-over-quarter basis. The company said it closed 139 deals worth over $1 million during the quarter and 51 deals worth at least $5 million. Palantir generated $310 million in cash from operations and $370 million in adjusted free cash flow in the quarter. 

Palantir ended the quarter with $5.4 billion of cash, cash equivalents and short-term U.S. treasury securities.

“Our Rule of 40 score increased to 83% in the last quarter, once again breaking the metric. We are in the middle of a tectonic shift in the adoption of our software,” said Alex Karp, co-founder and CEO of Palantir.

“We are delivering the operating system for the modern enterprise in the era of AI. Consequently, we are raising our full-year guidance for total revenue growth to 36% and our guidance for U.S. commercial revenue growth to 68%.”

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Outlook: Palantir expects second-quarter revenue to be in the range of $934 million to $938 million versus estimates of $899.12 million.

The company also raised its full-year guidance. Palantir expects full-year 2025 revenue of $3.89 billion to $3.90 billion, up from prior guidance of $3.74 billion to $3.76 billion. Analysts were anticipating full-year revenue of $3.75 billion, according to Benzinga Pro.

Palantir raised guidance for full-year U.S. commercial revenue, full-year adjusted income from operations and adjusted free cash flow. The company now expects full-year adjusted free cash flow of $1.6 billion to $1.8 billion, up from prior guidance of $1.5 billion to $1.7 billion.

Finally, Palantir continued to guide for positive GAAP operating income and net income in each quarter of 2025.

“This is a level of surging and ferocious growth that would be spectacular for a company a tenth of our size. At this scale, however, our ascent is, we believe, unparalleled,” Karp said in a letter to shareholders.

Palantir executives will further discuss the quarter on a conference call with investors and analysts at 5 p.m. ET.

PLTR Price Action: Palantir shares were up approximately 64% year-to-date heading into Monday’s report. The stock was down 9.23% in after-hours, trading at $112.35 at the time of publication Monday, according to Benzinga Pro.

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