Palantir Technologies Inc. Earnings Recaps
Q1 2026
May 5, 2026
Shares fell 5.7% after earnings as investor enthusiasm for Palantir’s operational AI platform was tempered by cautious commentary on model reliance risks and the complexity of scaling AI without introducing errors.
Key takeaways
- Reported an exceptionally high 85% year-over-year revenue growth and 16% sequential growth, with U.S. revenue doubling at 104% year-over-year.
- Highlighted strong adoption of the AIP platform across commercial and government sectors, including major partnerships with GE Aerospace and USDA contracts worth up to $300 million.
- Management emphasized the operational risks inherent in scaling AI models—specifically the challenge of avoiding error (“slop”) as token usage increases exponentially.
- Margins and long-term model reliability concerns suggest the company faces headwinds in converting AI-driven growth into consistent profitability.
- The market likely reacted negatively due to a cautious outlook on the sustainability of AI-driven workflows and the operational complexity of deploying AIP at scale.
Q3 2025
Nov 5, 2025
Palantir reported a standout Q3 2025 with revenue up 63% year-over-year, driven by robust growth in its U.S. commercial business, highlighting strong demand for its AI platform.
Key takeaways
- Q3 total revenue reached $2.8 billion, with U.S. commercial revenue up 121% year-over-year, reflecting increasing enterprise AI adoption.
- The company achieved a Rule of 40 score of 114%, underscoring excellent operational efficiency and growth.
- Palantir closed its highest total contract value (TCV) quarter ever, signing 204 deals above $1 million, including significant expansions from key customers.
- U.S. government business grew by 52% year-over-year, reinforcing Palantir's commitment to delivering mission-critical software.
- Significant advancements in AI applications within AIP demonstrate the company's capability to meet increasing demand for enterprise AI solutions.