Data analytics company Palantir Technologies (NASDAQ:PLTR) reported Q1 CY2026 results exceeding the market’s revenue expectations, with sales up 84.7% year on year to $1.63 billion. On top of that, next quarter’s revenue guidance ($1.80 billion at the midpoint) was surprisingly good and 7.4% above what analysts were expecting. Its non-GAAP profit of $0.33 per share was 18.1% above analysts’ consensus estimates.
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Palantir Technologies (PLTR) Q1 CY2026 Highlights:
- Revenue: $1.63 billion vs analyst estimates of $1.54 billion (84.7% year-on-year growth, 6.1% beat)
- Adjusted EPS: $0.33 vs analyst estimates of $0.28 (18.1% beat)
- Adjusted Operating Income: $983.5 million vs analyst estimates of $876.5 million (60.2% margin, 12.2% beat)
- The company lifted its revenue guidance for the full year to $7.66 billion at the midpoint from $7.19 billion, a 6.5% increase
- Operating Margin: 46.2%, up from 19.9% in the same quarter last year
- Free Cash Flow Margin: 56.6%, similar to the previous quarter
- Market Capitalization: $345.4 billion
Company Overview
Named after the all-seeing stones in "Lord of the Rings," Palantir Technologies (NASDAQ:PLTR) develops software platforms that help government agencies and enterprises integrate, analyze, and operationalize their data for decision-making.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Thankfully, Palantir Technologies’s 34.1% annualized revenue growth over the last five years was excellent. Its growth surpassed the average software company and shows its offerings resonate with customers, a great starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. Palantir Technologies’s annualized revenue growth of 49.6% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. 
This quarter, Palantir Technologies reported magnificent year-on-year revenue growth of 84.7%, and its $1.63 billion of revenue beat Wall Street’s estimates by 6.1%. Company management is currently guiding for a 79.2% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 52.9% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and indicates its newer products and services will catalyze better top-line performance.
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Customer Acquisition Efficiency
The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments.
Palantir Technologies is extremely efficient at acquiring new customers, and its CAC payback period checked in at 5.3 months this quarter. The company’s rapid recovery of its customer acquisition costs indicates it has a highly differentiated product offering and a strong brand reputation. These dynamics give Palantir Technologies more resources to pursue new product initiatives while maintaining the flexibility to increase its sales and marketing investments.
Key Takeaways from Palantir Technologies’s Q1 Results
We were impressed by how significantly Palantir Technologies exceeded analysts’ adjusted operating income and EPS expectations this quarter. We were also glad its revenue guidance for next quarter trumped Wall Street’s estimates. Zooming out, we think this was a solid print. The stock remained flat at $147.14 immediately following the results.
Indeed, Palantir Technologies had a rock-solid quarterly earnings result, but is this stock a good investment here? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).