Happy Monday To My Favorite Humans!
After the bell today one of our favorite company’s and investments Palantir $PLTR came out with first quarter earnings, and just like all 4 quarters in 2025 they ripped the cover off the ball, for the non baseball fans reading this, they had insanely great earnings that beat wall streets estimates that painted perfect financial art.
These Results and Forecast Are Literally The Best Results I’ve Ever Seen From A Software Company, and Part Of The Reason Why $PLTR Is One Of Our Top Risk vs Reward Longterm Exponential Growth Investments.
Revenue: $1.633 billion (+85% YoY) — vs. consensus ~$1.54B.
U.S. Revenue: $1.282 billion (+104% YoY), with U.S. Commercial +133% and U.S. Government +84%.
Adjusted EPS: $0.33 (vs. consensus ~$0.28).
GAAP Net Income: $871 million (53% margin).
Adjusted Operating Margin: 60%.
Rule of 40 Score: 145% (revenue growth + adjusted op. margin).
Strong deal activity: 206 deals ≥$1M, record TCV, and U.S. commercial remaining deal value +112% YoY.
Raised Full-Year 2026 Guidance (significantly)
Revenue: $7.65B – $7.66B (~71% YoY growth) — previously ~$7.19B midpoint.
U.S. Commercial Revenue: >$3.224B (≥120% growth).
Adjusted Income from Operations: $4.44B – $4.45B.
Adjusted Free Cash Flow: $4.2B – $4.4B.
I want my readers to understand that we are still in the early innings for AI, and for $PLTR’s growth, Bottom line: Explosive U.S.-led growth (especially commercial AI demand) drove an outstanding beat and big upward revision to the outlook. This was Palantir’s highest-ever YoY revenue growth rate. Wall St who has missed Palantir like they do with all of the best innovation companies (AMZN, TSLA, BITCOIN ECT) will continue to say its expensive, and they are right if you look at traditional measures of software companies, but here’s the thing $PLTR is not you average SAAS company, they are truly a one of a kind company, and in my opinion they will become a multi trillion dollar company in the not so distant future. I dont advise that we trade this stock, this is clearly a buy and hold and DCA on weakness until further notice. Here’s a look at What the king of Palantir Alex Karp said on the earnings call:
“We believe it is not hyperbolic to say that nearly all AI workflows that actually create value—especially on the battlefield—are built on Palantir.”
“Our financial results now demonstrate a level of strength that dwarfs the performance of essentially every software company in history at this scale.”
“We generated $1.6 billion in revenue in the first quarter of this year, a new record in our company’s history, representing a soaring 85% growth rate over the same period the year before.”
“Put differently, we almost doubled the size of our entire business, of all of our revenues generated across the government and commercial sectors, in the span of only twelve months.”
“The significance of this accomplishment, the magnitude of this feat against not insignificant headwinds, may be lost on some.”
“We stand on the walls, sentinels of the inner sanctum, against the assault of AI slop. The Ontology is based firmly in reality—there is, here, a dialectic between ground truth, tribal knowledge, and enhancements.”
“With regard to the Wittgenstein quote above, we suggest an addendum for AI: One must actually expose reality, not merely appear to do so.”
“The institutions that we serve, representing the durable, loadbearing infrastructure of our society, grasp this. They demand nothing less; they know society can afford nothing less. For over twenty years, and across five administrations of both political parties, Palantir’s platform has enabled programs that have delivered results for people all over the United States and around the world.”
“We achieved this staggering growth with a hiring discipline that is too rare in the software industry today. This quarter, our revenue per employee rose to $1.5 million on an annualized basis. In the United States, that figure was $1.6 million.”
“These numbers take even greater significance in light of a sales headcount that is smaller now than it was even two years ago. And yet, Palantir is now literally one of the most impactful companies on the planet.”
“There seems to be a rotation amongst AI model companies who engage in an intensely competitive race in which we have seen token costs suffer a thousandfold decline over just a few years and where winners and losers swap places every six months.”
“Our path has been different, building a juggernaut of a business that is delivering results to our partners in the world as it is today. We are in a category of our own.”
II.
“While some within the industry are spending their way to a version or likeness of growth, we have built the platforms that are delivering record and accelerating levels of profit. We generated a total of $871 million in profit in the first quarter of the year, more than four times greater than the same period the year before.”
“It is worth reiterating. Our quarterly profit—the largest in our company’s twenty-three-year history—has more than quadrupled in only twelve months.”
“These are not incremental or marginal advances. These are signs of a phase shift, even sublimation, to borrow the concept from physics.”
“Our record levels of revenue and profit are the direct results of the revolutionary way we built this business, which is unlike anything we have seen in corporate America.”
“Indeed, we generated nearly as much in profit in the first quarter of the year as we did in revenue only twelve months ago.”
“What business in the world, at this scale, has ever accomplished anything of the sort?”
III.
“The United States remains the center, the constant core, of our business. And that business is erupting.”
“We generated $1.3 billion in the United States alone last quarter, representing a 104% increase over the same period the prior year.”
“To be clear, our U.S. business more than doubled in twelve months.
“The growth rate of many businesses tends to slow down, to ease, as they scale within their markets……………Ours has not.”
