Palantir lifts annual revenue forecast on robust US government demand

By Jaspreet Singh

May 4 (Reuters) - Palantir ‌Technologies raised its ​annual ​revenue forecast and beat estimates for quarterly results on Monday, a sign of growing demand for its data analytics software from the ‌U.S. government and commercial clients.

The rising adoption of artificial intelligence tools ⁠in modern warfare has boosted demand for software platforms developed by companies such as Palantir that ‌help defense departments analyze data ‌and make real-time targeting decisions.

Palantir's Maven AI system, a command-and-control software platform that analyzes battlefield data and identifies targets, is set to become an official ​program of record for the Pentagon, locking in long-term use across the U.S. military.

The company now expects fiscal 2026 revenue to be between $7.65 billion and $7.66 ⁠billion, compared with its prior expectations of $7.18 billion to $7.20 billion.

"The United States remains the center, the constant core, ​of our business. And that business is erupting," CEO Alex Karp said in a letter to shareholders on Monday.

Palantir's U.S. government ​segment sells data analytics and AI software to ‌defense and intelligence agencies, while its U.S. commercial business provides enterprise AI platforms that help corporations integrate data and automate operational ⁠decisions.

Revenue rose 85% to $1.63 billion for the first quarter ended March 31, exceeding LSEG-compiled analysts' average estimate of $1.54 billion.

Palantir said its revenue from U.S. commercial customers jumped 133% to $595 ⁠million, while revenue from U.S. government customers rose 84% to $687 million.

The company reported adjusted earnings per ​share of 33 cents in the first quarter, beating estimates of 28 cents.

Shares of the company were down 1.5% in extended trading. The stock has fallen around 18% this year.

Chief ‌Financial Officer David Glazer reiterated on a post-earnings call that the company's expenses are expected to ramp up in 2026 "as ‌we remain committed to investing in the product plan and the most elite technical ⁠talent."

Last month, Palantir secured a $300 million ‌contract with the U.S. ​Department of Agriculture.

The company forecast second-quarter revenue of $1.797 billion to $1.801 billion, above estimates of $1.68 billion.

(Reporting by Jaspreet Singh in Bengaluru; Editing by ‌Sriraj Kalluvila)

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