Palantir Technologies’ shares were in focus after the company reported first-quarter results that exceeded Wall Street expectations and paired the beat with stronger-than-expected forward guidance.

According to CNBC’s report, Palantir posted adjusted earnings per share of 33 cents on revenue of $1.63 billion, both above analysts’ estimates compiled by LSEG. The company said revenue grew about 85% year over year, marking its fastest sales expansion since at least 2020.

Profitability also improved sharply. Net income roughly quadrupled to $870.5 million, or 34 cents per share, from $214 million, or 8 cents per share, a year earlier. Palantir highlighted operating leverage and pointed to improving efficiency metrics, including revenue per employee.

Management raised its full-year outlook as well. The company now expects 2026 revenue of about $7.65 billion to $7.66 billion, above consensus, and increased its adjusted free cash flow target range to $4.2 billion to $4.4 billion.

In the near term, Palantir guided for $1.8 billion in second-quarter revenue, topping the analyst consensus. The company’s U.S. government business continued to accelerate, with domestic government revenue rising 84% in the quarter to $687 million, underscoring demand for its software and AI tools across defense and other federal agencies.

For markets, the report adds to a broader earnings-season narrative: investors are rewarding companies that can show both AI-driven demand and tangible margin expansion, not just headline “AI” exposure. Traders will be watching whether Palantir can sustain rapid growth in U.S. commercial customer additions while converting remaining performance obligations into revenue and cash flow over coming quarters.

What to watch next: management commentary on deal pipelines, the pace of U.S. commercial revenue growth, and whether improved guidance translates into sustained stock performance amid wider volatility in software and AI-linked names.