Palantir Q1 2026 results: revenue +85% YoY to $1.63B, operating margin expands to 46.2%

Palantir reported Q1 2026 revenue of $1.63B, up 84.7% from $884M in Q1 2025. Operating income came in at $754M, up 328% YoY, with operating margin expanding roughly 26 percentage points to 46.2%. EPS was $0.33 basic vs the $0.28 street estimate.

The gross margin number is the detail worth sitting with: 86.8% vs 80.4% a year ago. Cost of revenue grew only 24.8% while total revenue nearly doubled. That kind of spread suggests the incremental revenue is landing at very high flow-through, consistent with a software model where fixed costs are largely already absorbed.

The obvious risk flagged in the filing is valuation. At 85% growth and 46% operating margins, the market is pricing in sustained hypergrowth. The filing explicitly notes that sustaining this pace becomes harder as the revenue base scales, and that government contract concentration remains a structural risk even with commercial growth accelerating.