By Heather Somerville

Palantir Technologies soared to record quarterly revenue and profit in earnings reported on Monday, boosted by strong U.S. military demand and a rapidly growing business selling data-crunching software to American corporations.

The Denver-based data analytics company said it had $1.63 billion in sales for the first three months of this year, a year-over-year gain of 85%, beating analysts' expectations. The combination of Palantir's rising profile as a major competitor in artificial intelligence, the inroads it has paved in Washington, and soaring demand from commercial customers have put the company on an earnings hot streak.

The company's first-quarter net income totaled $876 million, roughly tripling from the same period last year and beating analysts' expectations.

Palantir stock rose about 1% in after-hours trading, even as U.S. markets largely sank amid an escalation of fighting in the Middle East. Its stock is up 18% from a year ago, but it sits well below its peak late last year.

Palantir sells software to centralize, manage and analyze large amounts of data, helping government agencies and private companies derive insights from disparate databases. It has become an integral part of the U.S. Defense Department's war-planning, targeting and back-office functions. The military deployed Maven Smart System, a command-and-control system that uses Palantir's software, in the Venezuela raid in January and the war with Iran.

The Pentagon also announced on Friday agreements to use models from eight different AI companies in classified settings, which could expand the scope and capabilities of Maven. These models provide alternatives to Anthropic's Claude, which has been used with Maven but was blacklisted by the Pentagon earlier this year in a contracting dispute that is now playing out in court.

Palantir also recently announced a $300 million deal with the Agriculture Department and a five-year, $1 billion agreement with the Department of Homeland Security, further embedding the company in the Trump administration's immigration-enforcement efforts.

Write to Heather Somerville at heather.somerville@wsj.com

(END) Dow Jones Newswires

May 04, 2026 16:32 ET (20:32 GMT)

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