Palantir's quarterly revenue climbed to $1.63 billion, marking an 85 percent increase year over year, according to reports from theregister.com.
The software firm's US government spending reached $687 million for the quarter ended March 31. This represents an 84 percent rise compared to the same period last year and a 20 percent jump from the previous quarter.
Much of this growth is tied to the expansion of the Maven targeting system used by the Department of Defense. The US military has doubled its usage of the system within the last four months.
Defense demand drives growth
Palantir CTO Shyam Sankar told investors during the company's first quarter 2026 earnings call that the Maven system met its moment during recent real-world events.
“When the stakes are highest, when failure is measured in lives and readiness. This is where we are positioned,” Sankar said.
Sankar noted that the demand from the defense industrial base has become so intense that the company has diverted resources from its commercial business to sustain production and support.
CEO and cofounder Alex Karp addressed the company's role in military operations, including the ongoing conflict with Iran. He stated that Palantir prioritizes US national security above all other variables, regardless of whether the work is popular.
“We 100 percent prioritize this nation’s security over any other variable,” Karp said. He added that he tells commercial clients that while the company is 'highly monogamous' in its work, US national security is the only priority that sits above them.
Karp acknowledged that the company faces significant criticism. He noted that while nine-tenths of the world loves the company, one-tenth of the world 'professionally hates us.'
This friction stems from Palantir's involvement with government clients accused of war crimes, including lethal strikes and the undeclared war on Iran. The conflict has resulted in at least 13 American service members killed and over 300 wounded.
Despite the friction, the company highlighted major successes in its maritime operations. Palantir secured a $484 million deal with the US Navy and the Maritime Industrial Base using its ShipOS software.
The deployment has significantly reduced administrative timelines. According to the company, bill of material approval times dropped from 200 hours to just 15 seconds, while monthly material planning time shrank by 94 percent.
Palantir has increased its full-year revenue guidance to at least $7.65 billion. This estimate is $470 million higher than the projections provided at the end of the previous quarter.
