Palantir’s results topped Wall Street expectations, and the organization also issued better-than-expected guidance

Revenue increased 85%, the company’s fastest growth since its public economy debut in 2020.In the first quarter,

The firm reported revenue growth to U.S. government customers of 84%.

Palantir reported first-quarter results on Monday that sailed past analysts’ expectations, and also issued guidance that topped estimates.

Here’s how the firm did compared to analyst estimates as compiled by LSEG:

Revenue: $1.63 billion vs. $1.54 billion expected

Palantir’s revenue grew about 85% in the quarter, marking the fastest boost in sales since at least 2020, the year the organization went public through a direct listing.

Net income roughly quadrupled to , according to a statement$870.5 million, or 34 cents per share, from $214 million, or 8 cents per share, a year earlier. Adjusted net income excludes impact from stock-based compensation and income taxes.

Palantir, which has seen its economy value soar in the past few years, also lifted its full-year guidance. The firm now anticipates $4.2 billion to $4.4 billion in adjusted free cash flow, above StreetAccount’s $4.05 billion consensus. In February, the firm stated it was looking for adjusted free cash flow between $3.925 billion and $4.125 billion.

“Our financial results now demonstrate a level of strength that dwarfs the performance of essentially every software business in history at this scale,” Palantir CEO Alex Karp wrote in a letter to shareholders. Revenue per employee reached $1.5 million on an annual basis, Karp wrote. This also touches on aspects of investors.

Management called for $1.8 billion in second-quarter revenue, above the $1.68 billion consensus among analysts surveyed by LSEG.

The enterprise sees $7.65 billion to $7.66 billion in 2026 revenue, an annual jump of 71% and higher than the $7.27 billion LSEG consensus. In February, the organization guided to between $7.182 billion and $7.198 billion in full-year revenue.

Karp told CNBC’s Seema Mody he expects the U.S. business, across government and commercial, to double again in 2027.

Palantir is best known for providing software, services and artificial intelligence tools to the U.S. government for military operations and defense.

Revenue to domestic government agencies climbed 84% in the first quarter to $687 million, accelerating from 66% growth in the fourth quarter. Last year Palantir revealed a U.S. Army contract worth up to $10 billion over 10 years.

In an interview with CNBC in March, Karp remarked his company’s AI is giving the U.S. and its allies an edge in the escalating conflict in Iran and across the Middle East.

“What makes America special right now is our lethal capabilities, our ability to fight war,” Karp noted at Palantir’s AIPCon 9 in Maryland. He added that another major advantage is that “the AI revolution is uniquely American.”

The organization prioritizes U.S. warfighters above all else, Karp stated on a Monday conference call with analysts.

“When we believe, or know because of our proximity, that the U.S. war fighter is in danger, we put the whole enterprise against it,” Karp remarked. “And it is not always the way in which one should do this, but it is how we do it.”

Commercial revenue from U.S. clients totaled $595 million in the quarter, up 133% from a year ago but below StreetAccount’s consensus of $605 million. During the quarter, Palantir declared deals with Airbus, Bain, GE Aerospace and Stellantis.

Palantir stated it had 1,007 commercial customers for the trailing 12 months ended March 31, up 31% from a year earlier. At the end of March, it counted $4.45 billion in remaining performance obligations, a measure of revenue that has yet to be recognized, up from $1.9 billion last year.

While Palantir’s stock is up about 23-fold since the end of 2022, it’s dropped 18% this year. The slide has come alongside a broader retreat in software stocks due to fears that AI models might hurt growth and that models like those from Anthropic and OpenAI would disrupt older businesses.

Karp sought to differentiate Palantir from the model developers.

“There seems to be a rotation amongst AI model companies who engage in an intensely competitive race in which we have seen token costs suffer a thousandfold decline over just a few years and where winners and losers swap places every six months,” Karp wrote in Palantir’s shareholder letter. “Our path has been different, building a juggernaut of a business that is delivering results to our partners in the international community as it is today.”

Palantir uses models from a variety of providers, but is still unable to keep up with U.S. demand, Karp commented on Monday.

— CNBC’s Seema Mody contributed to this report.

WATCH: Palantir posts quarterly beat and raises guidance