Palantir’s Karp declares "We’re on fire," touts AI momentum and defense wins

Investing.com -- Palantir Technologies Inc (NASDAQ:PLTR) CEO Alex Karp struck a confident and combative tone on the company’s first-quarter earnings call Monday, celebrating a surge in U.S. growth and expanding global adoption of its AI-driven platforms. “Palantir is on fire,” Karp said, pointing to 71% year-over-year U.S. commercial revenue growth as evidence of the company’s breakout moment.

Karp credited the performance to more than just product innovation, calling it “a combination of twenty years of investment and a massive cultural shift in the U.S.” He emphasized that the company’s momentum reflects its growing ability to serve the “most critical issues” faced by governments and large enterprises.

Palantir recently reached nameplate production capacity at the U.S. Army’s Titan program and has seen adoption accelerate across Department of Defense systems, NATO members, and Fortune 500 clients. “We are seeing rapid expansion and very significant demand for Maven, both in America and outside of America,” Karp said.

Central to Palantir’s strategy is its proprietary AIP platform, which enables customers to deploy AI agents that integrate deeply with their operational workflows. Karp claimed these agents offer “demonstrably more value than what you’re paying for,” driving stickiness and expansion across both commercial and government accounts.

When asked about budget pressures in Washington and potential Defense Department cuts, Karp welcomed scrutiny. “Palantir does exceptionally well when things are pen tested. We like pressure on the system. We need pressure on the system,” he said, arguing that downsizing ineffective programs benefits providers demonstrating clear, measurable impact.

Karp also addressed skepticism over the company’s past difficulties entering the corporate mainstream, saying, “We were the freak show… Now we have the full stack engaged with us inside government, outside government.” He emphasized a cultural shift among enterprise clients: “They buy the best product, they install the best product… and then you get the best ethics, the best execution.”

Despite continued headwinds in continental Europe, which Karp said “doesn’t quite get AI,” he stressed that 90% of Palantir’s revenue is now rooted in higher-growth markets. “If you look at the math in terms of where the action is… our business is growing 49%, ex-Continental Europe,” Karp said.

Looking ahead, he said the company is focused on deployment over hype. “We plan to have nose to the grindstone, focus on taking the best talent inside Palantir, managing them… and make sure our clients and our partners win in the way we’re winning.”

Palantir reported Q1 adjusted earnings per share of $0.13 on revenue of $884 million, topping expectations and prompting an upward revision in its 2025 outlook. “The rule of 83,” Karp said, referring to the company’s combined revenue growth and margin, “shows you the quality of your revenue and because it’s hard to attain.”

This article first appeared in Investing.com