Palantir Q2 revenue hit $1.94 billion, beating Wall Street's $1.81 billion estimate.
U.S. commercial revenue jumped 149% to $764 million on enterprise AI demand.
Palantir raised full-year revenue guidance to $8.15 billion, implying 82% growth.

Palantir Technologies (PLTR) beat Wall Street on every headline figure in the second quarter and lifted its full-year outlook. Shares climbed more than 7% in after-hours trading on Monday.

The data analytics firm reported $1.94 billion in revenue, up 93% from a year earlier. Adjusted earnings reached 41 cents per share, above the roughly 35 cents analysts had modeled.

Palantir Stock (PLTR) Performance. Source: Yahoo Finance

Palantir Earnings Beat Every Major Estimate

Revenue landed well above the $1.81 billion consensus and the company’s own guidance of about $1.80 billion. Growth also accelerated from the 85% pace set in the first quarter.

Palantir reports Q2 ‘26 U.S. comm revenue growth of 149% Y/Y and revenue growth of 93% Y/Y; raises FY ’26 revenue guidance to 82% Y/Y growth and U.S. comm revenue guidance to 134% Y/Y, crushing consensus expectations.Q2 U.S. revenue grew 115% y/y and adjusted operating margin… pic.twitter.com/8Md19TjxPY
— Palantir (@PalantirTech) August 3, 2026

U.S. commercial customers did most of the work. That segment rose 149% year over year to $764 million. Government revenue gained 90% to $809 million, despite Democratic scrutiny of contracts earlier this summer.

Profitability moved in step. GAAP net income reached $1.06 billion, a 55% margin, while adjusted operating margin hit 62%. The company’s Rule of 40 score, which adds revenue growth to operating margin, climbed to 155%.

Deal flow expanded alongside it. Palantir closed 220 contracts worth at least $1 million and booked a record $2.13 billion in U.S. commercial total contract value, up 153%.

Remaining deal value in the same segment reached $6.24 billion, more than double the year-ago figure. That backlog gives management visibility into 2027 revenue.

Guidance Raise Points to Sovereign AI Demand

Management now expects full-year revenue between $8.150 billion and $8.158 billion, roughly 82% growth. The previous range topped out near $7.66 billion.

Adjusted operating profit guidance moved to about $4.89 billion, comfortably ahead of the $4.51 billion analysts had penciled in. Adjusted free cash flow is now guided to $4.5 billion to $4.7 billion.

Chief Executive Alex Karp framed the quarter around what he called demand for AI sovereignty, meaning customer control over their own data and decisions rather than reliance on outside models.

“Demand for AI sovereignty has now been unleashed. And Palantir is the only company that has demonstrated it can transform tokens into actual economic value. Our customers trust us to provide them with maximal control over their operations, data, and decisions,” Alex Karp, Co-Founder and Chief Executive Officer of Palantir Technologies, in the company’s earnings release.

Palantir Stock Still Trails Its 12-Month High

Shares closed regular trading at $125.65, up 2.10%, then jumped to $135.12 after the release. Options traders had priced an 11% swing in either direction.

Even after that move, the stock sits far below its 12-month high of $207.52. Palantir entered Monday down about 31% for the year, as investors questioned AI stock valuations across the sector.

Bulls argue the spending cycle is still early, a view echoed in the debate over AI capex that has split Wall Street since June.

Palantir guided third-quarter revenue to roughly $2.16 billion. Whether the guidance raise holds the stock above $135 depends on how quickly commercial bookings convert into recognized revenue.

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