Palantir Blows Past Estimates With 93% Revenue Jump, Lifts Full-Year Guidance

Palantir Technologies posted second-quarter results Monday that cleared Wall Street's bar by a wide margin, and the company's own forward guidance widened the gap further.

According to a press release reviewed via BusinessWire, <cite index="21-1">Palantir reported second-quarter revenue of $1.94 billion, up 93% from a year earlier, and raised its full-year revenue guidance to between $8.15 billion and $8.16 billion, well above the $7.65 billion to $7.66 billion range the company had previously forecast.</cite> Analysts had been looking for $1.81 billion in revenue and adjusted earnings of 35 cents per share, according to CNBC. The actual print beat both.

The headline growth number was driven almost entirely by the U.S. commercial segment. <cite index="18-2">U.S. commercial revenue soared 149% year over year to $764 million as enterprises raced to deploy AI infrastructure.</cite> <cite index="21-2">U.S. government revenue grew 90% to $809 million.</cite> Put together, <cite index="21-3">total U.S. revenue reached $1.57 billion, a 115% increase from a year ago.</cite>

On the bottom line, <cite index="21-5">net income for the quarter was $1.06 billion, or 41 cents per diluted share; in the year-ago period, Palantir earned $326.7 million, or 13 cents per share.</cite> The company's adjusted metrics were similarly strong. <cite index="18-3">GAAP operating income reached $912 million at a 47% margin, while adjusted operating income hit $1.19 billion at a 62% margin, and the company's Rule of 40 score reached 155%.</cite>

Deal activity backed up the revenue line. <cite index="17-8">Palantir closed a record 220 deals worth $1 million or more, including 98 deals over $5 million and 70 deals over $10 million.</cite> <cite index="17-1">U.S. commercial total contract value bookings surged 153% year over year to $2.132 billion.</cite>

For the rest of the year, management raised every number it tracks. <cite index="18-7">For full-year 2026, the company raised revenue guidance to $8.150 to $8.158 billion, representing 82% year-over-year growth; U.S. commercial revenue guidance to in excess of $3.424 billion, at least 134% year-over-year growth; adjusted income from operations guidance to $4.889 to $4.897 billion; and adjusted free cash flow guidance to $4.5 to $4.7 billion.</cite> For Q3 alone, <cite index="18-6">Palantir expects revenue of $2.160 to $2.164 billion and adjusted income from operations of $1.292 to $1.296 billion.</cite>

CEO Alex Karp supplied the color traders have come to expect from him. In a statement reported by Quartz, he said the quarter was "otherworldly" and that <cite index="21-8">"Demand for AI sovereignty has now been unleashed."</cite> In a separate appearance on CNBC, <cite index="23-5">Karp said the strong growth "looks like this is going to go on for at least another 18 months."</cite> Forward guidance from a CEO who has a commercial interest in saying exactly that should be held at arm's length, but the contract value numbers at least give the claim some structural support.

The stock had been under pressure heading into the print. <cite index="23-2">Palantir shares had lost 29% this year amid broadening concerns that the AI software trade is running out of steam and growth could slow.</cite> <cite index="7-1">The stock surged 14% after the results dropped Monday evening.</cite>

One constraint worth watching: <cite index="17-9">Palantir's trailing 12-month revenue from the Department of Defense is still less than 25 basis points of the Pentagon's budget,</cite> which management framed as headroom but which also highlights how dependent near-term growth is on the commercial AI spending cycle continuing at its current pace. Karp's 18-month runway call is his projection. The contract backlog is the only number that doesn't require taking him at his word.

Sources cited:
- BusinessWire (Palantir Q2 2026 press release) (https://www.businesswire.com/news/home/20260802523449/en/Palantir-Reports-Q2-2026-U.S.-Comm-Revenue-Growth-of-149-YY-and-Revenue-Growth-of-93-YY-Raises-FY-2026-Revenue-Guidance-to-82-YY-Growth-and-U.S.-Comm-Revenue-Guidance-to-134-YY-Crushing-Consensus-Expectations)
- CNBC (https://www.cnbc.com/2026/08/03/palantir-pltr-earnings-q2-2026.html)
- Quartz (https://qz.com/palantir-q2-2026-earnings-revenue-guidance-080426)
- 24/7 Wall St. (https://247wallst.com/companies/pltr/earnings/)
- Charles Schwab Market Update (https://www.schwab.com/learn/story/stock-market-update-open)
- GuruFocus (Q2 2026 Earnings Call Highlights) (https://www.gurufocus.com/news/9000347/palantir-technologies-inc-pltr-q2-2026-earnings-call-highlights-record-93-revenue-growth-and-raised-guidance-signal-unprecedented-ai-demand)