Key points
- Palantir (PLTR) Q2 revenue rose 93% to $1.94B against a $1.81B consensus, and adjusted EPS was $0.41 against $0.35.
- Full-year revenue guidance went up about $500M to $8.15B, and the adjusted operating profit guide to $4.89B.
- Shares were up more than 8% and climbing in early after-hours trading, near $138, still about a third below the November 2025 high of $207.52.
Palantir Technologies (PLTR) reported second quarter revenue of $1.935 billion after the close on Monday, up 93% from a year earlier and 19% from the first quarter. Analysts expected $1.81 billion.
Adjusted earnings per share came to $0.41, against a consensus near $0.35. GAAP diluted earnings per share were also $0.41. Adjusted EBITDA was $1.203 billion, above the $1.09 billion analysts had modeled.
Palantir raised full year 2026 revenue guidance to between $8.150 billion and $8.158 billion, from the $7.650 billion to $7.662 billion it gave in May. Adjusted income from operations guidance moved to $4.889 billion to $4.897 billion, from $4.440 billion to $4.452 billion.
PLTR closed the regular session at $125.89, up 2.3% on volume of 57.2 million shares against a 30-day average of 36.4 million. It was up more than 8% in early after-hours trading and still climbing, at $138.21 as of 4:28 p.m. Eastern.
"Demand for AI sovereignty has now been unleashed," said Alex Karp, co-founder and chief executive officer of Palantir. He called the quarter "otherworldly" and said customers "trust us to provide them with maximal control over their operations, data, and decisions."
Governments have spent the year standing up their own AI programs. China launched a 29-nation World AI Cooperation Organization in July, and the U.S. government is still Palantir's single largest revenue line at $809 million for the quarter.
The commercial business is closing on the government business
U.S. revenue was $1.573 billion, up 115% year over year. Within it, U.S. commercial revenue grew 149% to $764 million and U.S. government revenue grew 90% to $809 million. The gap between the two is $45 million, down from $92 million in the first quarter.
Palantir closed $2.132 billion of U.S. commercial total contract value during the quarter, up 153% and a company record. That figure is larger than the company's total revenue for the period. U.S. commercial remaining deal value ended at $6.238 billion, up 124%.
The company closed 220 deals worth at least $1 million, 98 worth at least $5 million and 73 worth at least $10 million. The first quarter counts were 206, 72 and 47.
| Metric | Q2 2026 | Q2 2025 |
|---|---|---|
| Revenue | $1.935B | $1.004B |
| Income from operations | $912M | $269M |
| Adjusted income from operations | $1.194B | $464M |
| Adjusted operating margin | 62% | 46% |
| Net income to common | $1.062B | $327M |
| Diluted EPS | $0.41 | $0.13 |
| Adjusted free cash flow | $1.220B | $569M |
Net income attributable to common stockholders passed $1 billion in a quarter for the first time. It was $870.5 million in the first quarter and $326.7 million in the second quarter of 2025. Revenue for this quarter alone, $1.935 billion, was more than the $1.888 billion Palantir booked across the entire first half of 2025.
Cash, cash equivalents and short-term U.S. Treasury securities ended the quarter at $9.2 billion, against $8.0 billion three months earlier. Stock-based compensation was $265.2 million, up from $160.0 million a year ago, which works out to 13.7% of revenue against 15.9%.
What the raised guidance says about the second half
For the third quarter Palantir guided to revenue of $2.160 billion to $2.164 billion, about 12% above what it just reported, and adjusted income from operations of $1.292 billion to $1.296 billion.
| FY 2026 guidance | August 3 | May 4 |
|---|---|---|
| Revenue | $8.150B to $8.158B | $7.650B to $7.662B |
| U.S. commercial revenue | above $3.424B | above $3.224B |
| Adjusted income from operations | $4.889B to $4.897B | $4.440B to $4.452B |
| Adjusted free cash flow | $4.5B to $4.7B | $4.2B to $4.4B |
The company put its Rule of 40 score at 155%. The measure adds a company's year-over-year revenue growth rate to its adjusted operating margin. In the first quarter release Karp said Palantir had "shattered the metric" at 145%, "a feat matched only by other fellow AI infrastructure companies: NVIDIA, Micron and SK hynix." Micron (MU) and SK Hynix (SKHY) have both fallen hard since late June as the pace of memory contract price increases slowed.
PLTR set its high of $207.52 on November 3, 2025. It fell to a 52-week low of $106.37 on June 25 during a broad first-half repricing across AI stocks. Monday's close is 39% below that high, and the after-hours price is about a third below it. The stock carries a market value near $302 billion and trades at 138 times trailing earnings.
The earnings call begins at 5 p.m. Eastern. "The sovereign AI revolution makes us very optimistic about the future," Karp said.
Sources
- Palantir Technologies second quarter 2026 earnings release, Exhibit 99.1 to Form 8-K filed with the SEC on August 3, 2026.
- Palantir Technologies first quarter 2026 earnings release, Exhibit 99.1 to Form 8-K filed May 4, 2026, for the prior guidance and the Rule of 40 quote.
- Consensus estimates of $1.81 billion in revenue, $0.35 in adjusted EPS and $1.09 billion in adjusted EBITDA as reported ahead of the release.
- Price, volume, market capitalization and 52-week range from exchange records through 4:28 p.m. Eastern, August 3, 2026.
