Palantir Q2 2026 earnings: revenue jumps 93% on AI demand, guidance raised
Palantir beat Q2 2026 profit and revenue estimates as U.S. commercial demand surged, and it raised full-year revenue and cash-flow guidance.
| Q2 2026 | Reported | Expected | Surprise |
|---|---|---|---|
| EPS | $0.41 | $0.35 | +15.7% |
| Revenue | $1.94B | $1.84B | +5.1% |
Key takeaways
- Palantir earned 41 cents per share on $1.94 billion in revenue, both well above what Wall Street analysts had penciled in (about 35 cents per share and $1.84 billion), marking another quarter of beating expectations.
- Total revenue grew 93% from a year earlier, an unusually fast growth rate for a company Palantir’s size, driven by surging demand for its AI software platforms.
- U.S. commercial (non-government) revenue was the standout, jumping 149% year-over-year to $764 million, as more American businesses adopted Palantir’s AI tools.
- The U.S. government business, historically Palantir’s core customer base, also grew strongly, up 90% to $809 million, showing the company isn’t relying on just one type of customer for growth.
- The verified TTM margins show a highly efficient business: an 84% gross margin means Palantir keeps most of what it charges after direct costs, while a roughly 38% operating margin and 44% net margin indicate the company converts a large share of that revenue into actual profit rather than spending it all on growth.
- Return on equity of about 32% suggests management is generating strong profit relative to shareholders’ invested capital, a sign of efficient use of the company’s growing cash pile.
- Palantir raised its full-year 2026 revenue guidance to roughly $8.15-$8.16 billion (about 82% annual growth) and lifted its U.S. commercial growth outlook to at least 134%, up from a prior forecast of at least 120%.
- The company also raised its full-year adjusted free cash flow guidance to $4.5-$4.7 billion, up from $4.2-$4.4 billion previously, pointing to more cash being generated from operations than earlier expected.
- For the current quarter, Palantir guided revenue of about $2.16 billion, which would extend the recent pace of growth if achieved.
- CEO Alex Karp described the quarter as “otherworldly,” pointing to the 149% U.S. commercial growth, 93% overall revenue growth, and a “Rule of 40” score (a common measure combining growth and profitability) of 155%, well above the 40 threshold typically seen as strong.
Q2 2026 in context
| Metric | Jun 2026 | Jun 2025 | Change |
|---|---|---|---|
| Revenue | $1.9B | $1.0B | +92.8% |
| Net income | $1.1B | $327M | +225.0% |
| Free cash flow | $1.2B | $532M | +126.0% |
| Diluted EPS | $0.41 | $0.13 | +215.4% |
| Gross margin | 84.7% | 80.8% | +3.9 pts |
| Operating margin | 47.1% | 26.8% | +20.3 pts |
| Net margin | 54.9% | 32.6% | +22.3 pts |
Figures for the quarter ended Jun 2026 and the quarter ended Jun 2025, as reported to the SEC.
How the stock took it
Palantir Technologies Inc closed at $123.06 on Jul 31, 2026, the last session before the report, and at $162.66 on Aug 4, 2026, the first session after it — +32.2% across the report.
| Earlier report | Close before | Close after | Change |
|---|---|---|---|
| May 5, 2026 | $146.03 | $133.79 | -8.4% |
| Nov 4, 2025 | $207.18 | $187.90 | -9.3% |
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Fundamentals
| Metric | Value | Period |
|---|---|---|
| Gross margin | 84.1% | Trailing 12 months |
| Operating margin | 38.1% | Trailing 12 months |
| Net profit margin | 43.7% | Trailing 12 months |
| Pretax margin | 44.5% | Trailing 12 months |
| EPS | $0.89 | Trailing 12 months |
| Revenue growth (YoY) | 67.7% | Trailing 12 months |
| EPS growth (YoY) | 287.8% | Trailing 12 months |
| Return on equity | 32.2% | Trailing 12 months |
Sources: company report · verified fundamentals · earnings call