Markets PLTR +0.43% AUG 06, 2026

Palantir Q2 revenue jumps 93% to $1.94B, PLTR rockets 29.5% on 'otherworldly' quarter

U.S. commercial revenue surged 149% and Palantir raised full-year guidance to $8.15B–$8.16B, sending shares to their second-largest one-day gain on record.

BY HENLEY MARRAST · MARKETS DESK

Palantir closed up 29.5% on Tuesday, its second-largest single-session gain ever, eclipsed only by the 30.8% move on February 6, 2024. The catalyst was a Q2 print that reset the terms of the AI-infrastructure debate: $1.94 billion in revenue, up 93% year over year, against an LSEG consensus of $1.80 billion.

The setup mattered. PLTR had entered the print down roughly 30% year-to-date, and the tape was pricing a company whose valuation had detached from the fundamentals. That valuation now has fundamentals to catch.

Adjusted EPS came in at $0.41 versus a $0.35 consensus. GAAP net income hit $1.07 billion, or $0.41 per share, against $329 million and $0.13 a year earlier. Adjusted free cash flow of $1.22 billion cleared the Street’s $1 billion mark. The Rule of 40 score, that composite of growth plus margin that software investors treat as a proxy for durability, printed at 155%.

The composition is what changes the story. U.S. commercial revenue surged 149% to $764 million, with remaining U.S. commercial deal value more than doubling to $6.24 billion, a backlog figure that reframes Palantir as something other than a government contractor with a software wrapper. U.S. government revenue still grew 90% to $809 million, helped by Maven Smart System’s earlier promotion to a Pentagon program of record. Chief Revenue Officer Ryan Taylor told analysts the quarter closed 220 deals worth $1 million or more, including 73 above $10 million.

CEO Alex Karp, whose shareholder letters have always read as strategic positioning, framed it in structural terms: “demand for AI sovereignty has now been unleashed.” On the call he was blunter: “Forget consensus. To my knowledge, no business at our scale has even grown half this much.”

Management raised full-year 2026 revenue guidance to $8.150–$8.158 billion, up from the $7.182–$7.198 billion range issued at the start of the year, per Fortune. U.S. commercial full-year guidance moved to more than $3.424 billion from $3.22 billion. Q3 revenue is guided to $2.160–$2.164 billion.

D.A. Davidson’s Gil Luria carries a Buy rating and a $175 price target, pointing to Palantir’s model-orchestration layer as the structural moat. The read-through: sovereign AI has stopped being a slide and started being a line item.

Sources

About the author

Henley Marrast

MARKETS DESK

Henley Marrast covers AI-equity flow, accelerator demand, and earnings prints for AI Sheet Report. She leads coverage of the public AI complex from the New York markets desk, with a focus on the daily tape and quarterly results. She has been writing about technology markets for several years.