Markets PLTR -0.70% AUG 07, 2026

Palantir clears $1.94B on 93% growth, stock rips 29.5% as 'AI sovereignty' guidance lands

Q2 revenue beat consensus by ~$140M, U.S. commercial jumped 149% to $764M, and management raised full-year guidance to $8.15B–$8.158B.

BY HENLEY MARRAST · MARKETS DESK

Palantir Technologies posted $1.94 billion in Q2 2026 revenue, roughly $140 million above the $1.80 billion LSEG consensus, and shares jumped 29.5% on Tuesday, the second-largest single-session gain on record for PLTR. Revenue grew 93% year-over-year from about $1 billion in the year-ago quarter, an acceleration rare at this scale and one the company is now explicitly framing as a geopolitical rather than a software story.

The composition is what changed the tape. U.S. commercial revenue reached $764 million, up 149%; U.S. government came in at $809 million, up 90%; total U.S. revenue hit $1.57 billion, up 115%. GAAP net income was $1.07 billion versus $329 million a year earlier, GAAP operating income was $912 million on a 47% GAAP operating margin, and adjusted operating margin ran at 62%. The company’s Rule of 40 score printed at 155%. Adjusted EPS of 41 cents cleared the 35-cent consensus.

Management raised full-year 2026 guidance for the second time this year, to $8.15 billion–$8.158 billion, up from the $7.65 billion–$7.66 billion range set at Q1. U.S. commercial full-year guidance now sits above $3.424 billion, growth of at least 134%, which Palantir called the largest full-year commercial raise in its history. Adjusted free cash flow guidance landed at $4.50 billion–$4.70 billion. The company closed 220 deals of at least $1 million, 98 at $5 million-plus, and 73 above $10 million; U.S. commercial TCV was $2.13 billion, up 153%, with remaining deal value of $6.24 billion, roughly doubled.

CEO Alex Karp went straight to the frame. “This quarter was otherworldly.” “Demand for AI sovereignty has now been unleashed.” In the shareholder letter, he wrote that customers “have declined to become vassal states of the language labs.” On CNBC, he told Seema Mody the trajectory “looks like this is going to go on for at least another 18 months.” Citi analysts said the results “further weaken the bear case around rising AI competition.”

PLTR had entered Monday down 29% year-to-date. The bear case didn’t so much lose an argument as get repriced against a company now positioning itself as the neutral infrastructure layer for institutions that don’t want to rent their cognition from three California labs.

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.