Palantir lifts 2026 outlook after Q2 surge

Palantir reported second-quarter 2026 revenue of approximately $1.935 billion, representing 93% year-over-year growth. The company generated net income of roughly $1.06–1.07 billion, translating to diluted earnings of $0.41 per share. Management highlighted a Rule of 40 score of 155%, reflecting the combination of growth and profitability. These figures indicated that quarterly performance exceeded prior market expectations.

Profitability metrics were also strong on an adjusted basis. Adjusted income from operations reached $1.194 billion, corresponding to a 62% margin. Cash from operations totaled $1.216 billion, while adjusted free cash flow came in at $1.220 billion. These results underscored the company’s ability to convert revenue growth into cash and operating leverage.

Growth in the United States was a central driver of the quarter. Total U.S. revenue reached $1.573 billion, up 115% year over year. U.S. commercial revenue climbed to $764 million, an increase of 149% compared with the same period a year earlier. U.S. government revenue totaled $809 million, up 90% year over year, reflecting continued demand from public-sector customers.

Deal activity was robust across customer segments. The company closed 220 deals worth at least $1 million during the quarter, including 73 deals of at least $10 million. Total contract value closed stood at $3.373 billion, up 49% year over year. Palantir also reported remaining U.S. commercial deal value of roughly $6.24 billion, indicating a significant pipeline of contracted work.

In response to the strong quarter, Palantir raised its full-year 2026 guidance. Revenue for 2026 is now expected to be in the range of $8.150 billion to $8.158 billion. The company lifted guidance for adjusted income from operations to approximately $4.889 billion to $4.897 billion. Adjusted free cash flow guidance was increased to a range of $4.5 billion to $4.7 billion.

For the third quarter of 2026, Palantir guided revenue to between $2.160 billion and $2.164 billion. Adjusted income from operations for the period is projected at $1.292 billion to $1.296 billion. Management characterized commercial demand as “otherworldly,” citing strong interest in its AI-driven offerings. The updated outlook signals expectations for continued rapid growth and high margins in the near term.

Equity markets responded positively to the earnings report and guidance increase. Palantir shares rose roughly 11–13% in after-hours trading following the release of the results. The combination of faster-than-expected revenue growth, strong profitability, and a higher full-year forecast contributed to the move. Investor attention centered on the acceleration in U.S. commercial revenue and the expanded deal pipeline as key supports for the company’s trajectory.