- Blowout quarter. Palantir reported Q2 2026 revenue of $1.935 billion, up 93% year-on-year and 19% sequentially, beating analyst expectations of $1.81 billion — the company’s fastest-ever annual growth rate.
- Stock reaction. Shares rose 29.45% on August 4 after the results, adding billions to the company’s market capitalisation and confirming the AI-software thesis the market had begun pricing in from late 2025.
- Guidance raised again. Full-year 2026 revenue guidance was lifted to $8.15–8.158 billion, implying roughly 80% year-on-year growth, while US commercial revenue alone is expected to exceed $3.42 billion, a 134% increase.
Palantir Technologies reported second-quarter 2026 revenue of $1.935 billion on August 3, marking a 93% year-on-year increase — the company’s highest-ever growth rate — and exceeding the $1.81 billion consensus by a significant margin. The stock rose 29.45% the following session, extending what has become one of the defining equity stories of the AI investment cycle: a defence and intelligence software firm that spent years generating scepticism about its path to commercial scale, now delivering growth rates associated with early-stage hypergrowth companies. The results were published August 3, and the market reaction on August 4 was immediate.
A Tale of Two Revenue Streams
The composition of the quarter underlined how thoroughly Palantir’s AI Platform (AIP) has penetrated both government and enterprise markets. US Commercial revenue reached $764 million, up 149% year-on-year and 28% sequentially — growth that would be notable for any software company at any scale. US Government revenue came in at $809 million, up 90% year-on-year, suggesting that the Pentagon and intelligence community are deepening their reliance on the company’s data-fusion and AI-decision platforms at a faster pace than even Palantir’s own models had assumed.
International markets told a more modest story: international commercial revenue grew 26% to $182 million, and international government revenue rose 42% to $181 million. Chief Revenue Officer Ryan Taylor described the results as “93% year-over-year revenue growth, the highest ever,” with the US business growing 115%.
Deals and Customer Metrics
Palantir closed 220 contracts worth at least $1 million in the quarter, including 98 deals above $5 million and 70 above $10 million. US Commercial TCV bookings reached $2.132 billion, up 153% year-on-year. Net dollar retention stood at 157%, meaning existing customers are expanding their deployments at a rate that alone would produce a fast-growing company. US commercial customer count hit 653, up 35% year-on-year.
CEO Alex Karp, speaking on the earnings call, attributed the momentum to customers recognising they need to own their data and decision pipelines rather than outsource them to third-party model providers: “Customers understand they need to control their alpha.” CTO Shyam Sankar added that Palantir’s AIP platform won a competitive bake-off against a frontier AI lab, converting to a $10 million annual contract — a claim that, if representative, suggests the company is displacing AI inference providers in high-value enterprise contexts.
The Broader AI Earnings Picture
Palantir’s quarter adds to an already striking earnings season for AI-exposed software and infrastructure businesses. As reported this week, Alphabet, Amazon, and Microsoft collectively added $1.5 trillion in market capitalisation after AI cloud earnings justified their combined capital expenditure programmes. Palantir occupies a different part of the stack — closer to the decision layer than the compute layer — and its results confirm that enterprise willingness to pay for AI-powered workflows extends well beyond infrastructure spending and into operational software.
Full-year adjusted operating income guidance was raised to $4.889–4.897 billion, with adjusted free cash flow expected between $4.5 billion and $4.7 billion. Total remaining deal value stands at $13.1 billion, up 83% year-on-year — a backlog that provides visibility into revenue well into 2027 and suggests the current growth rate has durable underpinnings rather than relying on a single large contract.