Palantir Technologies
PLTR · NASDAQSoftware · Data Analytics & AI Platforms
Since the Report + 13.0%
Close on Report DayAug 3
$155.92▲ 29.0%Report-Day Move
- Market Cap(Today)
- ≈ $422 B
- 1Y Return(At Report)
- − 10%
- P/E($1.20 · Trailing 12M)
- 146.8
- PEG(next-year consensus)
- 3.70
U.S. commercial revenue grew 149% year over year, total revenue rose 93%, and full-year guidance moved higher — the stock leapt 29% on August 4, yet at roughly 61 times sales the price has already paid in advance for years of that growth.
Revenue (Q2)
$1.94B
▲ 93% YoY
U.S. Commercial Revenue
$764M
▲ 149% — Record
Adjusted EPS
$0.41
16% Above Expectation
Adjusted Operating Margin
62%
Rule of 40: 155
Adjusted Free Cash Flow
$1.22B
63% Margin
FY Revenue Guidance
$8.15B
Raised · 82% Growth
Quarterly Revenue ($ Billion)
1.00
1.18
1.41
1.63
1.94
$2.160–$2.164B
- Q2 25
- Q3 25
- Q4 25
- Q1 26
- Q2 26
- Q3 26E
- Annual Growth
- ▲ 93%$1.00B → $1.94B
- U.S. Commercial Share
- 39%$764M · ▲ 149% YoY
- International · Weakest
- $362M~19% of Total
Q3 2026 Company Guidance
- Revenue (Q3 26)2.160 – 2.164 billion
Midpoint $2.162 · Market Expectation $2.00Above Expectation ▲
- Adjusted Operating Income (Q3 26)1.292 – 1.296 billion
Midpoint $1.294 · roughly 60% marginHigh Margin Sustained ▲
- Revenue (FY 2026)8.150 – 8.158 billion
82% annual growth · from $7.182–$7.198 at the start of the yearRaised ▲
- Adjusted Operating Income (FY 2026)4.889 – 4.897 billion
Midpoint $4.893 · roughly 60% marginMargin Target Held ▲
- Adjusted Free Cash Flow (FY 2026)4.5 – 4.7 billion
Midpoint $4.6 · less than half of the target banked in the first halfSecond-Half Weighted
The blue band is the company's low–high range; its length shows how much room the company left itself. The black triangle and the line beneath it mark where the market expected, and the notch in the band is the range's midpoint. The triangle appears only where a market expectation is known. Axis is ±8.6% around the midpoint.
- Adjusted Free Cash Flow (Q2)
- $1.22B63% Margin
- Adjusted Operating Margin
- 62%Rule of 40: 155
- Share Count
- ▲ ~1.8% / yrStock-Based Comp Dilution
“Demand for AI sovereignty has now been unleashed. And Palantir is the only company that has demonstrated it can transform tokens into actual economic value.”
- Customer ownership of data and models
- Standing against parasitic software models
- Growth momentum for another 18 months
Summary
Palantir reported second-quarter 2026 revenue of $1.935 billion after the close on August 3, up 93% from a year earlier and ahead of the roughly $1.84 billion market expectation. Adjusted earnings came in at $0.41 per share, about 16% above expectations. The engine was the U.S. commercial business: revenue there reached $764 million, a 149% annual increase and the fastest growth that segment has ever posted. U.S. government revenue rose 90% to $809 million. GAAP net income cleared $1 billion for the first time at $1.062 billion, a 55% net margin, while adjusted operating income came to $1.194 billion at a 62% margin.
The stock jumped 29% the next day, August 4, coming within a hair of its best session ever. The size of that move had as much to do with where expectations sat as with the quarter itself. Heading into the print, PLTR was down over the prior twelve months and well below its $207.52 high, and part of the market had begun pricing in a slowdown. The company showed the opposite. Full-year revenue guidance was lifted to $8.150-$8.158 billion, or 82% annual growth, and U.S. commercial revenue guidance was raised to more than $3.424 billion, implying growth above 134%. Adjusted free cash flow guidance was set at $4.5-$4.7 billion.
We score the quarter itself 90 out of 100: revenue, earnings, margins, cash flow and guidance all landed above expectations, and growth accelerated rather than cooled. The caveat is not the quarter, it is the price. As of August 6 the shares trade at $155.92 for a market value of roughly $375 billion — about 61 times trailing sales and 135 times earnings. Those multiples assume today's pace persists for years; a single quarter of deceleration could hit the price far harder than it would hit the financials. Our valuation guide walks through what those multiples imply.
Full Review
ClaudeThe U.S. commercial business is driving growth.
U.S. commercial revenue reached $764 million in the quarter, up 149% from a year earlier and 28% from the previous quarter — the fastest rate that segment has ever recorded, and the single line item that changes the picture. The U.S. commercial customer count rose to 653, 35% higher than a year ago, so the growth is coming from a widening base as well as from existing customers spending more. Net dollar retention stood at 157%, meaning last year's cohort is spending roughly half again as much this year, and that figure improved by 700 basis points in a single quarter. Management ties the momentum to enterprise AI models moving from pilots into production. The fragile part sits in the same place: compounding 149% off a $764 million base is a very different exercise than sustaining it off a $3 billion base.
Profitability now travels with growth.
In software, growth and margin usually eat each other; this quarter did the reverse. Adjusted operating margin was 62% and adjusted gross margin 86%. The Rule of 40 score, which adds growth to operating margin, came in at 155 — nearly four times the 40 threshold the industry treats as healthy, and 10 points better than the prior quarter. Cash tells the same story: $1.216 billion from operations and $1.220 billion of adjusted free cash flow, both at 63% margins. The balance sheet holds $9.2 billion in cash and short-term Treasury securities with no debt burden. CFO Dave Glazer framed the quarter simply: GAAP net income, adjusted operating income and adjusted free cash flow each crossed the $1 billion mark in the same three months.
The contract book is growing faster than revenue.
In a software company, quarterly revenue describes the past while the contract book describes the future. Palantir booked $3.373 billion of total contract value in the quarter, up 49% year over year. U.S. commercial TCV came to $2.132 billion, up 153% from a year ago and 81% from the prior quarter. Remaining deal value not yet recognized as revenue climbed to $13.1 billion, up 83%, while contracted remaining performance obligations rose 103% to $4.9 billion. The company closed 220 deals worth more than $1 million, 98 above $5 million and 73 above $10 million. Every one of those lines is growing faster than reported revenue, which means visibility into the next several quarters is materially better than it was a year ago.
Valuation is the harder argument, not the quarter.
Palantir's contested point has long been price rather than performance. As of August 6 the stock changes hands at $155.92 for a market value near $375 billion — roughly 61 times trailing sales and 135 times earnings, with even the forward price-to-earnings ratio around 84. For context, those multiples demand years of sustained high growth even from a company that just grew 93%. The curious detail: despite the 29% jump on August 4, the shares are still down about 10% over twelve months and below their $207.52 peak. The market had marked expectations down through the first half of 2026, and this quarter took that discount back. From here the price carries the weight, and the question of what growth scenario the market capitalization already contains will be asked again every quarter.
Concentration sits in two places: the U.S. and government.
Of $1.935 billion in total revenue, $1.573 billion — roughly 81% — came from the United States, leaving international revenue at $362 million, about a fifth of the total. That is the weakest link in the story: Palantir has not yet come close to reproducing its U.S. momentum in Europe or Asia, and nearly all of the growth rests on a single geography. The second concentration is governmental: $809 million of U.S. government revenue is about 42% of the total. That business is high-margin and sticky, but it is exposed to budget cycles and political priorities, and a shift in defense or intelligence spending flows straight through to revenue. Share-based compensation lifting the share count by roughly 1.8% a year adds a small but continuous dilution to per-share value.
Strengths
4- U.S. commercial revenue grew 149% year over year — the segment's fastest rate ever — while its customer count rose 35% to 653.
- A Rule of 40 score of 155: growth plus operating margin at nearly four times the 40 threshold the industry treats as healthy.
- $1.22 billion of adjusted free cash flow at a 63% margin, with $9.2 billion of cash on a debt-free balance sheet — growth needs no outside funding.
- Full-year revenue guidance lifted to $8.150-$8.158 billion, with $13.1 billion of remaining deal value compounding faster than revenue.
Risks
5- At roughly 61 times sales and 135 times earnings, one quarter of deceleration could correct the price far more violently than the financials.
- About 81% of revenue comes from the United States; the $362 million international business remains the weakest link in the story.
- U.S. government work is roughly 42% of revenue — budget cycles and shifting political priorities flow straight through to the top line.
- Share-based compensation lifts the share count about 1.8% a year, a small but continuous dilution of per-share value.
- The 52-week range runs from $106.37 to $207.52 — a single headline can move this stock by double digits. Volatility belongs in any position-sizing decision here.
What to Watch
4- Q3 2026 results (~early November 2026): the company guides to $2.160-$2.164 billion in revenue — roughly 12% above the second quarter — and $1.292-$1.296 billion of adjusted operating income.
- Fiscal year ending December 31, 2026: revenue guidance of $8.150-$8.158 billion (82% annual growth) and U.S. commercial revenue above $3.424 billion. Those two figures are the yardstick for the rest of the year.
- Full-year cash target: adjusted free cash flow of $4.5-$4.7 billion — less than half of that was banked in the first half, leaving the second half heavily loaded.
- Analyst revisions: the average target across 32 analysts is $189.90, within an unusually wide $80-$255 band. Whether post-earnings revisions narrow that band is worth watching.
Upcoming Earnings
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