Palantir Technologies Q2 Earnings Call Highlights

Key Points

• Palantir’s Q2 revenue surged 93% year over year to $1.935 billion, led by U.S. revenue growth of 115% and particularly strong U.S. commercial revenue growth of 149%. U.S. commercial bookings reached $2.132 billion, while the customer count rose to 653.
• Government revenue increased 79% year over year to $990 million, supported by expanding adoption of the Maven platform within the U.S. Department of Defense and a growing developer base of more than 25,000 users.
• Profitability and cash generation remained strong, with a 63% adjusted free-cash-flow margin and $1.22 billion in adjusted free cash flow. Palantir raised its full-year 2026 guidance to $8.15 billion-$8.158 billion in revenue and $4.5 billion-$4.7 billion in adjusted free cash flow, citing demand for customer-controlled AI.

Palantir Technologies NASDAQ: PLTR reported second-quarter 2026 revenue growth of 93% year over year to $1.935 billion, driven by accelerating demand in its U.S. commercial and government businesses. The company also raised its full-year revenue, operating-income and free-cash-flow outlooks.

Chief Revenue Officer and Chief Legal Officer Ryan Taylor said the quarter’s results reflected customer demand for what Palantir describes as “AI sovereignty,” or the ability for enterprises to retain control over their data, logic, workflows, security and AI model outputs.

“The story of this quarter is, once again, our U.S. business,” Taylor said. U.S. revenue rose 115% year over year and 23% sequentially to $1.573 billion, accounting for more than 81% of total company revenue.

U.S. Commercial Growth Accelerates

U.S. commercial revenue increased 149% from a year earlier and 28% sequentially to $764 million. Palantir closed $2.132 billion in U.S. commercial total contract value, or TCV, bookings during the quarter, up 153% year over year and 81% sequentially.

The company said it closed 220 deals worth at least $1 million, including 98 deals worth at least $5 million and 73 deals worth at least $10 million.

• A multinational technology company expanded from an initial engagement at one operating company to a three-year deal valued at nearly $370 million.
• A global asset manager signed a three-year, $35 million deal covering asset-management automation and investment-lifecycle intelligence.
• A nonprofit health system converted a pilot into a three-year partnership with $37 million in TCV.
• A global software and services company signed an initial $15 million, five-month agreement after an Agent Camp event.

Palantir’s U.S. commercial customer count reached 653, up 35% year over year and 6% sequentially. Total remaining deal value in the U.S. commercial business rose 124% year over year to an undisclosed amount, while total company remaining deal value ended the quarter at $13.1 billion, up 83% from a year earlier.

Government Revenue and Maven Platform Momentum

Government revenue grew 79% year over year and 15% sequentially to $990 million. U.S. government revenue increased 90% year over year and 18% sequentially to $809 million, while international government revenue rose 42% to $181 million.

Chief Technology Officer Shyam Sankar said Palantir’s Maven platform continued to expand within the U.S. Department of Defense, which company executives referred to as the Department of War. He said a government program of record selected Maven as the platform for operating its program, citing the platform’s data standards, ontology, developer tools and security capabilities.

Sankar said more than 25,000 builders, including service members, civilians, contractors and companies, are developing agents and applications on Maven. He also said Palantir’s trailing 12-month revenue from the department remained below 25 basis points of the Pentagon’s budget.

In addition, Sankar highlighted Palantir’s American Tech Fellowship program, which has produced more than 1,000 graduates. He described an application created by a manufacturing worker at submarine parts producer Tabet that reduced production-planning time from 30 to 40 days to less than one day.

Profitability, Cash Flow and Outlook

Chief Financial Officer David Glazer said Palantir generated $1.22 billion in adjusted free cash flow, representing a 63% margin and 115% growth year over year. Cash from operations totaled $1.216 billion.

GAAP operating income was $912 million, or a 47% margin, while GAAP net income was $1.062 billion, or a 55% margin. GAAP and adjusted earnings per share were both $0.41. Glazer said unrealized gains on SpaceX holdings added $0.03 to GAAP EPS and $0.02 to adjusted EPS.

Adjusted operating income was $1.194 billion, for a 62% margin. The company’s Rule of 40 score, combining revenue growth and adjusted operating margin, reached 155%, up 10 points from the prior quarter.

Palantir ended the quarter with $9.2 billion in cash equivalents and short-term U.S. Treasury securities. Net dollar retention was 157%, up 700 basis points sequentially.

For the third quarter, the company expects revenue between $2.16 billion and $2.164 billion and adjusted income from operations between $1.292 billion and $1.296 billion.

For full-year 2026, Palantir raised guidance to:

• Revenue of $8.15 billion to $8.158 billion, representing 82% year-over-year growth at the midpoint.
• U.S. commercial revenue of more than $3.424 billion, representing at least 134% growth.
• Adjusted income from operations of $4.889 billion to $4.897 billion.
• Adjusted free cash flow of $4.5 billion to $4.7 billion.

Focus on Customer-Controlled AI

During the question-and-answer session, Chief Executive Officer Alex Karp said enterprises increasingly recognize the importance of maintaining control over the data, metadata, reasoning traces and other information generated through AI deployments. He said customers are seeking greater flexibility to use different models rather than becoming dependent on a single provider.

Sankar said Palantir’s platform enables customers to evaluate models against business-specific benchmarks and to balance cost, performance and latency across workflows. He said the company found that a standard Nemotron Ultra model outperformed frontier models on five production tasks within 24 hours of deployment, underscoring Palantir’s view that general benchmarks may not reflect customer-specific operational requirements.

Karp said Palantir is seeking to sustain U.S. commercial growth at or above its current rate over the next 18 months, while expanding partnerships and technical capacity to meet demand.

About Palantir Technologies (NASDAQ:PLTR)

Palantir Technologies is a software company that develops data integration, analytics and operational decision-making platforms for government and commercial customers. Founded in 2003 by a team that included Alex Karp and Peter Thiel, Palantir has grown into a provider of enterprise-scale software designed to help organizations integrate disparate data sources, build analytic models and drive operational workflows. The company went public in 2020 and continues to position its products around large, complex data projects where security, provenance and real-time collaboration are important.

Palantir's product portfolio centers on a small number of core platforms.

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