Palantir Posts Q2 Blowout: Revenue Surges 93% to $1.94B, US Commercial Up 149%, Adjusted EPS $0.41 Crushes $0.35 Estimate

Palantir Technologies reported Q2 2026 earnings Monday after the close that crushed Wall Street estimates. Revenue climbed 93% year-over-year to $1.94 billion versus the $1.81 billion consensus, the company's highest growth rate ever. Adjusted EPS of $0.41 beat the $0.35 estimate by 17%, marking the company's ninth consecutive earnings beat. U.S. commercial revenue surged 149% year-over-year to $764 million and 28% sequentially, while total U.S. business now comprises 81% of total revenue and grew 115% year-over-year and 23% sequentially. The company raised full-year 2026 revenue guidance to $8.15–$8.16 billion from the prior $7.65–$7.66 billion, representing 82% year-over-year growth. U.S. commercial revenue is now expected to exceed $3.42 billion, up from prior guidance of $3.22 billion and representing at least 134% growth. GAAP operating income reached $912 million at a 47% margin, while adjusted operating income hit $1.19 billion at a 62% margin. The company's Rule of 40 score reached 155%, underscoring a rare combination of hypergrowth and deep profitability. Total contract value of $3.37 billion rose 49% year-over-year, and remaining U.S. commercial deal value more than doubled to $6.24 billion. Palantir reported net income of $1.07 billion, or 41 cents per share, compared to $329 million or 13 cents per share in the year-ago quarter. Chief Revenue Officer Ryan Taylor said the abrupt market shift in large language models that management has been warning about for years is now here. For Q3 2026, Palantir expects revenue of $2.160–$2.164 billion. The stock surged 12% after the release despite being down 29% year-to-date heading into the report.