Palantir Technologies reported $1.935 billion in second-quarter revenue on Monday, August 3, a 93% increase from a year earlier, and raised its full-year sales forecast to more than $8.15 billion. The clearest engine was its U.S. commercial business, where revenue rose 149% to $764 million.
The result shows that demand for Palantir's artificial intelligence software is still accelerating across both corporate and government customers. It also raises the bar for a company whose shares entered the report under pressure from concerns that the AI software trade had become too expensive.
Palantir earned 41 cents a share on an adjusted basis, compared with the 35 cents expected by analysts surveyed by LSEG, while revenue topped the $1.80 billion estimate, CNBC reported. The stock gained 12% in after-hours trading at CNBC's latest update, though extended-hours moves can change before the next regular session.
The numbers
The quarter ended June 30 produced growth across Palantir's two largest U.S. businesses, according to the company's earnings release filed with the Securities and Exchange Commission.
- Total revenue: $1.935 billion, up 93% from a year earlier and 19% from the first quarter.
- U.S. commercial revenue: $764 million, up 149% year over year and 28% quarter over quarter.
- U.S. government revenue: $809 million, up 90% year over year and 18% quarter over quarter.
- GAAP operating income: $912 million, equal to a 47% operating margin.
- GAAP net income attributable to common stockholders: $1.062 billion, or 41 cents per diluted share.
Palantir also said it closed 220 deals worth at least $1 million during the quarter, including 73 deals worth at least $10 million. Total contract value reached $3.373 billion, up 49% from a year earlier, while U.S. commercial total contract value rose 153% to $2.132 billion.
Why investors care
The commercial acceleration matters because Palantir has long been associated with government and military work. Its U.S. government business was still larger in the quarter, but the gap narrowed as companies adopted Palantir's software for operational decisions and AI-driven workflows.
The balance between those businesses also reduces the extent to which the growth story depends on a single customer type. Combined U.S. revenue reached $1.573 billion, up 115% from a year earlier and equal to more than four-fifths of companywide revenue.
Profitability rose alongside sales. Palantir reported a 47% GAAP operating margin and a 62% adjusted operating margin. The difference reflects exclusions that include stock-based compensation and related payroll taxes, so investors comparing Palantir with other software companies should distinguish the GAAP and adjusted figures.
The caveat
One strong quarter does not settle the valuation debate. CNBC reported that Palantir shares were down 29% for 2026 before the post-earnings reaction, reflecting broader concerns about high-priced AI software stocks and whether their growth rates can hold.
Contract metrics require care as well. Palantir says total contract value includes potential contract options and that many agreements can be terminated for convenience. That means the $3.373 billion booked in the quarter is not the same as revenue already earned, and not every dollar is guaranteed to appear on a future income statement.
The earnings are also unusually profitable in part because Palantir earned other income in addition to its core operating results. For investors, the cleaner test is whether revenue, operating income and cash generation continue to rise together as the company scales.
What to watch next
For the third quarter, Palantir expects revenue of $2.160 billion to $2.164 billion and adjusted operating income of $1.292 billion to $1.296 billion. At the midpoint, the revenue forecast would represent another sequential increase of roughly 12%.
For all of 2026, the company raised revenue guidance to $8.150 billion to $8.158 billion from its previous range of $7.650 billion to $7.662 billion. It also now expects more than $3.424 billion in U.S. commercial revenue and $4.5 billion to $4.7 billion in adjusted free cash flow.
The next question is not whether Palantir delivered a strong second quarter; the reported growth and guidance make that clear. The question is whether commercial demand can keep compounding fast enough to support expectations already embedded in the stock. This article is general market information, not personalized investment advice.
