Palantir Technologies (NASDAQ: PLTR) reported second-quarter 2026 revenue of $1.935 billion, a 93% increase year-over-year and a 19% sequential gain.
US revenue led the charge, reaching $1.573 billion, up 115% year-over-year and 23% sequentially, reflecting surging domestic demand for AI-driven software.
US commercial revenue hit $764 million, a 149% year-over-year increase, while US government revenue climbed 90% to $809 million.
International commercial revenue reached $182 million, up 26% year-over-year, with international government revenue adding $181 million, a 42% annual gain.
Palantir posted adjusted earnings of $0.41 per share, comfortably beating analyst forecasts of $0.34 per share for the quarter.
The company generated $1.22 billion in adjusted free cash flow, crossing the $1 billion threshold simultaneously in GAAP net income, adjusted free cash flow, and adjusted operating income.
Adjusted operating income reached $1.194 billion, representing a 62% adjusted operating margin, with an adjusted gross margin of 86% for the period.
Palantir ended the quarter with $9.2 billion in cash equivalents and short-term US Treasury securities, underscoring the company’s strengthening financial position.
The company closed a record 220 deals worth $1 million or more, including 98 deals over $5 million and 70 deals exceeding $10 million.
US commercial total contract value bookings surged 153% year-over-year to $2.132 billion, while total TCV bookings across all segments rose 49% to $3.373 billion.
Palantir achieved a record Rule of 40 score of 155%, a metric that combines revenue growth rate and profit margin to assess software company health.
For the third quarter of 2026, Palantir guided revenue of between $2.16 billion and $2.164 billion, with adjusted income from operations between $1.292 billion and $1.296 billion.
The company raised its full-year 2026 revenue outlook to a range of $8.15 billion to $8.158 billion, implying 82% year-over-year growth and marking its largest full-year guidance increase to date.
Full-year US commercial revenue is now expected to exceed $3.424 billion, representing at least 134% growth for the calendar year.
Full-year adjusted free cash flow is projected between $4.5 billion and $4.7 billion, with adjusted income from operations expected between $4.889 billion and $4.897 billion.
Shares responded sharply to the results, climbing 11.36% in after-hours trading to $139.92 after closing the regular session at $125.65.
