- Revenue: $1.935 billion in Q2 2026, up 93% year-over-year and 19% sequentially.
- US Revenue: $1.573 billion, up 115% year-over-year and 23% sequentially.
- US Commercial Revenue: $764 million, up 149% year-over-year and 28% sequentially.
- US Government Revenue: $809 million, up 90% year-over-year and 18% sequentially.
- International Commercial Revenue: $182 million, up 26% year-over-year and 2% sequentially.
- International Government Revenue: $181 million, up 42% year-over-year and 5% sequentially.
- Adjusted Gross Margin: 86% for the quarter.
- Adjusted Operating Income: $1.194 billion, representing a 62% adjusted operating margin.
- GAAP Operating Income: $912 million, representing a 47% margin.
- GAAP Net Income: $1.062 billion, representing a 55% margin.
- GAAP Earnings Per Share: $0.41; adjusted earnings per share was $0.41.
- Adjusted Free Cash Flow: $1.22 billion, representing a 63% margin and 115% growth year-over-year.
- Cash Position: $9.2 billion in cash, cash equivalents, and short-term US treasury securities at quarter end.
- US Commercial TCV Bookings: $2.132 billion, up 153% year-over-year and 81% sequentially.
- Total Commercial TCV Bookings: $2.337 billion, up 118% year-over-year.
- Total Government TCV Bookings: $3.4 billion, up 49% year-over-year on a dollar-weighted duration basis.
- Net Dollar Retention: 157%, an increase of 700 basis points from last quarter.
- Total Remaining Deal Value: $13.1 billion, up 83% year-over-year and 11% sequentially.
- Remaining Performance Obligations: $4.9 billion, up 103% year-over-year and 10% sequentially.
- Rule of 40 Score: 155%, a 10-point increase from the prior quarter.
- US Commercial Customer Count: 653 customers, up 35% year-over-year and 6% sequentially.
- Full Year 2026 Revenue Guidance: Raised to between $8.15 billion and $8.158 billion, representing 80% growth year-over-year.
- Full Year 2026 US Commercial Revenue Guidance: Raised to an excess of $3.424 billion, representing growth of at least 134%.
- Full Year 2026 Adjusted Operating Income Guidance: Raised to between $4.889 billion and $4.897 billion.
- Full Year 2026 Adjusted Free Cash Flow Guidance: Raised to between $4.5 billion and $4.7 billion.
Release Date: August 03, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Palantir Technologies Inc PLTR delivered its highest-ever revenue growth of 93% year-over-year, with US commercial revenue accelerating to 149% growth.
- The company achieved a record Rule of 40 score of 155% and generated $1.22 billion in adjusted free cash flow, surpassing $1 billion milestones in GAAP net income, adjusted free cash flow, and adjusted operating income.
- Closed a record 220 deals worth $1 million or more, including 98 deals over $5 million and 70 deals over $10 million, highlighting strong enterprise demand.
- US commercial TCV bookings surged 153% year-over-year to $2.132 billion, and the company raised its full-year 2026 revenue guidance to $8.154 billion, an 80% growth rate.
- The company's AIP platform is winning head-to-head against frontier labs, with a major Silicon Valley tech company choosing Palantir after a bake-off, converting to a $10 million ACV contract.
- Net dollar retention increased to 157%, up 700 basis points from the prior quarter, indicating strong customer expansion and value realization.
Negative Points
- International commercial revenue growth lagged significantly at 26% year-over-year, compared to the explosive 149% growth in the US commercial segment.
- Adjusted gross margin was impacted by increased costs from taking on cloud hosting for a government customer, which could pressure future margins.
- The company expects a significant ramp in expenses in the third quarter due to seasonality of new hire starts and product initiatives, potentially impacting near-term profitability.
- Revenue from strategic commercial contracts remains minimal at approximately $400,000 for the quarter, representing just 0.02% of overall revenue.
- The company's heavy reliance on US government and commercial growth (81% of total revenue) exposes it to potential budget cuts or policy shifts in the US.
- CEO Alex Karp's aggressive goal to maintain or exceed current US commercial growth rates for the next 18 months may be challenging to sustain given the already high base.
Q & A Highlights
Q: Can you walk through what you learned at the sovereignty boot camp and what surprised you about the level of customer interest and demand?
A: Alex Karp (CEO) explained that the sovereign boot camp saw overwhelming demand from CEOs and operational leads across all levels of business. Customers understand they need to control their "alpha" and that token-maxing transfers their data, prompts, and expertise to third parties. However, they need education on how to work with open and closed-weight models, how ontology creates value, and how to structure contracts. Karp noted that even existing Foundry-only customers are now migrating to the sovereign AI stack, and the internal excitement at Palantir is at an all-time high, with the company now pushing to scale through technical partners to meet the massive demand.
Q: Why did it take enterprises so long to realize that owning their data and controlling their models is critical, and why is Palantir now the clear winner in AI?
A: Shyam Sankar (CTO) explained that the market first focused on efficacy (turning AI into economic value) and only later realized the importance of controlling the weights and reasoning traces generated, which are often more valuable than the data itself. Alex Karp added that Palantir's success stems from being fully aligned with customers, valuing "artistic insights" over pure science, and maintaining an outsider status that forces the company to deliver exceptional results. He emphasized that Palantir's model is non-parasitic, unlike traditional Silicon Valley software approaches, and that the company's results (149% US commercial growth) speak for themselves.
Q: Is there a risk for customers who choose a single lab and become beholden to their models, especially if a model gets pulled or becomes obsolete?
A: Alex Karp confirmed that Palantir already offers products that allow customers to switch out models, particularly in the US government. Ryan Taylor (CRO) added that Palantir's focus is on converting tokens to value and bringing the right models to bear for the right purposes, with contracts structured to support customer alpha. Shyam Sankar highlighted that Palantir is moving away from generic benchmarks to customer-specific benchmarks, which allows businesses to empirically determine which models work best for their unique tasks, avoiding the risk of being locked into a single frontier model that may not actually perform best for their specific workflows.
Q: Can you elaborate on the record Q2 results and the key drivers behind the unprecedented growth?
A: Ryan Taylor (CRO) reported 93% year-over-year revenue growth, the highest ever, with US business growing 115% and now comprising over 81% of total revenue. US commercial revenue accelerated to 149% year-over-year, and US government grew 90%. The company closed 220 deals worth $1 million or more, including 98 deals over $5 million and 70 deals over $10 million, all record highs. Dave Glazer (CFO) added that the company surpassed $1 billion milestones in GAAP net income, adjusted free cash flow, and adjusted operating income, with a Rule of 40 score of 155% and $1.22 billion in adjusted free cash flow.
Q: What is driving the massive acceleration in US commercial bookings, and how sustainable is this growth?
A: Dave Glazer (CFO) reported that US commercial TCV bookings reached $2.132 billion, growing 153% year-over-year and 81% sequentially, nearly $800 million above the prior highest quarter. This was driven by enterprises recognizing the need for sovereign AI to retain control of their alpha. The company raised its full-year US commercial revenue guidance to over $3.424 billion (at least 134% growth) and full-year revenue guidance to $8.154 billion (80% growth), representing the largest ever full-year guidance raise. Alex Karp stated he is driving the business to grow at a rate equal to or above US commercial growth for the next 18 months.
Q: Can you provide more detail on the customer wins and the scale of deals closed this quarter?
A: Ryan Taylor (CRO) highlighted several major deals: a multinational technology company expanded from one operating company to a three-year nearly $370 million deal; a global asset management firm converted to a $35 million TCV deal spanning asset management automation; a global software and services company signed an initial $15 million five-month deal after an agent camp; and a leading nonprofit health system converted to a three-year partnership at $37 million TCV. These deals demonstrate customers' decisiveness in expanding with Palantir after initial pilots.
Q: How is Palantir's technology differentiating from competitors, particularly in the AI platform space?
A: Shyam Sankar (CTO) explained that AIP succeeds because it integrates mixed human-AI teams across heterogeneous workflows and delivers the fastest implementations that turn tokens into real economic value. He highlighted a bake-off where a major Silicon Valley tech company pitted a frontier lab against Palantir: the lab failed to deliver value on a ticketing automation problem, while Palantir built agent swarms that proactively recommended marketing and pricing changes, converting into a $10 million ACV contract. Sankar emphasized that Palantir's forward-deployed engineers (FDs) and ontology-based approach are determinative advantages that competitors cannot replicate.
Q: What is the significance of the Maven platform's growth and its impact on the US government business?
A: Shyam Sankar (CTO) reported that Maven continues to deliver for the joint force, with the first program of record launching on the platform this quarter. Over 25,000 builders (uniform service members, civilians, contractors, and companies) are developing agents and applications on the platform. Despite this growth, Palantir's trailing 12-month revenue from the Department of Defense is still less than 25 basis points of the Pentagon's budget, indicating significant room for expansion. The US government business grew 90% year-over-year, driven by continued execution in existing programs and new awards.
Q: Can you discuss the financial outlook for Q3 and the full year, including margin expectations?
A: Dave Glazer (CFO) provided Q3 2026 guidance of 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, the company raised revenue guidance to between $8.15 billion and $8.158 billion, adjusted income from operations to between $4.889 billion and $4.897 billion, and adjusted free cash flow to between $
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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