Palantir Q2 earnings beat estimates; revenue up 93% to $1.94B, stock surges 25%+ after hours

Ruchi Gupta Wed, August 5, 2026 at 6:32 AM PDT 4 min read

• PLTR -1.58%

About Palantir Technologies

Palantir Technologies (PLTR) is a leading enterprise AI and data analytics company that builds operating systems for modern data-driven decision-making. Headquartered in Miami, Florida, Palantir serves both government and commercial clients through its flagship platforms, Gotham and Foundry, which integrate disparate, sensitive data sources while preserving privacy and security.

The company's Artificial Intelligence Platform (AIP) has become a cornerstone of its growth strategy, enabling organizations to deploy large language models (LLMs) against structured and unstructured data. Palantir's client base spans defense, intelligence, healthcare, energy, manufacturing, and financial services, positioning it as a key beneficiary of the enterprise AI adoption wave sweeping global boardrooms.

About Palantir Stock

Palantir's stock has been one of the market's most volatile AI plays in 2026. After delivering triple-digit gains in 2023, 2024, and 2025, the stock corrected sharply this year amid a broader software and AI valuation reset, falling roughly 30% year-to-date (YTD) and trading more than 40% below its 52-week high before its latest earnings report. However, sentiment shifted dramatically following blowout second-quarter results, with shares rocketing 29% higher after Palantir reported "otherworldly" second-quarter earnings driven by customer demand for AI sovereign tools.

Palantir has significantly lagged broader benchmarks for much of 2026. Over the trailing 52 weeks, even accounting for the earnings report spike, PLTR has declined nearly 6% while the S&P 500 ($SPX) surged almost 23%, with the underperformance closing somewhat to a roughly 8% YTD decline versus the index's 13% gain. The stock has also trailed key software-sector ETFs, reflecting valuation-driven rotation away from high-multiple AI names despite Palantir's continued operational outperformance.

Palantir Surges Post Results

Palantir Technologies shares surged 7.5% in extended trading on Monday and are up more than 25% today after the software giant reported second-quarter results that topped Wall Street's forecast and raised its full-year guidance.

For the period ending June 30, Palantir earned an adjusted $0.41 per share as revenue soared 93% year-over-year (YoY) to $1.94 billion, easily beating analyst estimates of $0.34 EPS on $1.81 billion in revenue. U.S. commercial revenue jumped 149% YoY to $764 million, while U.S. government revenue climbed 90% to $809 million, pushing total U.S. revenue up 115% to $1.573 billion.

Key Quarterly Highlights

• Deal activity: The company closed 220 deals worth at least $1 million during the quarter, including:
• 98 deals worth $5 million or more
• 73 deals worth $10 million or more
• Total contract value: $3.373 billion, up 49% YoY, with a record $2.13 billion in U.S. commercial contracts
• CEO commentary: "Demand for AI sovereignty has now been unleashed," said CEO Alex Karp, calling the quarter "otherworldly" and noting the company's Rule of 40 score climbed to 155.

Guidance

Third-quarter outlook:

• Revenue: $2.16–$2.164 billion (above the $2 billion consensus estimate)
• Adjusted operating profit: $1.29 billion–$1.3 billion

Full-year 2026 guidance:

• Revenue: $8.15–$8.16 billion (up from prior guidance of $7.65–$7.66 billion, well above the $7.73 billion analysts had projected)
• Adjusted free cash flow: $4.5–$4.7 billion (raised)

Julian Lin, Investing Group Leader for Best of Breed Growth Stocks, noted the company is now within striking distance of overtaking Microsoft (MSFT) as the most profitable software company.

Source: Barchart