Palantir's Blowout Q2 Results Surpass Expectations, Stock Surges 12%

PLTR delivered the strongest quarter in its history as a public company, beating Wall Street on both the top and bottom line and lifting its full-year outlook . Revenue reached $1.94 billion, up 93% year over year against a consensus estimate near $1.80 billion, while GAAP net income landed at $1.06 billion, or $0.41 per diluted share, ahead of the roughly $0.35 analysts had modeled . Shares surged 12% on the print .

The commercial book is now the engine. U.S. commercial revenue climbed 149% year over year to $764 million, outpacing a U.S. government segment that itself grew 90% to $809 million. That is the closest the two segments have ever been, and it addresses the central bear argument that Palantir remains a defense contractor with a software multiple. Management raised full-year 2026 revenue guidance to a range of $8.150 billion to $8.158 billion, implying roughly 82% growth, and lifted U.S. commercial guidance above $3.424 billion, or at least 134% growth .

CEO Alex Karp attributed the acceleration to enterprise demand for applied AI deployment rather than experimentation, pointing to a Rule of 40 score of 155% as evidence that the growth is not being bought with margin . Net income at $1.06 billion on $1.94 billion of revenue works out to a 55% GAAP margin, an unusual combination at this growth rate for enterprise software.

The question the guidance raise leaves open is durability. A 149% commercial growth rate compounds against a larger base each quarter, and the raised full-year bar now assumes the enterprise pipeline converts at a similar pace through the back half. Investors could focus on customer-count disclosures and net dollar retention in the coming quarters as the cleaner read on whether this is a step-change in adoption or a pull-forward of AI budget.

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