PLTR Stock Jumps 10% After Palantir Reports 93% Revenue Growth, Raises 2026 Outlook

TLDR

• Palantir reported Q2 revenue of $1.94B, up 93% year over year and above the $1.80B market estimate.
• PLTR stock gained about 10% after earnings as investors reacted to stronger revenue and higher 2026 guidance.
• U.S. commercial revenue surged 149% to $764M, while U.S. government revenue increased 90% to $809M.
• Palantir raised its 2026 revenue forecast to $8.15B-$8.16B from the previous $7.65B-$7.66B range.
• Palantir posted adjusted EPS of $0.41, beating estimates of $0.35, with net income reaching $1.07B.

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Palantir Technologies shares climbed in after-hours trading after the company reported second-quarter earnings that exceeded Wall Street expectations. The software company posted strong growth across its commercial and government businesses while raising its revenue outlook for the rest of 2026. Investors also reacted to higher profit, expanding deal activity, and management’s forecast for continued demand for its artificial intelligence platform.

Source: KnockoutStocks

The latest results arrived as AI software companies continue competing for enterprise spending. Palantir said customers increased adoption of its products during the quarter, while executives maintained that demand remains strong across both private businesses and government agencies.

Revenue Beats Estimates as Profit Surges

Palantir reported second-quarter revenue of $1.94 billion, exceeding market expectations of about $1.80 billion. Total revenue increased 93% from the same period last year, while adjusted earnings reached 41 cents per share, above the expected 35 cents.

Net income rose to about $1.07 billion, compared with approximately $329 million a year earlier. The company also generated a GAAP net income margin of 55% and reported adjusted operating margins of 62% during the quarter.

Chief Executive Officer Alex Karp described the company’s performance during the earnings release. He said,

“This quarter was otherworldly: our US commercial revenue grew 149% year-over-year, our overall revenue grew 93% year-over-year.”

Karp also said, “Forget consensus. To my knowledge, no businesses at our scale has even grown half this much.”

Palantir increased its full-year revenue guidance to between $8.15 billion and $8.16 billion from its previous forecast of $7.65 billion to $7.66 billion. The company also expects third-quarter revenue to range between $2.160 billion and $2.164 billion.

Commercial and Government Businesses Drive Growth

The U.S. commercial business remained Palantir’s fastest-growing segment during the quarter. Revenue from the division climbed 149% year over year to $764 million. The company also increased its outlook for U.S. commercial revenue in 2026 to more than $3.42 billion, compared with previous guidance of $3.22 billion.

Remaining commercial deal value reached $6.24 billion after more than doubling from a year earlier. Palantir also reported record contract activity, with deals worth more than $1 million, $5 million, and $10 million all increasing from the same quarter last year.

Government operations also continued expanding. U.S. government revenue increased 90% year over year to $809 million as demand remained strong across defense and federal programs. Total U.S. revenue rose 115% compared with the previous year.

Market commentary also noted that several large customers continued moving from pilot AI projects to broader deployments, supporting higher contract values during the quarter.

AI Strategy and Analyst Upgrades Remain in Focus

During the earnings update, Karp continued defending Palantir’s approach to enterprise AI. He said customers prefer keeping control of their proprietary data instead of relying entirely on external AI model providers.

In his shareholder letter, Karp wrote, “The models have grown and thrived by essentially ingesting the entire written work product of our civilization.”

He also stated,

“We have always declined, and will continue to decline, entering into a parasitic relationship with our partners.”

Palantir said its platform allows organizations to deploy different AI models while keeping sensitive information within their own security environment. The company believes that approach continues attracting enterprise customers seeking greater control over data.

Source: X

Following the earnings report, Deutsche Bank upgraded Palantir shares to Buy from Hold while maintaining a $200 price target. Citi also raised its price target to $245 after increasing its revenue forecasts and maintaining a Buy rating. Analysts also pointed to stronger commercial contract growth and higher guidance as key factors supporting the revised outlook, although some continue monitoring whether the current pace of expansion can be maintained over future quarters.