❯ Palantir Q2 Revenue Up 93%, US Commercial Business Grows 1.5x

BEATPalantir posted second-quarter revenue of $1.94 billion, up 93% year over year, above the $1.81 billion the market expected; US commercial revenue reached $764 million, up 149% year over year, the main driver of overall growth. The company also raised its full-year 2026 revenue guidance to $8.15 billion to $8.16 billion, implying 82% annual growth, and shares rose more than 14% in after-hours trading.

PROFITLess discussed than the growth rate is profitability: GAAP operating profit was $912 million this quarter with a 47% operating margin, adjusted operating profit was $1.19 billion with a 62% margin, and EPS was $0.41, above the $0.35 expected. This is Palantir’s eighth consecutive quarter of beats. The company also raised its full-year US commercial guidance to above $3.424 billion, implying at least 134% growth — a figure that reflects management’s judgment that demand will not cool in the second half. Palantir has long been viewed as a company that lives on government contracts, but US commercial’s share has climbed steadily over the past two years, and this quarter’s growth rate was already several times that of the government business.

VALUATIONThis report pushes the debate back to valuation itself: there is almost nothing to fault in the results, and with the stock already down about 40% from its highs before the earnings, the market’s disagreement is not about fundamentals but about the multiple. The investors who need to redo their homework are those using software-company valuation frameworks — a company growing 93% with a 62% operating margin is hard to place on any existing comps table. The signal from the enterprise customer side is also worth singling out: US commercial has posted triple-digit growth for several straight quarters, showing that companies actually spent their AI deployment budgets rather than stopping at the pilot stage.

▪ SIGNALEnterprise AI spending has finally left its mark on an income statement, not just an intention announced at launch events.