Palantir Q2 Revenue Grows 93% and Guidance Rises

A 93% Growth Rate at This Revenue Scale Is Unusual

Palantir reported second-quarter 2026 revenue of $1.94 billion, up 93% year over year, and raised full-year guidance by roughly half a billion dollars. The stock climbed about 15.6% in the session that followed. For a company already running at a multi-billion-dollar annual run rate, accelerating rather than decelerating is the part that made the number notable.

• Q2 revenue of $1.94 billion, up 93% year over year
• US commercial revenue up 149% to $764 million; US government revenue up 90% to $809 million
• Net income of $1.06 billion, or 41 cents per diluted share, ahead of consensus
• FY2026 guidance raised to $8.15-$8.16 billion from $7.65-$7.66 billion, implying about 82% growth

Which Number Actually Matters Here?

US commercial, up 149%.

Government revenue at Palantir has always been substantial and is growing well — 90% to $809 million is a strong result in its own right. But government contracting is lumpy, long-cycle, and difficult to extrapolate. The commercial business is the one that tests whether the product sells on its merits to buyers who have alternatives and no procurement mandate.

At 149% growth to $764 million, US commercial is now within striking distance of the government segment, and the company lifted its full-year US commercial target above $3.42 billion — at least 134% growth. That is the line item that changes the story from "defence contractor with good software" to "enterprise software company."

The Guidance Raise Is the Real Signal

Companies beat quarters routinely. Companies raise full-year guidance by roughly $500 million in the middle of the year only when the pipeline has already converted enough to make the new number safe.

Palantir also lifted adjusted operating income guidance to $4.889-$4.897 billion and adjusted free cash flow guidance to $4.5-$4.7 billion. For Q3 the company guided to $2.160-$2.164 billion in revenue with adjusted operating income of $1.292-$1.296 billion. The free cash flow figure is the one worth sitting with: a business converting this proportion of revenue to cash is not buying growth with discounts.

Fitting It Into the AI Earnings Season

This lands in a season that has been consistently strong for infrastructure and platform names. We covered Microsoft's Azure crossing $100 billion and Amazon's Q2 with AWS accelerating to 37% in recent weeks, and the common thread is that enterprise AI spending is showing up in reported revenue rather than in forward-looking commentary.

Palantir is a different expression of that trend. Cloud providers monetise AI through consumption; Palantir monetises it through deployment work and platform licences. Both accelerating at once suggests the spending is broad rather than concentrated in one layer of the stack, which is generally the healthier pattern. Readers following our stock trading coverage will have seen the same signal across most of this reporting cycle.

The Sober Caveat

None of this speaks to valuation, and it should not be read as advice on the stock. Palantir trades at a multiple that already embeds a great deal of future growth, and a 93% growth rate mathematically cannot persist indefinitely at increasing scale. The interesting question for the next several quarters is not whether growth decelerates — it will — but where it settles.

The result also arrived alongside a heavy earnings calendar, with AMD and SpaceX both reporting after the bell on the same day. Broad market response was positive, with the S&P 500 up 1.56%, the Dow up 1.78%, and the Nasdaq up 2.14% on the session.

Sources: CNBC — August 3, 2026; Businesswire press release — August 3, 2026; TheStreet market wrap — August 4, 2026.