Palantir revenue jumps 93% to $1.94 billion, raises full-year guidance
The data analytics firm reported $1.94 billion in second-quarter revenue, far above the $1.8 billion analysts expected, driven by booming US government and commercial business.
Earnings surge
Palantir Technologies reported second-quarter revenue of $1.94 billion, a 93% increase from the same period a year earlier and well above the $1.80 billion consensus estimate. Adjusted earnings per share came in at $0.41, compared with the $0.35 analysts had forecast. The quarter's revenue also grew roughly 20% from the prior three months. Founded in 2003 in Silicon Valley, Palantir specializes in analyzing large datasets for government and corporate clients. Its platforms are used to evaluate potential targets in real time during armed conflicts by cross-referencing intelligence, biometric data, and phone records.
Chief executive Alex Karp wrote in his letter to shareholders:
Our business is growing at a speed and scale we have never experienced before.
US growth engine
The expansion was overwhelmingly driven by the home market. US revenue reached $1.57 billion, more than double the year-ago figure. US government revenue climbed 90% to $809 million, while commercial revenue in the US jumped 149% to $764 million. Palantir's software is used by the Department of Homeland Security, the Pentagon, and, according to media reports, in the Iran conflict, assisting with target assessment and intelligence analysis.
- Q2 2026 Actual
- 1.94 $ billion
- Analyst Estimate
- 1.8 $ billion
Raised outlook
Palantir lifted its full-year revenue forecast to between $8.15 billion and $8.16 billion. For the current third quarter, it projected revenue of about $2.16 billion, also above market expectations. The stock rose about 12% in after-hours trading, to $140.76, after the release. Snapshots taken at different points of the session were reported as anything from more than 9% to 14%. Palantir shares are still down 29% for the year.
European pushback
While the US business booms, Palantir faces growing skepticism in Europe. Governments there worry about over-dependence on US technology platforms. The company is legally challenging the Mayor of London's decision to block a two-year, GBP 50 million contract with the Metropolitan Police, worth GBP 25.3 million in 2026-27 with an optional GBP 24.8 million extension the following year. The deal would have deployed AI systems to automate tasks and analyze evidence in criminal investigations. The Mayor's Office for Policing and Crime blocked it on value-for-money grounds, saying the force had engaged only one potential supplier; a trial is set for January 2027. Palantir's tools are already in use in several German states, including North Rhine-Westphalia, Hesse, and Bavaria.
- US Government
- 0.809 $ billion
- US Commercial
- 0.764 $ billion
- International
- 0.367 $ billion
Karp's positioning
CEO Alex Karp used the earnings call to frame Palantir as a counterweight to leading AI developers such as OpenAI and Anthropic. He described the company as a middleman that lets customers retain full control over their data and switch between AI providers. Karp also told analysts that companies pay to have their knowledge incorporated into AI models, which can then be used to build competing businesses. The call itself was unconventional: Karp appeared in a tight white shirt with the management team in casual clothes, and analysts including Dan Ives joined by video from locations like a park.
