Palantir Surges as Q2 Revenue Climbs 93% and It Lifts Full-Year Guidance

Palantir stock climbed more than 20% in afternoon trading Tuesday, on track for its biggest single-day gain in over a year, after the software company reported second-quarter results that beat across its operating lines and sharply raised its full-year forecast. The numbers landed Monday after the close. Growth did the talking.

U.S. commercial revenue grew 149%

For the quarter ended June 30, Palantir posted revenue of $1.94 billion, up 93% from a year earlier. The standout was the U.S. commercial business, where sales rose 149% to $764 million as large enterprises expanded their use of the company’s AI software platform. U.S. government revenue, long the core of the business, grew 90% to $809 million. GAAP net income came to $1.06 billion, a 55% margin on sales, and diluted earnings were $0.41 a share, ahead of the $0.35 analysts had modeled. Both revenue lines beat estimates. The company said its Rule of 40 score, a gauge that combines revenue growth with profit margin, reached 155%.

The forecast did the rest

A strong quarter became a sharp move once the outlook came out. Palantir now expects full-year 2026 revenue of $8.15 billion to $8.16 billion, up from the $7.65 billion to $7.66 billion it guided three months ago. That implies 82% annual growth and marks the company’s largest guidance increase to date. Management also lifted its U.S. commercial revenue target to more than $3.42 billion, or at least 134% growth for the year, and raised its adjusted free cash flow guidance to a range of $4.5 billion to $4.7 billion. Chief executive Alex Karp called the quarter “otherworldly” and pointed to what he described as accelerating demand for AI sovereignty. The commercial acceleration is the line investors watch most closely, a sign that adoption of the company’s AI tools among non-government customers is broadening well beyond early pilots.

The stock had lagged into the print

The advance follows a quiet stretch. Palantir closed Monday at $125.65, down 5% over the prior 30 days and about 15% from three months earlier. Even after Tuesday’s jump, the shares traded below their 52-week high of $207.52, though well clear of the year’s low of $106.37. Volume ran heavy going into the report and heavier after it, with Monday’s session already near twice the 20-day average.

The results landed on a strong day for the tape. Major U.S. stock indexes touched fresh records, helped by upbeat earnings and by comments from Treasury Secretary Scott Bessent that a U.S.-Iran agreement over the Strait of Hormuz could be reached soon, which pushed oil prices lower. Caterpillar was among the other large-cap names rising on its own outlook.

On the calendar

More earnings land tonight. The session close will set the official one-day move for Palantir. After Tuesday’s bell, Advanced Micro Devices and Amgen are due to report, extending a busy week of results. From here, the question is whether the accelerated U.S. commercial growth the company guided toward holds through the second half. Palantir’s next quarterly update is scheduled for November 9.

This is a general-market summary for information only — not investment advice, and not a recommendation regarding any security.