Palantir Technologies Inc. (PLTR): Results of Operations and Financial Condition
Palantir Technologies Inc. (PLTR) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Palantir Reports Q2 2026 U.S. Comm Revenue Growth of 149% Y/Y and Revenue Growth of 93% Y/Y; Raises FY 2026 Revenue Guidance to 82% Y/Y Growth and U.S. Comm Revenue Guidance to 134% Y/Y, Crushing Consensus Expectations 8/3/2026 MIAMI — (BUSINESS WIRE) — Palantir Tech
How this was made
The 30-second read
Why it matters
Q2 results show very high year-over-year growth across revenue and U.S. commercial revenue, with strong operating margins and free cash flow. The company also raises FY 2026 revenue and adjusted operating income guidance, plus U.S. commercial revenue growth guidance, which can materially change consensus estimates and near-term positioning.
Market read
A same-day earnings and guidance update with explicit numeric ranges is a direct catalyst for PLTR model revisions and trading flows.
What to watch
Traders may focus on the sales-cycle and contract-to-revenue realization risk embedded in the forward-looking statements, which can matter if deal conversion slows.
Palantir Reports Q2 2026 U.S. Comm Revenue Growth of 149% Y/Y and Revenue Growth of 93% Y/Y; Raises FY 2026 Revenue Guidance to 82% Y/Y Growth and U.S. Comm Revenue Guidance to 134% Y/Y, Crushing Consensus Expectations
Revenue grew 93% year-over-year and 19% quarter-over-quarter to $1.935 billion, while U.S. commercial revenue grew 149% year-over-year to $764 million. The company reported GAAP income from operations of $912 million, GAAP net income of $1.062 billion, adjusted free cash flow of $1.220 billion, and raised full-year 2026 revenue, U.S. commercial revenue, adjusted income from operations, and adjusted free cash flow guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | $1.935 billion | 19% | 93% |
| U.S. revenueother | $1.573 billion | 23% | 115% |
| U.S. commercial revenueother | $764 million | 28% | 149% |
| U.S. government revenueother | $809 million | 18% | 90% |
| Income from operationsGAAP | $912 million | – | – |
| Income from operations marginGAAP | 47% | – | – |
| Adjusted income from operationsnon-GAAP | $1.194 billion | – | – |
| Adjusted operating marginnon-GAAP | 62% | – | – |
| Net income attributable to common stockholdersGAAP | $1.062 billion | – | – |
| Net income marginGAAP | 55% | – | – |
| Adjusted net income attributable to common stockholdersnon-GAAP | $1.047 billion | – | – |
| GAAP EPS, dilutedGAAP | $0.41 | – | – |
| Adjusted EPS, dilutednon-GAAP | $0.41 | – | – |
| Cash from operationsother | $1.216 billion | – | – |
| Cash from operations marginother | 63% | – | – |
| Adjusted free cash flownon-GAAP | $1.220 billion | – | – |
| Adjusted free cash flow marginnon-GAAP | 63% | – | – |
| Adjusted EBITDAnon-GAAP | $1.203 billion | – | – |
| Adjusted EBITDA marginnon-GAAP | 62% | – | – |
| Rule of 40 scoreother | 155% | – | – |
| Closed total contract valueother | $3.373 billion | – | 49% |
| U.S. commercial total contract valueother | $2.132 billion | – | 153% |
| U.S. commercial remaining deal valueother | $6.238 billion | 27% | 124% |
| Cash, cash equivalents, and short-term U.S. Treasury securitiesother | $9.2 billion | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| U.S. commercialNot separately specified in the provided document. | $764 million | 28% | 149% |
| U.S. governmentNot separately specified in the provided document. | $809 million | 18% | 90% |
Q3 2026; full year 2026 outlook
- RevenueQ3 2026: between $2.160 – $2.164 billion. Full year 2026: between $8.150 – $8.158 billion.
- NoteQ3 2026 adjusted income from operations: between $1.292 – $1.296 billion.
- NoteFull year 2026 U.S. commercial revenue: in excess of $3.424 billion, representing a growth rate of at least 134%.
- NoteFull year 2026 adjusted income from operations: between $4.889 – $4.897 billion.
- NoteFull year 2026 adjusted free cash flow: between $4.5 – $4.7 billion.
- NoteThe company continues to expect GAAP operating income and net income in each quarter of this year.
What drove it
- U.S. commercial revenue grew 149% year-over-year and 28% quarter-over-quarter to $764 million.
- U.S. government revenue grew 90% year-over-year and 18% quarter-over-quarter to $809 million.
- The company closed 220 deals of at least $1 million, 98 deals of at least $5 million, and 73 deals of at least $10 million.
- Closed total contract value was $3.373 billion, and U.S. commercial total contract value was $2.132 billion.
- U.S. commercial remaining deal value was $6.238 billion.
Concerns
- The majority of contracts are subject to termination provisions, including for convenience, and there can be no guarantee that contracts are not terminated or that contract options will be exercised.
- Remaining deal value may exclude all or some portion of certain commercial contracts based on ongoing assessments of customers' financial condition, ability and intention to pay, and revenue-recognition criteria.
- The filing cites long and unpredictable sales cycles, quarterly fluctuation and seasonality, complex and lengthy implementation processes, and macroeconomic and geopolitical events among risks.
- The filing identifies risks related to artificial intelligence in the company's platforms and breaches or access to company, customer, or third-party data.
What to watch
- Execution against Q3 2026 revenue guidance of between $2.160 – $2.164 billion.
- Execution against full-year 2026 revenue guidance of between $8.150 – $8.158 billion.
- Delivery of U.S. commercial revenue in excess of $3.424 billion for full year 2026.
- Conversion of closed total contract value and U.S. commercial remaining deal value into recognized revenue.
- Delivery of adjusted income from operations and adjusted free cash flow within the full-year guidance ranges.
Balance sheet and cash flow
- Cash from operations of $1.216 billion, representing a 63% margin.
- Adjusted free cash flow of $1.220 billion, representing a 63% margin.
- Cash, cash equivalents, and short-term U.S. Treasury securities of $9.2 billion.
Analysis
Palantir reported a strong Q2 2026, with revenue of $1.935 billion, up 93% year-over-year and 19% quarter-over-quarter. U.S. revenue reached $1.573 billion, growing 115% year-over-year and 23% quarter-over-quarter. U.S. commercial revenue was the fastest reported revenue category, rising 149% year-over-year and 28% quarter-over-quarter to $764 million, while U.S. government revenue grew 90% year-over-year and 18% quarter-over-quarter to $809 million.
Profitability and cash generation were substantial in the reported period. GAAP income from operations was $912 million at a 47% margin, while adjusted income from operations was $1.194 billion at a 62% margin. GAAP net income attributable to common stockholders was $1.062 billion at a 55% margin. Cash from operations was $1.216 billion and adjusted free cash flow was $1.220 billion, both representing 63% margins. The company also reported a Rule of 40 score of 155%.
Commercial activity and contract metrics showed continued expansion. The company closed 220 deals of at least $1 million, 98 deals of at least $5 million, and 73 deals of at least $10 million. Closed total contract value was $3.373 billion, up 49% year-over-year, including $2.132 billion of U.S. commercial total contract value, up 153% year-over-year. U.S. commercial remaining deal value reached $6.238 billion, up 124% year-over-year and 27% quarter-over-quarter. These contract measures presume the exercise of customer options and no contract terminations, except as described in the company's definitions.
The company raised its outlook across its stated full-year financial targets. Full-year revenue guidance is between $8.150 – $8.158 billion, and U.S. commercial revenue guidance is in excess of $3.424 billion, representing growth of at least 134%. It also raised full-year adjusted income from operations guidance to between $4.889 – $4.897 billion and adjusted free cash flow guidance to between $4.5 – $4.7 billion. For Q3 2026, it expects revenue of between $2.160 – $2.164 billion and adjusted income from operations of between $1.292 – $1.296 billion.
Liquidity was supported by $9.2 billion of cash, cash equivalents, and short-term U.S. Treasury securities. No capital-return activity was reported in the provided filing text. The principal reported execution considerations are the conversion of contract measures into revenue, customer termination provisions, sales-cycle variability, implementation complexity, and the ability to sustain the guided growth and profitability levels.
Management, verbatim
Demand for AI sovereignty has now been unleashed. And Palantir is the only company that has demonstrated it can transform tokens into actual economic value. Our customers trust us to provide them with maximal control over their operations, data, and decisions. Their competitive advantage should never become the training data for future models. This quarter was otherworldly: our U.S. commercial revenue grew 149% year-over-year, our overall revenue grew 93% year-over-year, and our Rule of 40 score climbed to 155%. The sovereign AI revolution makes us very optimistic about the future.
Alex Karp, Co-Founder and Chief Executive Officer of Palantir Technologies
Not in the filing
stated, not guessed- Prior-year and prior-quarter absolute revenue amounts.
- Prior-year and prior-quarter absolute U.S. revenue amounts.
- Prior-year and prior-quarter absolute U.S. commercial revenue amounts.
- Prior-year and prior-quarter absolute U.S. government revenue amounts.
- Gross profit and gross margin.
- Prior-year, prior-quarter, year-over-year, and quarter-over-quarter comparisons for income from operations.
- Prior-year, prior-quarter, year-over-year, and quarter-over-quarter comparisons for net income and EPS.
- Debt balances.
- Share repurchases, dividends, and other capital-return activity.
- Capital expenditures.
- Free cash flow on a GAAP basis.
- Prior outlook needed for comparison with actual reported Q2 2026 results.
- Guidance for gross margin, operating expenses, and tax rate.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is Palantir’s SEC Form 8-K (Item 2.02) with an attached earnings release for Q2 2026 and updated outlook for Q3 and full-year 2026.
Ticker impact
Palantir reported Q2 2026 results and raised FY 2026 revenue guidance to $8.150-$8.158B, including U.S. commercial growth guidance.
Bullish bias for the next session and into guidance digestion, with follow-through risk if investors focus on valuation or sales-cycle commentary.
The filing includes specific Q2 metrics (revenue, margins, FCF) and explicit raised FY and Q3 outlook ranges, which are direct inputs to earnings models and positioning.
Market effects
Reinforces demand narrative for AI-sovereignty and government plus commercial AI software spend, potentially supporting sentiment for high-growth AI infrastructure/software peers.
Limited direct regional read-through; primarily U.S. government and U.S. commercial revenue mix.
Moderate, as the guidance emphasis is U.S.-centric but can influence broader AI software growth expectations.
Counterpoint
Investors may discount the magnitude of growth if they believe it is driven by timing of large deals or contract conversion rather than durable run-rate expansion.
Key entities
- public_companyPalantir Technologies Inc.
Subject of the 8-K, reporting Q2 2026 results and raising FY 2026 guidance.
- executiveAlex Karp
CEO quoted emphasizing AI sovereignty demand and linking it to Palantir’s value creation.
