Catenaa, Tuesday, August 04, 2026 – Palantir stock surged over 18% on Tuesday as second-quarter earnings grew 93%, beating market expectations.
Palantir second-quarter revenue grew 93% to $1.94 billion, ahead of the $1.81 billion analysts expected, with diluted earnings of $0.41 per share on both GAAP and adjusted bases, against a $0.34 consensus.
US commercial revenue rose 149% to $764 million, and US government revenue rose 90% to $809 million, taking total US revenue up 115% to $1.57 billion.
The company sees full-year revenue of $8.16 billion versus prior estimates for $7.65 billion to $7.66 billion.
“The sovereign AI revolution makes us very optimistic about the future,” Palantir’s CEO Alex Karp said.
The company said it closed 220 deals worth $1 million or more, of which 98 were worth $5 million or more and 73 were worth $10 million or more.
“Record highs across the board,” Palantir’s Chief Revenue Officer and Chief Legal Officer, Ryan Taylor, told analysts during the earnings call.
The company also reported $1.22 billion in adjusted free cash flow, a metric closely watched in the AI space, topping estimates of $1 billion.
Palantir has argued that the enterprise AI market is splitting into two camps: companies paying millions of dollars for model tokens only to receive “AI slop,” and those driving measurable return on investments by using the company’s underlying infrastructure layer.
“In contrast, enterprises that are not using Palantir are seeing their token meters spinning endlessly, just to get slop without any correlation to value,” said Palantir’s Chief Revenue Officer, Ryan Taylor.
Earlier this year, Palantir’s Maven Smart System became an official Pentagon program of record, locking in a bigger role for the company in US military AI projects for years to come.
Palantir stock is down more than 16% year to date, as the company was caught up in the AI disruption scare earlier this year that hit the entire software complex.
Wall Street is still bullish on the stock, with 22 Buy ratings, 9 Holds, and 2 Sells.
Last month, D.A. Davidson’s Gil Luria upgraded the stock, noting that Palantir has a key advantage in its orchestration tool, the ability to switch between AI models with minimal disruption.
Luria has a Buy rating on the stock and a $175 price target.
