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FY2026 Q2
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Palantir Technologies Inc. earnings call
Buzzberg read
U.S.
Palantir reported a blowout Q2 with 93% revenue growth, driven by 149% growth in U.S. commercial, and raised its full-year guidance significantly. Management positioned itself as the winner in the 'sovereign AI' movement, contrasting its approach with 'token maxing' competitors. Q2 revenue grew 93% YoY to $1.935B, with U.S. commercial growing 149% YoY.
Buzzberg read U.S. Palantir reported a blowout Q2 with 93% revenue growth, driven by 149% growth in U.S. commercial, and raised its full-year guidance significantly. Management positioned itself as the winner in the 'sovereign AI' movement, contrasting its approach with 'token maxing' competitors. Q2 revenue grew 93% YoY to $1.935B, with U.S. commercial growing 149% YoY. Read full analysisCollapse analysis
Palantir reported a blowout Q2 with 93% revenue growth, driven by 149% growth in U.S. commercial, and raised its full-year guidance significantly. Management positioned itself as the winner in the 'sovereign AI' movement, contrasting its approach with 'token maxing' competitors. Q2 revenue grew 93% YoY to $1.935B, with U.S. commercial growing 149% YoY.
- Company raised full-year revenue guidance to $8.154B (from ~$7.4B), citing massive demand for sovereign AI.
- U.S. commercial TCV bookings hit a record $2.132B, up 153% YoY.
- Rule of Forty score is 155, with adjusted free cash flow margin of 63%.
Revenue$1.9355B+19% QoQ
US_COMMERCIAL Revenue$0.764B+28% QoQ
EPS$0.41+24% QoQ
Gross margin84.66%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Guidance
Management raises full-year revenue guidance by 11 points
AI
Sovereign AI is core strategy, driven by customer demand
Show 3 more callouts
AI
Post-training models can beat frontier benchmarks
Competition
AIP wins bake-off against frontier lab
Demand
Net dollar retention reaches 157%
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $1.9355B | +19% QoQ |
| US_COMMERCIAL Revenue | $0.764B | +28% QoQ |
| EPS | $0.41 | +24% QoQ |
| Gross margin | 84.66% | Reported |
| Operating margin | 47.12% | Reported |
| Free cash flow | $1.2016B | +35% QoQ |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Free cash flow | FY2026 | $4.5B–$4.7B | $4.6B | Raised |
| Operating margin | FY2026 | $4.889B–$4.897B | $4.893B | Raised |
| Revenue | FY2026 | $8.15B–$8.158B | $8.154B | Raised |
| RevenueUS_COMMERCIAL | FY2026 | $3.424B | $3.424B | Raised |
AI, capex & demand read
Management read
Upbeat
Management's tone is highly bullish, repeatedly emphasizing record results, unprecedented demand, and a transformative shift to sovereign AI, with language like 'astonishing' and 'revolutionary change.'
Management AI read
Management positions AIP as the definitive enterprise AI platform for sovereign AI, where customers own their data, logic, and models. They emphasize real economic value over token consumption, with examples of post-training beating frontier benchmarks and winning bake-offs against labs. Demand is surging as U.S. commercial revenue grows 149%, with customers converting to multi-year deals and expa
Investment and capacity
Management discusses a cost increase from taking on cloud hosting for a government customer, which they believe will enable faster time-to-value and expand future workflows. They continue investing in technical hiring and R&D to support the AI platform and sovereign AI efforts, with expenses ramping in Q3.
all 3 named companies below
Companiesreturns since call
Partners
ANDURIL
Partners
Alex Karp
Indirect mention of a partnership approach in defense tech, which is a core part of Anduril's business, suggesting a collaborative or competitive dynamic.
Evidence
“We've seen this in the defense tech stuff. And Shyam, you know, like the approach to defense tech where we partner with people.”
Partners
Alex Karp
Palantir found that a 'vanilla' Nemotron Ultra model without post-training outperformed Frontier models on five production tasks, challenging the assumption that frontier labs are always best. — This suggests that for specific enterprise tasks, smaller or open-weight models can be superior, potentially reducing the need to rely on frontier labs and shifting value to the orchestration layer (Palantir) and hardware (NVIDIA).
Evidence
“We built a partnership with NVIDIA. We're expanding our application layer.”
Investees
Investees
Dave Glazer
Palantir's investment in SpaceX is contributing positively to its earnings, though the impact is small.
Evidence
“Unrealized gains from our holdings in SpaceX resulted in a $0.03 tailwind to GAAP EPS...”
External signals
Supply-chain alpha · 2returns since call
Palantir found that a 'vanilla' Nemotron Ultra model without post-training outperformed Frontier models on five production tasks, challenging the assumption that frontier labs are always best.
Evidence
“Within 24 hours of bringing Nemotron Ultra into our stacks, we found five production tasks where a standard Nemotron Ultra model without post-training beat Frontier models.”
Palantir's U.S. commercial TCV bookings reached $2.132 billion, nearly $800 million above its prior record, indicating a massive, accelerating demand inflection.
Evidence
“We close $2.132 billion of U.S. commercial TCV bookings, representing growth of 153% year-over-year and 81% sequentially, nearly $800 million above our prior highest U.S. commercial bookings quarter.”
Methodology & coverage
Management-only analysis. All 3 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.