Palantir Technologies (PLTR) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $1.94 billion, up 93% year-over-year and 19% sequentially, driven by U.S. commercial and government segments and strong AI platform adoption.

• U.S. revenue was $1.573 billion, up 115% year-over-year, with U.S. commercial revenue up 149% to $764 million and U.S. government revenue up 90% to $809 million.

• Closed 220 deals of at least $1 million, including 98 deals at $5 million+ and 73 at $10 million+; U.S. commercial TCV reached $2.13 billion, up 153% year-over-year.

• Achieved a Rule of 40 score of 155%, reflecting high growth and profitability.

• Customer count increased to 1,049 as of June 30, 2026, up 24% year-over-year.

Financial highlights

• Adjusted free cash flow was $1.22 billion (63% margin), up 115% year-over-year; adjusted operating income was $1.19 billion (62% margin).

• GAAP net income was $1.062 billion (55% margin); GAAP and adjusted EPS (diluted) were $0.41.

• GAAP operating income was $912 million (47% margin).

• Cash, cash equivalents, and short-term U.S. Treasury securities totaled $9.2 billion at quarter end, with no debt.

• Net dollar retention was 157% in Q2 2026.

Outlook and guidance

• FY 2026 revenue guidance raised to $8.150–$8.158 billion (82% year-over-year growth); U.S. commercial revenue guidance raised to over $3.424 billion (at least 134% growth).

• Q3 2026 revenue expected between $2.160–$2.164 billion; adjusted income from operations between $1.292–$1.296 billion.

• Adjusted free cash flow guidance for 2026 raised to $4.5–$4.7 billion.

• Expectation for GAAP operating income and net income in each quarter of 2026.

• Management anticipates ongoing investment in R&D and sales to support growth.