Palantir (PLTR) shares roared higher in extended trading after the AI data analytics firm delivered stellar second-quarter results that crushed Wall Street forecasts and prompted a dramatic upgrade to its full-year guidance.
Revenue for Q2 catapulted 93% year-on-year to $1.935 billion, far above the $1.81 billion consensus. GAAP diluted earnings per share hit $0.41, towering over the $0.35 expected. The mammoth beat was powered by its US commercial business, which saw sales jump 149% to $764 million, while total contract value in the segment exploded to $2.132 billion. US government revenue also nearly doubled to $809 million.
The company’s Rule of 40 score—a key software metric—soared to 155, combining a 93% revenue growth rate with an adjusted operating margin of 62%. CEO Alex Karp called the figure “unheard of” at this scale. Commercial momentum is accelerating: Palantir closed 220 deals worth $1 million or more in Q2, and remaining deal value surged 124% to $6.238 billion.
Buoyed by the quarter, management lifted its 2026 revenue forecast to a range of $8.150 billion to $8.158 billion, implying at least 82% annual growth. Adjusted free cash flow is now pegged between $4.5 billion and $4.7 billion. The company held $9.2 billion in cash and equivalents at quarter-end.
The results demonstrate that Palantir’s Artificial Intelligence Platform (AIP) is transitioning from pilot programs into long-term enterprise commitments, defying recent scepticism about growth sustainability. Still, PLTR stock remains down over 25% year-to-date amid tech sector volatility. Wall Street rates the stock at Overweight with a mean price target of $189.
