Palantir Q2 blowout: revenue up 93%, U.S. commercial up 149% on AIP demand

The company raised full-year 2026 guidance to $8.15B and Alex Karp called demand for AI sovereignty 'unleashed.'

Palantir reported $1.94 billion in Q2 2026 revenue, up 93% year-over-year and roughly $130 million ahead of the $1.81 billion analyst consensus, and raised full-year guidance to $8.15–$8.16 billion, implying growth near 82%. Shares jumped 12% after-hours to $140.76.

The U.S. commercial segment is the story inside the story. Revenue there hit $764 million, up 149%, with remaining deal value at $6.24 billion, more than double a year ago. Compounded against 2024, that segment is up 380%. Alex Karp described demand for AI sovereignty as “unleashed.”

What’s unusual isn’t the growth rate; it’s the profitability attached to it. GAAP operating income was $912 million on a 47% margin, adjusted operating income $1.19 billion at a 62% margin, and the company posted a Rule of 40 score of 155%. GAAP net income was $1.07 billion versus $329 million in the year-ago quarter. Cash and short-term Treasuries closed the quarter at $9.2 billion. Adjusted EPS came in at $0.41 against a $0.34–$0.35 consensus.

Guidance moved with the print. Q3 revenue is pegged at $2.16–$2.164 billion, well above the $2.00 billion Street number. Full-year U.S. commercial revenue is guided above $3.42 billion, at least 134% growth. Adjusted operating income is expected in the $4.89–$4.90 billion range, with adjusted free cash flow at $4.5–$4.7 billion.

The framing worth holding onto: enterprise AI spending in 2026 is running through a very small number of vendors with actual deployment scaffolding, and Palantir’s AIP is one of them. The 2011 hyperscaler consolidation reshaped cloud around three names. This looks like the AI-integration analog, with margins that read less like software and more like a toll road. Karp’s word was “unleashed.” The remaining deal value suggests it isn’t a one-quarter phenomenon.