Enterprise

Palantir crushes Q2 with 93% revenue growth, hikes full-year guidance to $8.15 billion

U.S. commercial revenue jumped 149% to $764 million as CEO Alex Karp said 'demand for AI sovereignty has now been unleashed.'

By Giulia Donatello · Startups & funding · 2026-08-04 · 3 min read

Photo: Unsplash / Luke Chesser — Analytics dashboard showing charts and financial data on a laptop screen

Palantir posted $1.94 billion in Q2 revenue against a $1.80 billion consensus, grew 93% year over year, and raised full-year 2026 guidance to roughly $8.15 billion. Shares climbed about 12% after the bell. The print is the clearest evidence yet that the enterprise AI budget cycle, long promised and slow to arrive, has finally hit the P&L of a public company that sells directly into it.

The U.S. commercial segment is where the story compounds. Revenue there grew 149% to $764 million, and management now expects the segment to exceed $3.424 billion for the year, up from a prior $3.22 billion guide and implying growth of at least 134%. Since 2024, U.S. commercial revenue has compounded 380%. Remaining deal value in that book stands at $6.24 billion, more than double a year ago.

CEO Alex Karp framed the quarter in the register he tends to reserve for keynote speeches, not earnings releases. “Demand for AI sovereignty has now been unleashed,” he said, a formulation that reads less like customer feedback and more like a positioning claim: Palantir wants to be the vendor of record for governments and Fortune 500s that have decided model access alone isn’t a strategy.

The deal cadence supports the framing. Palantir closed 220 deals worth at least $1 million, 98 worth at least $5 million, and 73 worth at least $10 million. Adjusted EPS came in at 41 cents against a 35-cent consensus. Net income of $1.07 billion (41 cents per share) more than tripled from roughly $329 million (13 cents) a year earlier. The Rule of 40 score, a SaaS-era shorthand for growth-plus-margin discipline, hit 155%.

The U.S. business is now more than 81% of total revenue, a concentration that would read as risk at most companies. At Palantir it functions as thesis: the AI sovereignty pitch lands hardest on domestic-defense and domestic-industrial buyers, and the numbers say those buyers are writing the checks Karp has been describing for two years.

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