Palantir Technologies Inc.

Second-quarter revenue was $1.935 billion, up 93% year over year and 19% sequentially. U.S. revenue was $1.573 billion, up 115% year over year and 23% sequentially; U.S. commercial revenue was $764 million, up 149% year over year and 28% sequentially; and U.S. government revenue was $809 million, up 90% year over year and 18% sequentially. Adjusted gross margin was 86%; adjusted operating income was $1.194 billion with a 62% margin; GAAP operating income was $912 million with a 47% margin; GAAP net income was $1.062 billion with a 55% margin; and GAAP and adjusted EPS were both $0.41. Adjusted free cash flow was $1.22 billion, up 115% year over year, and cash from operations was $1.216 billion. For the third quarter of 2026, management expects revenue of $2.16 billion to $2.164 billion and adjusted income from operations of $1.292 billion to $1.296 billion. For full-year 2026, revenue guidance was raised to $8.15 billion to $8.158 billion, U.S. commercial revenue guidance to in excess of $3.424 billion, adjusted income from operations to $4.889 billion to $4.897 billion, and adjusted free cash flow to $4.5 billion to $4.7 billion.

Alex Karp said the results reflect a major shift toward sovereign AI and customer urgency around owning data, logic, actions, and security rather than relying on third-party model providers. His tone was highly confident and expansive, arguing that Palantir is aligned with customers in a way that creates real enterprise value rather than dependency. He also emphasized the company’s role in the U.S. and allied governments, and said Palantir is entering a period of much larger scale.

Dave Glazer highlighted record financial performance, including $1.22 billion in adjusted free cash flow, 63% adjusted free cash flow margin, $1.194 billion in adjusted operating income, and $1.062 billion in GAAP net income. He noted adjusted gross margin was 86%, and said the Q2 margin reflected higher cloud hosting costs for one government customer, which he said should improve time to value and efficiency going forward. On capital and liquidity, he said the company ended the quarter with $9.2 billion in cash, cash equivalents, and short-term U.S. Treasury securities, and reiterated full-year guidance raises across revenue, operating income, and free cash flow.

Analysts focused on why customers are now prioritizing sovereignty, whether Palantir can swap models if a frontier model becomes unavailable, and what the boot camp/customer conversations revealed. Management said customers increasingly want control over their own benchmarks, weights, and workflow economics, not just access to a model, and that Palantir’s platform can support switching models as needed. They also said the sovereign AI boot camp drew broad interest from executives and operators, with older customers expanding beyond Foundry into Ontology and the sovereign AI stack.