Palantir Technologies reported second-quarter revenue of $1.94 billion, beating consensus estimates of $1.8 billion, with US commercial revenue surging 149 percent year-over-year to $764 million.
Adjusted operating income reached $1.19 billion against an estimate of $1.06 billion. The company's Rule of 40 score, which measures the sum of revenue growth rate and operating margin, climbed to 155 percent. Total contract value across all segments grew 49 percent year-over-year to $3.4 billion, with US commercial TCV rising 153 percent to $2.1 billion.
US revenue overall reached $1.6 billion in the quarter, up 115 percent from the prior year, split between commercial and government segments. US government revenue grew 90 percent to $809 million. The company attributed the commercial acceleration to what it called the sovereign AI revolution.
Palantir raised its full-year 2026 revenue guidance to $8.15 billion to $8.16 billion from prior guidance, above consensus estimates of $7.69 billion. The company projects US commercial revenue will exceed $3.4 billion for the full year, representing growth of more than 134 percent. Adjusted operating income guidance for the year climbed to $4.89 billion to $4.90 billion from prior guidance, against consensus of $4.46 billion. Adjusted free cash flow guidance was set at $4.5 billion to $4.7 billion, above the estimate of $4.27 billion.
US commercial now accounts for roughly 38 percent of the company's quarterly revenue. The commercial division's remaining deal value stood at $6.2 billion, up 124 percent year-over-year, indicating a backlog for future quarters.
Palantir's second-quarter adjusted earnings per share of $0.41 beat the consensus of $0.35. The company guided third-quarter revenue to $2.16 billion to $2.164 billion, above the $2 billion estimate, with adjusted operating income projected at $1.29 billion to $1.30 billion against the estimate of $1.14 billion.
Palantir's commercial revenue growth rate of 149 percent outpaces its government segment expansion of 90 percent by 65 percentage points. The adjusted operating margin implied by full-year guidance approaches 60 percent, a level rarely sustained by software companies at scale.
The next data point that would test the company's guidance is third-quarter results, expected in November, where the $2.16 billion revenue midpoint would need to materialize and adjusted operating income would need to remain above $1.29 billion.
