Palantir Technologies Inc. Q2 2026 Earnings Recap

Shares surged 32.2% as Palantir delivered exceptional revenue growth driven by accelerating U.S. commercial and government business, highlighted by record deal sizes and impressive free cash flow generation.

Key Takeaways

• Revenue grew 93% year-over-year, led by a 115% increase in the U.S. business, which now accounts for over 81% of total revenue.
• U.S. commercial revenue accelerated by 149% year-over-year and 28% sequentially.
• U.S. government revenue rose 90% year-over-year and 18% sequentially, sustaining strong momentum across defense and civil segments.
• Closed 220 deals worth $1 million or more, including 98 deals over $5 million and 73 deals exceeding $10 million, all record highs.
• Generated $1.22 billion in adjusted free cash flow and achieved a Rule of 40 score of 155%, underscoring operational efficiency amid rapid growth.