Palantir Revenue Jumps 93% in Second Quarter to $1.935 Billion
Key Facts
Palantir had not reported third-quarter results as of October 28; its latest published figures were for the second quarter, when revenue rose to $1.935 billion, up 93% year over year and 19% from the previous quarter. The results were in the company’s statement issued on August 3, before a trading session in which its stock rose sharply. The figures show simultaneous acceleration in annual and quarterly revenue, alongside an expansion of activity in the U.S. market. Chief Executive Alex Karp said, "Demand for AI sovereignty has taken off." On October 28, investors were awaiting the next results, scheduled for November 2, so the second-quarter figures are not a new report on third-quarter performance.
U.S. activity drove much of the growth: the company’s U.S. revenue rose 115% year over year to $1.573 billion in the second quarter, and increased 23% from the previous quarter. U.S. commercial revenue jumped 149% year over year to $764 million, and 28% quarter over quarter. U.S. government revenue grew 90% year over year to $809 million, and 18% from the previous quarter. U.S. revenue was split between commercial and government activity, with both recording annual and quarterly growth. The results put accelerating commercial activity at the forefront of the company’s growth, while its government business also continued to expand.
Sales growth was accompanied by higher operating income and net income under generally accepted accounting principles. Palantir posted operating income of $912 million, equal to an operating margin of 47% of revenue, and net income of $1.062 billion, with a margin of 55%. These results correct an earlier draft that reported an operating loss; the published figure is positive operating income. The reported margins put profitability measures alongside revenue growth of 93%, presenting the quarter’s performance through both sales and the bottom line. The company reported these figures as part of its second-quarter results published on August 3.
Commercial activity was also reflected in contract figures: the company closed 220 deals during the quarter, each worth at least $1 million. The total value of closed contracts was $3.373 billion, up 49% year over year. The number of deals and the value of contracts provide additional measures alongside revenue growth, reflecting the scale of business the company contracted during the period. These figures come as U.S. commercial revenue was growing 149% year over year, according to the company’s results. Commenting on demand, Karp said, "Demand for AI sovereignty has taken off," linking his remarks to the company’s shift toward this field.
The second-quarter results announcement lifted the stock on August 4, when it jumped 29.5%, according to an Associated Press report, in a session that also saw the major U.S. indexes rise. The S&P 500 rose 1.8%, the Nasdaq Composite 2.6%, and the Dow Jones 1.7%, amid falling oil prices. The report linked Palantir’s gains to revenue growth and the company’s raised annual outlook, while other companies’ earnings also topped analysts’ expectations in the same session. In the latest session in EL7 data, the stock closed at $198.73 on October 27, then at $193.98 on October 28. The two closes reflect the stock’s movement on those days and do not establish that the second-quarter results caused its change on October 28, since third-quarter results had not yet been released.
Management raised its fiscal 2026 revenue outlook to a range of $8.150–$8.158 billion and set a third-quarter range of $2.160 billion to $2.164 billion. The annual and quarterly outlooks provide two benchmarks for comparison when the next report is released, following second-quarter revenue of $1.935 billion. The third quarter ended on September 30, and the company said its results would be released on Monday, November 2, after the U.S. market close. Palantir will also hold a webcast to discuss the results at 5:00 p.m. Eastern Time. That announcement will be the first published update on the company’s third-quarter performance in the schedule set out in its statement.