Overview
- Palantir reported a very strong Q2 FY2026 with overall revenue up about 93% and U.S. commercial sales rising roughly 149%, and it raised full‑year U.S. commercial guidance above $3.42 billion.
- Management is positioning the firm around an “AI sovereignty” strategy that links its Foundry, AIP and Ontology products to customer data and processes so organizations can run, audit and control third‑party models in‑house.
- Wall Street has responded with higher price targets and reaffirmations, including DA Davidson lifting its target to $250 and Rosenblatt keeping a $225 Buy target, while some analysts warn that valuation multiples are very high.
- The FAA has rolled out its SMART traffic system and the main $875 million SMART contract went to Air Space Intelligence, leaving any Palantir role in that program unconfirmed and described by analysts as possible follow‑on or complementary work rather than a guaranteed award.
- Investors and analysts point to new positives—GAAP profitability, a strong Rule‑of‑40 score and rapid commercial traction—alongside risks from lofty forward P/E ratios, customer concentration and a modest drop in hedge fund ownership between Q1 and Q2 2026.