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Palantir Posts 'Otherworldly' Quarter and Lifts 2026 Guidance as Stock Soars

Management says accelerating U.S. commercial demand for its 'sovereign AI' platform and a record backlog underpin a much stronger outlook for revenue and cash flow.

Overview

  • The company reported roughly $1.94 billion in Q2 revenue, a 93% year‑over‑year gain, and about $1.22 billion in adjusted free cash flow.
  • Palantir raised full‑year 2026 revenue guidance to about $8.15–8.158 billion and boosted adjusted operating income and free‑cash‑flow targets.
  • Executives credited rapid U.S. commercial adoption of AIP and the firm's positioning as a 'sovereign AI' provider for the surge in demand.
  • Deal activity was unusually strong with 220 contracts of $1 million or more, a U.S. commercial total contract value near $2.1 billion, and remaining deal value around $6.2 billion.
  • Investors sent the stock up about 27–30% after the report, prompting several analyst upgrades but leaving others wary of the high valuation and U.S. revenue concentration.