Overview
- Palantir posted a blowout Q2 with revenue up about 93% to $1.94 billion and management raised FY2026 revenue guidance to roughly $8.15 billion, triggering the market move.
- The company said U.S. commercial revenue climbed 149% to $764 million, U.S. government revenue rose 90% to $809 million, total contract value reached $2.1 billion, and its Rule of 40 hit about 155%.
- Palantir reported Q2 free cash flow of $1.22 billion and set FY adjusted free cash flow guidance at $4.5–$4.7 billion, showing rare high growth coupled with strong cash generation.
- Investors pushed the stock sharply higher on Tuesday and analysts split on the outlook, with some firms upgrading targets while others warned that very high valuation multiples leave little room for error.
- By contrast, Snowflake’s most recent quarter showed steady 33.5% growth with 126% net revenue retention and $9.21 billion RPO, but the company is spending heavily on a large AWS deal, deeper OpenAI ties and acquisitions that keep GAAP losses while aiming to expand its moat.