Palantir Technologies reported robust second-quarter growth driven by accelerating demand across both its commercial and government businesses. Total revenue reached $1.94 billion, a 93% increase year over year and a 19% sequential rise. Following the earnings release, Palantir stock (PLTR) climbed 14.85% overnight to $144.31, building on a 2.10% gain during the prior session.

Strong US Demand Underpins Growth

US revenue totaled $1.57 billion during the quarter, reflecting a 115% annual increase and 23% growth from the previous quarter. Palantir provides data analytics platforms that support operational decision-making for commercial enterprises and government agencies worldwide. The company's Artificial Intelligence Platform (AIP), which helps organizations apply large language models to their proprietary data, has been central to expanding its commercial customer base amid broad enterprise AI adoption.

GAAP operating income reached $912 million, yielding a 47% margin. Adjusted operating income came in at $1.19 billion, pushing the adjusted operating margin to 62%. GAAP net income totaled $1.06 billion, representing a 55% margin. Diluted GAAP earnings were $0.41 per share, matching adjusted earnings for the period.

Cash generation remained strong, with cash from operations totaling $1.22 billion — a 63% margin. Adjusted free cash flow also reached $1.22 billion.

Commercial and Government Segments Expand in Tandem

US commercial revenue grew 149% year over year and 28% sequentially to $764 million. US government revenue rose 90% annually and 18% quarterly to $809 million, signaling balanced expansion across Palantir's primary domestic segments. Government revenue reflects Palantir's longstanding contracts with defense and intelligence agencies, while commercial growth has been driven by enterprises across multiple industries deploying AI-enabled analytics.

During the quarter, the company closed 220 contracts valued at $1 million or more. It also secured 98 contracts above $5 million and 73 contracts exceeding $10 million. Total contract value reached $3.37 billion, up 49% from the prior-year period.

US commercial contract value set a company record at $2.13 billion, a 153% increase year over year. Remaining US commercial deal value climbed to $6.24 billion, representing 124% annual growth and 27% quarterly growth — providing revenue visibility beyond the current quarter.

Raised Full-Year Guidance

Looking ahead, Palantir guided third-quarter revenue to a range of $2.16 billion to $2.164 billion, with adjusted operating income projected between $1.292 billion and $1.296 billion.

For the full year 2026, the company raised its revenue guidance to between $8.15 billion and $8.158 billion. US commercial revenue is expected to exceed $3.424 billion, reflecting growth of at least 134%. Adjusted operating income is forecast to reach $4.889 billion to $4.897 billion.

Palantir also increased its adjusted free cash flow guidance to a range of $4.5 billion to $4.7 billion and expects to maintain positive GAAP operating income and net income in every remaining quarter of the year.

The company ended June with $9.2 billion in cash and short-term Treasury securities, providing substantial capital for continued investment in product development and customer acquisition.