PLTR earnings analysis
What we found in PLTR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Palantir delivered $1.935 billion of Q2 revenue, up 93% year over year and 18.7% sequentially, with GAAP operating margin expanding to 47% from 27% a year earlier. Commercial revenue grew 110% to $945.432 million and U.S. commercial revenue rose 149%, reinforcing management's view that U.S. demand will remain a major growth driver. Cash generation was strong, with $2.115 billion of six-month operating cash flow and $9.2 billion of liquidity, though elevated stock-based compensation, large-customer concentration, and heightened global AI/privacy regulation remain material risks.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth remained exceptional
- Q2 revenue was $1.935 billion, up $931.767 million, or 93%, from $1.004 billion a year earlier and up 18.7% from $1.630 billion in Q1 2026.
- Material margin and profit expansion
- GAAP gross margin was 85%, up 4 percentage points from 81% in Q2 2025, while operating margin reached 47% versus 27% a year ago. Operating income rose to $912.004 million from $269.317 million.
- EPS accelerated sequentially and year over year
- Diluted EPS was $0.41, up from $0.34 in Q1 2026 and $0.13 in Q2 2025. Net income attributable to common stockholders increased to $1.062 billion from $326.727 million.
- Commercial segment outgrew government
- Commercial revenue grew 110% year over year to $945.432 million, ahead of 79% growth in government revenue to $990.032 million. U.S. commercial revenue increased 149% to $764 million.
- Cash generation and liquidity strengthened
- Six-month operating cash flow rose to $2.115 billion from $849.514 million. The company ended Q2 with $9.2 billion of cash, cash equivalents, and short-term U.S. Treasury securities, no debt, and a fully undrawn $500 million revolver.
- U.S. adoption and customer base expanded
- Management expects U.S. customers to remain a significant growth source; U.S. customers represented 80% of six-month revenue and trailing-12-month U.S. revenue grew 99% to $4.8 billion. Customer count rose to 1,049 from 849.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Stock-based compensation rose sharply
- Stock-based compensation was $265.209 million in Q2, up 66% from $159.971 million a year earlier, representing 14% of quarterly revenue and remaining a meaningful dilution and GAAP-profitability consideration.
- Customer concentration and termination exposure
- The top three customers accounted for 16% of six-month revenue, while contracts generally run one to five years and many permit termination for convenience. Customer concentration and termination rights can make revenue less durable than reported deal values imply.
- Privacy and AI regulation carries large penalties
- Updated privacy and AI regulatory disclosure increases compliance exposure: South Korea's revised PIPA framework permits administrative fines of up to 10% of total revenue, while the EU AI Act can impose penalties of up to €35 million or 7% of worldwide annual turnover.
- Equity investments can increase earnings volatility
- Strategic investments can increase earnings volatility: publicly traded equity securities were valued at $184 million and privately held securities at $167 million as of June 30, 2026. Q2 other income included gains, contributing $91.836 million versus $6.596 million a year ago.
- Cloud-cost and infrastructure dependency
- Cloud hosting is a growing cost and operational dependency. Q2 third-party cloud-hosting costs increased by $89 million year over year in cost of revenue, and management relies on providers including AWS and Microsoft.
- Geopolitical escalation remains an updated risk
- Management notes geopolitical escalation, including recent Iran-related hostilities, could disrupt technology and global economic conditions. Although current Ukraine, Israel, and broader Middle East operations are not material, 20% of six-month revenue was generated outside the U.S.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.41
- Gross margin
- 85.0%
- Operating margin
- 47.0%
- Segment
- Government revenue: $990.032 million, up $437.049 million (79%) year over year.
- Segment
- Commercial revenue: $945.432 million, up $494.718 million (110%) year over year.
What they said about what is next.
The 10-Q does not provide explicit quantitative revenue, EPS, operating-income, or free-cash-flow guidance; quantitative outlook was provided separately in the earnings release/call.
The filing reads better than the one before it.
What came before.
- 10-Q · May 4, 2026
- Palantir Technologies reported a robust Q1 2026, showcasing an 85% year-over-year revenue growth to $1.63 billion, beating consensus estimates. Diluted EPS also surpassed expectations at $0.33, reflecting increased…
- 10-K · February 17, 2026
- Palantir scaled materially in 2025, reporting $4.5 billion of revenue and growing its customer base to 954 as of December 31, 2025. Margins and cash generation expanded sharply (Q4 2025 gross margin 84.7% and operating…
- 10-Q · August 5, 2025
- Palantir Technologies Inc. reported strong Q2 2025 results with revenues of $1.0 billion, reflecting an increase of 47.8% year-over-year. The company achieved an EPS of $0.16, surpassing estimates by 33.3%. Notable…
- 10-K · February 18, 2025
- Palantir positions itself as a platform company (Gotham, Foundry, Apollo, AIP) focused on embedding AI into customer operations; it reported $2.9 billion of revenue in 2024 and had 711 customers as of December 31, 2024.…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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