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…
Earnings analysis · 10-Q
PLTR earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
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…
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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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.41
What stood out
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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.
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.