Gotrade News: Palantir (PLTR) shares jumped about 15% on Tuesday after the software company reported another quarter of rapid growth and raised its full-year forecast. The stock closed near $125.65, according to 24/7 Wall St. The rally followed second-quarter revenue that nearly doubled from a year earlier, driven by rising demand from both corporate and government customers in the United States.
Revenue Nearly Doubles
Palantir generated $1.94 billion in second-quarter revenue, up 93% year over year and 19% from the previous quarter, according to CNBC. The result came in above Wall Street's estimate of roughly $1.81 billion.
Earnings also beat expectations. Palantir reported adjusted earnings of $0.41 per share, compared with analysts' estimates of around $0.34 to $0.35 per share.
The company closed $3.37 billion in total contract value during the quarter, up 49% from a year earlier. It signed 220 deals worth at least $1 million, including 73 valued at $10 million or more.
Total contract value refers to the potential lifetime value of signed agreements. It is not the same as revenue already recognized, as some contracts include optional periods or provisions that allow customers to terminate them.
U.S. Commercial Business Leads the Quarter
Palantir's U.S. commercial division remained its fastest-growing business. Revenue from American corporate customers jumped 149% to $764 million as more companies adopted the firm's Artificial Intelligence Platform, while U.S. government revenue rose 90% to $809 million. Combined U.S. revenue reached $1.57 billion, more than double the amount recorded a year earlier.
Palantir also booked a record $2.13 billion in U.S. commercial contract value. The figures suggest that demand for its platform is continuing to move beyond trials and into larger customer agreements.
Growth and Profitability
Alongside the revenue growth, Palantir reported a GAAP operating margin of 47% and an adjusted operating margin of 62%. The company said its Rule of 40 score reached 155%. The software-industry benchmark combines revenue growth with a measure of profitability, although Palantir calculates the figure using adjusted operating margin, which excludes certain expenses such as stock-based compensation and related payroll taxes.
For that reason, the score may not be directly comparable with figures reported by other software companies.
Full-Year Forecast Raised
Management now expects 2026 revenue of between $8.15 billion and $8.158 billion, representing growth of about 82%, according to Seeking Alpha. Palantir also raised its U.S. commercial revenue forecast to more than $3.42 billion, which would amount to growth of at least 134%. For the third quarter, the company expects revenue of between $2.16 billion and $2.164 billion.
The stronger outlook shows that management expects the current momentum to continue beyond the latest quarter. As with any corporate guidance, however, the forecast remains an estimate and may change with customer demand, contract timing, competition, and broader economic conditions.
Strong Results, Expensive Stock
The report eased some concerns that Palantir could lose ground to newer AI companies. Analysts at William Blair highlighted the company's unusual combination of rapid growth and strong profitability. Morgan Stanley was more measured, keeping an equal-weight rating and a $205 price target. Others were more cautious still: Jefferies cited Palantir's high valuation and slower international growth as reasons to prefer other large technology companies.
Even before the earnings report, Palantir was trading at roughly 41 times expected 2026 sales. Tuesday's roughly 15% rally pushed the valuation higher, leaving investors to weigh whether the company's current growth rate is strong enough to support the premium.
| Metric | Q2 2026 | Change |
|---|
| Total revenue | $1.94 billion | +93% YoY |
| U.S. commercial revenue | $764 million | +149% YoY |
| U.S. government revenue | $809 million | +90% YoY |
| Adjusted EPS | $0.41 | Above estimates |
| Total contract value | $3.37 billion | +49% YoY |
| FY2026 revenue guidance | $8.15 to $8.158 billion | About +82% YoY |
Palantir's latest quarter showed that demand for its AI software continues to translate into revenue, contracts, and profit. The results were strong. The question still hanging over the stock is how long the company can maintain that pace, and how much future growth has already been reflected in its share price.
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