Palantir Technologies just reminded Wall Street what a growth stock looks like when the wind is at its back. The company reported Q2 revenue of $1.935 billion, a 93% increase from the same period last year, comfortably beating analyst expectations of $1.801 billion. Shares popped roughly 13% in after-hours trading on Monday.
GAAP net income landed at $1.062 billion, or $0.41 per share, versus the $0.35 consensus estimate. That’s a 55% net income margin.
The numbers behind the hype
The real star of the quarter was Palantir’s US commercial business. That segment surged 149% year-over-year to $764 million, driven by what CEO Alex Karp described as robust demand for AI-integrated solutions across corporate America.
The deal flow was equally aggressive. Palantir closed 220 contracts worth $1 million or more during the quarter. Of those, 98 exceeded $5 million and 73 surpassed $10 million. Total contract value hit $3.373 billion, a 49% increase from a year ago.
Palantir also raised its full-year 2026 revenue guidance to a range of $8.150 billion to $8.158 billion, representing roughly 82% growth at the midpoint. The US commercial revenue target alone was bumped above $3.424 billion, which would represent 134% year-over-year growth if achieved.
Karp highlighted the company’s Rule of 40 score of 155%. The Rule of 40 is a software industry benchmark where a company’s revenue growth rate plus profit margin should exceed 40%. Palantir nearly quadrupled that threshold.
Palantir ended the quarter sitting on $9.2 billion in cash, cash equivalents, and short-term US Treasury investments. Adjusted free cash flow margin came in at 63%.
Why crypto investors should care
Palantir is not a crypto company. But it maintains its Foundry for Crypto product, a suite of advanced analytics tools built specifically for cryptocurrency firms. The Q2 earnings call did not announce any major new crypto-native protocol integrations.
What investors should watch next
The raised guidance is the most forward-looking signal here. Palantir essentially told the market it expects the second half of 2026 to be even stronger than the first, which is a bold call given that the company is already growing at 93% year-over-year.