Palantir grows 93 percent and the share jumps 29 percent in a day

Palantir Technologies generated revenue of 1.94 billion dollars in the second quarter of 2026, up 93 percent from around one billion dollars a year earlier. Analysts had expected 1.80 billion dollars.

The share rose 29.5 percent on the day after the release. Only once in the history of the company was the move larger, on 6 February 2024 with 30.8 percent.

Earnings per share came in at 41 cents against an expected 34.6 cents. Net profit reached 1.07 billion dollars after around 329 million dollars in the year earlier quarter. It was the ninth beat in a row.

The short version

• Revenue rose 93 percent in the second quarter of 2026 to 1.94 billion dollars, against an expected 1.80 billion.
• The share rose 29.5 percent on the day after the release, the second largest move in the history of the company.
• Revenue from American corporate customers rose 149 percent to 764 million dollars.

Corporate business grows 149 percent

The breakdown shows where the growth comes from. Revenue from corporate customers in the United States rose 149 percent to 764 million dollars. Business with government agencies grew 90 percent to 809 million dollars.

For the full year the company expects more than 3.224 billion dollars in business with American corporate customers. Free cash flow is put at 4.2 to 4.4 billion dollars.

In the first quarter revenue had already grown 85 percent, with American corporate business up 133 percent. That was the third triple digit increase in a row.

One measure analysts highlight is the sum of growth rate and profit margin. It reached 155 percent, which counts as exceptional at this size of company.

The explanation from the chief executive

Alex Karp traces the development back to a particular motive among his customers. Companies want to keep their data away from the operators of large language models.

In a letter to shareholders he wrote that customers had refused to become vassal states of the language labs. Every organisation is currently waking up to the risks of handing the developers of the models the keys to their own facilities.

Analysts at Citi read the results as easing doubts about the competitive position, because the demand for data protection sets the company apart from other providers.

In the government business a system for evaluating battlefield data is a driver. Its use doubled in the first quarter and quadrupled over twelve months. A contract with an American intelligence agency is set to continue after the resolution of a procurement challenge.

The share was down on the year despite record figures

The starting position before the release is worth noting. On the previous day the share was down 29 percent for 2026 while the American benchmark index rose. It stood around 40 percent below its peak of November 2025 at 207.52 dollars.

The reason lies in the valuation. At a price around 122 dollars that corresponded to about 61 times revenue and 149 times profit over the past twelve months.

Exactly that pattern had already shown in May. Back then the company beat expectations with 33 cents instead of 27 cents per share, and the share still fell 14 percent afterwards.

After the August release the paper traded at around 125.65 dollars. Baird named a price target of 200 dollars, and the analyst average stood at 181.24 dollars.

That leaves a question in the air that arises with several technology stocks this year. Growth and share price move apart, because a considerable part of the expectation was already in the price.

Frequently asked questions

Where does the growth at Palantir come from

Revenue from corporate customers in the United States rose 149 percent to 764 million dollars. Business with government agencies grew 90 percent to 809 million dollars. For the full year the company expects more than 3.224 billion dollars in business with American corporate customers.

How does the chief executive explain the demand

Alex Karp traces it to companies wanting to keep their data away from the operators of large language models. In a letter to shareholders he wrote that customers had refused to become vassal states of the language labs.

Why was the share down on the year despite record figures

The reason lies in the valuation. On the day before the release the share was down 29 percent for 2026. At a price around 122 dollars that corresponded to about 61 times revenue and 149 times profit over the past twelve months.

This analysis is for information only and is not investment advice.