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For the second quarter of 2026 ended June 30, 2026, revenue grew 93% year over year to $1.94 billion and reported reached $912 million at a 47% margin.
Cash from operations was $1.22 billion at a 63% margin, showing that quarterly growth produced current cash output rather than only contract activity.
The key operating issue is whether Palantir can convert rapid commercial and government demand into lasting platform use across customer workflows.
Management raised full-year 2026 revenue guidance to between $8.15 billion and $8.16 billion, including U.S. Commercial revenue above $3.42 billion and growth of at least 134%. Delivering that growth requires retention, account expansion, successful deployment, and enough profitable usage to absorb long-term cloud-service commitments.
Palantir sells software that helps government and commercial organizations connect data with operating decisions and daily workflows. The platforms organize information, connect it to business processes, link artificial-intelligence tools to those processes, and deploy software across cloud, on-premises, and other computing environments.
Government customers use the software for defense, intelligence, and other public-sector needs. Commercial customers use it in industries such as manufacturing, healthcare, telecommunications, and financial services. These customer groups share complex data and operating problems, but their purchasing processes, budget cycles, and deployment requirements differ.
In 2025, government customers generated 54% of the company’s $4.5 billion of revenue and commercial customers generated 46%. Customers in the United States generated 74% of revenue, while customers abroad generated 26%.
Palantir earns revenue when customers deploy its software and expand its use across additional users, divisions, data sources, workflows, or platform capabilities. Average revenue from the company’s top twenty customers increased to $93.9 million in 2025 from $64.6 million in 2024. That increase indicates broader use among large accounts, while also making retention and account development important to future revenue stability.
The model depends on successful implementation and continued platform use. Revenue growth therefore comes from winning new customers and expanding deployments, while the economic test is whether broader use continues to generate revenue without a comparable increase in implementation and service costs.
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