Latest quarter
Palantir reported Q2 FY2026 revenue of $1.9 billion, compared with the consensus of $1.8 billion, while adjusted EPS of $0.41 exceeded the consensus of $0.35. The company reported diluted EPS of $0.41, versus $0.13 in Q2 FY2025. Revenue increased 92.8% from a year earlier, and the filing says commercial-customer revenue increased 110% while government-customer revenue increased 79%.
The filing says U.S. commercial revenue was $764 million, up from $306 million a year earlier, and attributes increases from existing customers generally to greater adoption of its products and services. Palantir reported gross margin of 84.7%, compared with 80.8% a year earlier, and operating margin of 47.1%, compared with 26.8%. The company reported free cash flow of $1.2 billion, versus $531.6 million in Q2 FY2025. Palantir had guided for about $1.8 billion in Q2 revenue, and its reported $1.9 billion was above that outlook.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $1.9 billion | $1.0 billion | 92.8% |
| Diluted EPS | $0.41 | $0.13 | 215.4% |
| Gross margin | 84.7% | 80.8% | 3.9 percentage points |
| Operating margin | 47.1% | 26.8% | 20.3 percentage points |
| Free cash flow | $1.2 billion | $531.6 million | 126.0% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.41 | $0.35 | Beat by 17.1% |
| Revenue | $1.9 billion | $1.8 billion | Beat by 7.16% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
No transcript or other account of Palantir’s latest earnings call was available. As a result, no call commentary is available on demand, pricing, margins, investment, competition, the quarter ahead, analyst questions, or management’s responses.
Guidance
Palantir raised its FY2026 revenue guidance to between $8.150 billion and $8.158 billion from $7.65 billion to $7.66 billion. The company also said it was raising FY2026 adjusted income from operations guidance to between $4.889 billion and $4.897 billion, adjusted free cash flow guidance to between $4.5 billion and $4.7 billion, and U.S. commercial revenue guidance to more than $3.424 billion.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Operating income, GAAP | FY2026 | Palantir expects GAAP operating income in each quarter of FY2026. | — | — |
| Free cash flow, non-GAAP | FY2026 | $4.5 billion–$4.7 billion | — | New |
| Operating income, non-GAAP | FY2026 | $4.9 billion–$4.9 billion | — | New |
| Revenue, U.s. Commercial | FY2026 | $3.4 billion | — | New |
| Revenue | FY2026 | $8.2 billion–$8.2 billion | — | New |
| Operating income, non-GAAP | Q3 FY2026 | $1.3 billion–$1.3 billion | — | New |
| Revenue | Q3 FY2026 | $2.2 billion–$2.2 billion | — | New |