NEW YORK, August 4, 2026, 18:57 EDT
- Palantir ended U.S. cash trading at $162.66, climbing 29.45%. The stock then slipped 1.93% to $159.52 in after-hours activity.
- Revenue for the second quarter increased by 93% to $1.935 billion. U.S. commercial revenue surged 149%, and the adjusted operating margin stood at 62%.
- An estimated $88.8 billion in equity value was added with Tuesday’s gain. Annual revenue guidance midpoint increased by just $498 million.
Palantir Technologies Inc. NASDAQ:PLTR gained roughly $88.8 billion in implied equity value on Tuesday. The company increased its annual revenue guidance by $498 million at the midpoint.
This amounts to about $178 in market value for every $1 increase in projected 2026 sales. The market is factoring in continued growth beyond this year’s projections.
Palantir ended Tuesday trading at roughly 47.9 times its updated 2026 revenue midpoint. The valuation stood at approximately 84.9 times projected adjusted free cash flow. These figures are based on Palantir’s second-quarter basic share count.
| Market measure | Reading | Comparison |
|---|---|---|
| Regular session closing price | $162.66 | Up 29.45% |
| After hours, 18:47 EDT | $159.52 | Down 1.93% |
| Regular session trading volume | 174.5 million | 4.2 times the 65-day average |
| Previous week, July 27-31 | Gained 0.1% | From $122.92 to $123.06 |
| Week to date, through Tuesday | Up 32.2% | From $123.06 to $162.66 |
FactSet data used for weekly returns and volume multiple are reported by the Wall Street Journal.
Palantir recorded its biggest one-day percentage increase since February 2024 as the stock surged. The rise coincided with a widespread advance in technology shares that pushed the Nasdaq Composite up 2.59%.
The quarter surpassed Wall Street’s main estimates by significant margins. Guidance for the third quarter was also approximately 8% higher than the LSEG consensus.
| Second-quarter measure | Reported | Comparison |
|---|---|---|
| Revenue | $1.935 billion | Rose 93% from a year ago; 7.5% higher than consensus |
| Adjusted EPS | $0.41 | Came in 17.1% above consensus |
| U.S. commercial revenue | $764 million | Jumped 149%; accounted for 39.5% of total revenue |
| U.S. government revenue | $809 million | Increased 90%; comprised 41.8% of total revenue |
| Estimated non-U.S. revenue | $362 million | Made up 18.7% of total revenue |
| Adjusted operating margin | 62% | Was 46% a year ago |
| Adjusted free-cash-flow margin | 63% | Compared with 57% in the previous year |
| Q3 revenue guidance midpoint | $2.162 billion | 8.1% higher than consensus |
Initial reporter estimate subtracts disclosed U.S. revenue from total. Consensus figures are based on LSEG forecasts.
The revenue profile is now largely domestic, with U.S. clients accounting for roughly 81% of sales in the second quarter. These sales were nearly equally divided between government and commercial contracts.
This focus drove strong growth. However, upcoming performance will rely more heavily on U.S. business AI integration and federal purchasing.
Profit conversion stayed notably high. GAAP operating margin hit 47%, even with $265 million in stock-based compensation. That compensation made up roughly 13.7% of revenue, compared with 15.9% a year earlier.
Management lifted profit guidance at a quicker pace than its sales outlook. The midpoint for adjusted operating income rose by 10.1%, while revenue guidance advanced by 6.5%.
| 2026 outlook | Previous | New | Midpoint or floor change |
|---|---|---|---|
| Revenue | $7.650-$7.662 billion | $8.150-$8.158 billion | +$498 million; +6.5% |
| U.S. commercial revenue | More than $3.224 billion | More than $3.424 billion | +$200 million; +6.2% |
| Adjusted operating income | $4.440-$4.452 billion | $4.889-$4.897 billion | +$447 million; +10.1% |
| Adjusted free cash flow | $4.2-$4.4 billion | $4.5-$4.7 billion | +$300 million; +7.0% |
Reporter calculations of midpoint changes are based on Palantir’s filings for the first and second quarter.
Chief Executive Alex Karp stated that demand for AI sovereignty “has now been unleashed.” Emarketer analyst Jacob Bourne described Palantir as the “clearest counterexample” to assertions that enterprise AI remains stuck in the pilot phase. Securities and Exchange Commission
Contract metrics backed up that perspective. Palantir secured $3.373 billion in total contract value, an increase of 49%. Remaining deal value for U.S. commercial climbed 124% to $6.238 billion.
The valuation now counts on those contracts translating quickly into revenue. It also expects present margins to hold steady.
| Valuation bridge | Approximate result |
|---|---|
| Closing share price | $162.66 |
| Q2 basic average shares outstanding | 2.400 billion |
| Estimated equity valuation | $390.4 billion |
| Midpoint for 2026 revenue forecast | $8.154 billion |
| Price to projected revenue | 47.9 times |
| Midpoint for adjusted free cash flow | $4.600 billion |
| Price to guided adjusted FCF | 84.9 times |
| Equity market value gained on Tuesday | $88.8 billion |
| Increase in revenue outlook | $498 million |
| Market value gained per $1 of higher outlook | $178 |
Early estimates by the reporter. The implied equity value is based on the basic weighted-average shares for the quarter, not the fully diluted figure.
Analyst responses were similarly split. Supporters highlighted Palantir’s unusual blend of rising revenue paired with solid profitability. Analysts with a more cautious stance emphasized concerns around international expansion and a high valuation that leaves little margin for error.
Risks: The United States accounted for over 80% of quarterly revenue. Pushback from Europe, termination clauses for customers, and the company’s elevated valuation may heighten the impact of any deceleration. Stock-based pay continues to be a significant factor.
The prior week closed with little movement. Looking ahead, investors are set to gauge if earnings revisions will sustain Tuesday’s move above $143.28. Early after-hours trading indicated profit-taking emerged swiftly.
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