NEW YORK, August 4, 2026, 04:21 EDT
- Shares were priced at $144.74 ahead of Tuesday’s session, marking a 15.2% increase from Monday’s close.
- Roughly 90% of Palantir’s yearly revenue growth came from U.S. clients, according to disclosed segment information.
- Early trading indicated a valuation near 42.6 times the midpoint of projected 2026 sales. This figure is a preliminary calculation.
Shares of Palantir surged 15.2% in premarket trading after the company posted a 93% rise in quarterly revenue and raised its annual guidance.
The key point for investors is within that expansion. Roughly 90% of the $932 million rise in yearly revenue came from U.S. clients. The U.S. now represents 81.3% of sales for the quarter.
Cash flow benefited from the increase as well. The adjusted free-cash-flow margin rose to 63%. However, Palantir’s premarket valuation stands at almost 43 times its projected sales.
The main U.S. cash session ended at 04:21 EDT. Nasdaq’s premarket session remained active. Official trading hours resume at 09:30 EDT.
The key figures released surpassed the Google Finance consensus. Revenue exceeded estimates by 6.85%, and adjusted earnings came in 18.27% above forecasts.
| Q2 measure | Reported | Consensus | Beat |
|---|---|---|---|
| Revenue | $1.935 billion | $1.81 billion | 6.85% |
| Adjusted EPS | $0.41 | $0.35 | 18.27% |
| Revenue growth | 93% | 81% implied | 12 points |
| Adjusted operating margin | 62% | 46% a year ago | 16 points |
Chief Executive Alex Karp described the quarter as “otherworldly.” GAAP operating margin was 47%, up from 27% in the same period the previous year. Adjusted operating income climbed to $1.194 billion, more than doubling. SEC
The increase in revenue was uneven. U.S. revenue climbed around $840 million, while international revenue was up by about $92 million.
| Revenue source | Q2 2025 | Q2 2026 | Annual increase | Share of total increase |
|---|---|---|---|---|
| U.S. commercial | $306 million | $764 million | $458 million | 49% |
| U.S. government | $426 million | $809 million | $383 million | 41% |
| Outside the U.S. | $271 million | $362 million | $91 million | 10% |
| Total | $1.004 billion | $1.935 billion | $932 million | 100% |
Derived by subtracting reported U.S. revenue from total revenue. Small discrepancies may occur due to rounding.
Bookings bolster the short-term outlook. The value of U.S. commercial contracts surged 153% to $2.132 billion. Remaining deal value hit $6.238 billion. Palantir secured 73 contracts each valued at no less than $10 million.
Jacob Bourne, eMarketer analyst, described Palantir as “the clearest counterexample” to arguments that enterprise AI is unable to expand past pilot stages. Reuters
Management linked the quarter’s performance to a broader 2026 strategy. The midpoint for yearly revenue was lifted by $498 million. U.S. commercial baseline revenue climbed an additional $200 million.
| Measure | Previous view or benchmark | New company view | Difference |
|---|---|---|---|
| 2026 revenue | $7.650-$7.662 billion | $8.150-$8.158 billion | $498 million increase at midpoint |
| U.S. commercial revenue | More than $3.224 billion | More than $3.424 billion | Up at least $200 million |
| Q3 revenue | $2.00 billion LSEG consensus | $2.160-$2.164 billion | Approximately 8.1% higher than consensus |
| Q3 sequential growth | Q2 revenue of $1.935 billion | $2.162 billion midpoint | Up about 11.7% |
Palantir posted first-half revenue of $3.568 billion. The midpoint guidance for the full year signals approximately $2.424 billion in fourth-quarter revenue. Achieving this early projection would involve around 12% sequential growth from the Q3 midpoint.
The premarket increase contributed roughly $45.8 billion in market value, raising the projected sales multiple to 42.6 times from 36.9.
| Valuation measure | Monday close | Tuesday premarket | Change |
|---|---|---|---|
| Share price | $125.65 | $144.74 | 15.2% |
| Implied equity value | $301.2 billion | $347.0 billion | $45.8 billion |
| Equity value/2026 sales midpoint | 36.9 times | 42.6 times | 5.6 turns |
| Price compared to 52-week high | 39% lower | 30% lower | 9 points |
Premarket equity valuation and ratios are initial estimates based on Monday’s disclosed market capitalization.
Improved cash conversion helps justify the premium. Adjusted free cash flow totaled $1.220 billion. Stock-based compensation increased 66% to $265 million but grew at a slower pace than revenue. This accounted for 13.7% of sales, down from 15.9%.
Risks: The valuation offers limited cushion if U.S. demand decelerates. Calculations show revenue outside the U.S. rose by just 34%. Numerous contracts have termination rights and customer options could remain unexercised. Palantir is also dealing with the loss of a French intelligence contract and a legal dispute over a London police agreement.
Tuesday’s trading will reveal if forecast upgrades are in line with the premarket revaluation. The upcoming challenge is reaching Q3 revenue in the range of $2.160 billion to $2.164 billion.
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