Palantir Technologies reported second-quarter fiscal 2026 revenue of $1.935 billion, a 93% increase year-over-year, according to the company's earnings release on Aug. 3. The result included commercial segment revenue of $945 million, up 90% year-over-year, and US commercial revenue of $1.573 billion, up 115% year-over-year. Earnings per share came in at $0.41, exceeding the Wall Street consensus of $0.34. The company generated $1.216 billion in cash from operations and held $9.2 billion in cash, equivalents, and short-term U.S. Treasury securities.
CEO Alex Karp recently criticized closed-weight AI models in his Q2 letter to shareholders, labeling them part of a "Token Industrial Complex." Karp accused these models of adding no real value, increasing enterprise costs, and potentially stealing intellectual property. He argued that this environment favors two specific layers: Nvidia's compute layer and Palantir's application layer. The distinction relies on model architecture; open-weight models allow users to download and modify trained parameters, while closed-weight models restrict users to sending inputs and receiving outputs without access to the underlying weights.
The risk of data leakage in closed systems has been acknowledged by industry figures, including Microsoft CEO Satya Nadella. Karp emphasized that proprietary data fed into closed models could be used by owners for retraining. Palantir's strategy involves building a Sovereign AI reference architecture that pairs Nvidia's Nemotron open models with Palantir's Ontology. This approach leverages the company's history with global intelligence agencies to protect data by running it on owned hardware.
Palantir Technologies develops software platforms for government agencies and businesses to manage and analyze large datasets. Its key products include Gotham for defense operations, Foundry for enterprise data management, and the Artificial Intelligence Platform for integrating large language models into workflows. The company, founded in 2003 and headquartered in Aventura, Florida, maintains a strategic collaboration with Nvidia to deliver an intelligent engine for sovereign environments.
Following the earnings report, PLTR stock gained over 50% in a month after being an underperformer until late June. The stock is up 18% in the last 12 months. Michael Burry had previously shorted the stock, but the recent performance reflects a shift in sentiment regarding enterprise data protection.
| Metric | Value | Change |
|---|---|---|
| Q2 FY2026 Revenue | $1.935 billion | +93% YoY |
| Commercial Revenue | $945 million | +90% YoY |
| US Commercial Revenue | $1.573 billion | +115% YoY |
| Adjusted Gross Margin | 86% | - |
| Adjusted Operating Margin | 62% | - |
Looking ahead, Palantir expects third-quarter fiscal 2026 revenue between $2.16 billion and $2.164 billion. Full-year fiscal 2026 revenue guidance stands at $8.15 billion to $8.158 billion, representing 82% year-over-year growth and the company's largest full-year revenue guidance increase to date. The full-year U.S. commercial revenue outlook was raised to more than $3.424 billion, implying at least 134% growth. Full-year adjusted income from operations is expected to be between $4.889 billion and $4.897 billion.
Analysts have updated their models post-earnings, with Citi setting a bullish price target of $245, offering 32% upside from current levels. Among 29 Wall Street analysts covering PLTR, the consensus rating is "Moderate Buy." This includes 21 "Strong Buy" ratings, six "Hold" ratings, one "Moderate Sell," and one "Strong Sell." The average price target is $198.41, near the current trading price, while the high target of $255 offers nearly 37% upside.