Palantir Q2 Revenue Hits $1.94B With 93% YoY Growth: US Commercial Business Up 149%

Palantir just delivered a quarter that sent Wall Street scrambling to raise price targets — Q2 revenue surged 93% year over year, and US commercial revenue nearly tripled.

Three Key Takeaways

Revenue of $1.935 billion, up 93% YoY and 19% sequentially. US revenue reached $1.573 billion, up 115% year over year. US commercial revenue hit $764 million, up 149% YoY and 28% sequentially. US government revenue came in at $809 million, up 90% YoY. This is the highest year-over-year growth rate in Palantir's history.

Full-year guidance raised to $8.154 billion. Previous guidance was $7.65 billion; the company bumped it to $8.154 billion, implying 82% full-year growth. US commercial revenue guidance was raised from $3.22 billion to over $3.42 billion. Adjusted operating income hit $1.194 billion at a 62% margin. The Rule of 40 score came in at 155% — anything above 40% is typically considered excellent.

220 seven-figure deals, AIP winning head-to-head against frontier labs. Palantir closed 220 deals worth $1 million or more this quarter, including 98 above $5 million and 70 above $10 million. On the earnings call, the company disclosed that a major Silicon Valley tech company chose Palantir's AIP platform after a bake-off against multiple frontier AI labs, signing a $10 million annual contract.

WangDou's Take

A 93% growth rate on a company approaching $8 billion in annual revenue is borderline absurd — this is not a seed-stage startup doubling off a tiny base. Palantir's AIP playbook is essentially "let us set you up for a week for free, get you hooked, then charge you" — the boot camp model. It sounds like an enterprise software dealer handing out free samples, but the numbers prove it converts: 149% US commercial growth means companies are not dipping a toe, they are moving budgets away from other vendors. As for that Rule of 40 score of 155% — the last company to put up numbers like that at this scale was probably AWS in the early cloud era.

Source: CNBC, GuruFocus, Yahoo Finance