Palantir Hits $1.935B Quarterly Revenue at 93% Growth

Palantir reported revenue of $1.935 billion for the quarter, up 93% year-over-year. The result marked the twelfth consecutive quarter of accelerating growth. Full-year guidance was raised from $7.65 billion to $8.15 billion. Net revenue retention reached 157% and the Rule of 40 score reached 155% according to SaaStr.

Revenue Growth at Scale

Revenue grew 93% year-over-year to $1.935 billion and 19% quarter-over-quarter. U.S. revenue grew 115% year-over-year to $1.573 billion, representing more than 81% of total revenue. U.S. commercial revenue grew 149% year-over-year to $764 million. U.S. government revenue grew 90% year-over-year to $809 million. The company guided Q3 revenue between $2.160 billion and $2.164 billion and full-year 2026 revenue between $8.150 billion and $8.158 billion.

Customer Expansion Metrics

Palantir reported 1,049 total customers. Commercial customers totaled 870 and U.S. commercial customers totaled 653. Customer count grew 24% while revenue grew 93%. Net dollar retention was 157%, up 700 basis points sequentially from 150% in the prior quarter. The company stated that almost none of the growth came from new logo acquisition.

Margin and Cash Flow Results

GAAP operating income reached $912 million at a 47% margin. Adjusted operating income reached $1.194 billion at a 62% margin. Adjusted free cash flow reached $1.220 billion at a 63% margin. The company held $9.2 billion in cash and short-term Treasuries with no debt. Rule of 40 performance came in at 155%, up 10 points from the prior quarter according to SaaStr.