Palantir Technologies closed 220 transactions worth at least $1 million during the second quarter of 2026 as demand for its Artificial Intelligence Platform accelerated across commercial and government customers. Of those transactions, 98 were worth at least $5 million and 73 were worth at least $10 million.
Transactions worth at least $10 million represented approximately one-third of Palantir’s disclosed million-dollar deals.
The results indicate that the company’s growth is increasingly being supported by large enterprise deployments rather than relying solely on smaller pilot programs or initial customer engagements.
Total revenue increased 93% year over year and 19% sequentially to $1.94 billion.
Palantir attributed the acceleration primarily to continued growth across its U.S. operations.
U.S. revenue increased 115% to approximately $1.57 billion and represented roughly 81% of the company’s total quarterly revenue.
The U.S. business grew 23% from the first quarter, supported by acceleration in both commercial and government demand.
U.S. commercial revenue surged 149% to $764 million from $306 million.
U.S. government revenue increased 90% to $809 million from $426 million.
The commercial business therefore grew substantially faster than the government operation, although government customers continued to generate slightly more U.S. revenue during the quarter.
Total commercial revenue increased 110% to $945 million.
Government revenue rose 79% to $990 million, leaving Palantir’s two major customer categories close to an even revenue split.
The value of Palantir’s commercial contract activity also increased sharply.
U.S. commercial total contract value reached a quarterly record of $2.13 billion, increasing 153% from the prior-year period.
The quarterly U.S. commercial contract value exceeded Palantir’s total companywide revenue of $1.94 billion.
However, total contract value represents the potential lifetime value of agreements at the time they are signed and may include unexercised customer options.
Most of Palantir’s contracts also contain termination provisions, including termination for convenience, so total contract value should not be treated as guaranteed future revenue.
Overall total contract value increased 49% to $3.37 billion.
U.S. commercial remaining deal value increased 124% year over year and 27% sequentially to $6.24 billion.
The remaining deal value represents the potential value left in customer contracts, including available options under Palantir’s methodology.
Customer expansion contributed significantly to the growth.
Palantir’s U.S. commercial customer count increased 35% year over year and 6% sequentially to 653.
Because U.S. commercial revenue increased 149% while customer count grew 35%, the results suggest that higher spending by existing customers and larger deployments contributed substantially more than customer additions alone.
Palantir’s net dollar retention rate reached 157%.
This means revenue from the existing customer group increased approximately 57% before accounting for revenue generated by newly added customers.
Total customer count increased 24% to 1,049, while commercial customer count rose 26% to 870.
The rapid revenue and contract growth translated into substantial operating leverage.
GAAP operating income reached $912 million, producing a GAAP operating margin of 47%.
That compared with $269 million of operating income during the second quarter of 2025.
Adjusted operating income reached approximately $1.19 billion.
Adjusted operating margin expanded to 62% from 46% in the prior-year quarter.
Palantir achieved a Rule of 40 score of 155%, combining 93% revenue growth with its 62% adjusted operating margin.
The score increased from 145% during the first quarter and 94% during the second quarter of 2025.
GAAP net income attributable to common shareholders reached approximately $1.06 billion.
GAAP and adjusted diluted earnings per share were both $0.41, even though the adjusted calculation excluded stock-based compensation and related payroll taxes.
A $297.4 million income-tax adjustment offset those exclusions, leaving adjusted net income of approximately $1.05 billion slightly below reported net income.
Palantir also generated approximately $1.22 billion in cash from operating activities.
Adjusted free cash flow reached a similar $1.22 billion, representing a margin of 63%.
The company ended June with $9.2 billion in cash, cash equivalents, and U.S. Treasury securities and no debt.
Palantir expects third-quarter revenue of between $2.16 billion and $2.164 billion.
Adjusted operating income is projected to range from $1.292 billion to $1.296 billion, implying continued operating margins near 60%.
For the full year, Palantir expects revenue of between $8.15 billion and $8.158 billion.
U.S. commercial revenue is expected to exceed $3.424 billion, representing growth of at least 134%.
The company also forecasts adjusted operating income of between $4.889 billion and $4.897 billion and adjusted free cash flow of between $4.5 billion and $4.7 billion.
Palantir’s second-quarter results show that AIP adoption is progressing beyond initial demonstrations and into larger, higher-value contracts.
The number of deals exceeding $5 million and $10 million, combined with record U.S. commercial contract value and a 157% net dollar retention rate, indicates that customers are expanding their use of Palantir after initial deployment.
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