Palantir Technologies reported second-quarter revenue of $1.94 billion, up 93 percent year over year and well ahead of the $1.80 billion analyst consensus. Shares jumped roughly 12 percent in after-hours trading, recovering ground for a stock still down about 29 percent for the year.

Adjusted earnings came in at 41 cents per share against a 35-cent estimate. GAAP net income attributable to common stockholders reached $1.062 billion, or 41 cents per diluted share, compared with roughly $329 million and 13 cents per share in the year-ago quarter. Adjusted free cash flow of $1.22 billion translated to a 63 percent margin, and the company’s Rule of 40 score hit 155 percent, a figure that’ll read as vindication inside the AI-maximalist camp and as an outlier to everyone else.

The composition of the growth is the real story. U.S. commercial revenue rose 149 percent to $764 million; U.S. government revenue rose 90 percent to $809 million; combined U.S. revenue reached $1.573 billion, up 115 percent and now more than 81 percent of the total. Palantir closed 220 deals worth at least $1 million, 70 of them above $10 million.

“Our Q2 results are unprecedented, but entirely unsurprising, as the abrupt market shift in LLMs that we’ve been warning you about for years is now here,” said Chief Revenue Officer Ryan Taylor.

Chief Financial Officer Dave Glazer raised full-year 2026 guidance to between $8.150 billion and $8.158 billion, implying roughly 82 percent growth, with U.S. commercial revenue now expected to exceed $3.424 billion. Third-quarter guidance was set at $2.160 billion to $2.164 billion.

The pattern rhymes with Cisco’s 1999–2000 run: a picks-and-shovels vendor whose numbers accelerate precisely as the underlying capex cycle enters its most self-reinforcing phase. The narrative writes itself. Cycles like this always do.

Sources