$Palantir Technologies Inc.(PLTR)$ Palantir just reported a Q2 that honestly blew past expectations on basically every front — revenue, margins, cash flow, and the guide-up. It feels like one of those prints where the enterprise AI adoption story really shows up in the numbers, and PLTR is taking a big piece of it.
Revenue came in at $1.935 billion, up 93% YoY and 19% sequentially. U.S. revenue hit $1.573 billion, a 115% jump. The U.S. commercial segment is the standout, at $764 million and up 149% from last year. U.S. government wasn't far behind at $809 million, up 90%.
The commercial deal activity is what really stands out. They closed 220 deals worth at least $1 million, 98 deals at $5 million or more, and 73 deals at $10 million or more. TCV came in at $3.373 billion, up 49%, with U.S. commercial TCV surging 153% to $2.132 billion. RDV hit $6.238 billion, up 124%. That's a lot of future revenue locked in.
On the profitability side, it's still elite software economics. GAAP operating margin was 47%, adjusted was 62%. GAAP net margin was 55%. Operating cash flow and free cash flow margins both sat at 63%. The Rule of 40 score came in at 155%. EPS was $0.41 on both a GAAP and adjusted basis.
The balance sheet is sitting on $9.2 billion in cash, equivalents, and short-term Treasuries. They remain extremely well-capitalized.
Guidance was raised across the board. For the full year, revenue is now expected at $8.150–8.158 billion. U.S. commercial revenue is guided to over $3.424 billion, which implies at least 134% growth. Adjusted operating income is seen at $4.889–4.897 billion, with adjusted free cash flow at $4.5–4.7 billion. For Q3, revenue is guided to $2.160–2.164 billion and adjusted operating income to $1.292–1.296 billion.
Karp called the quarter "otherworldly" and talked about how demand for AI sovereignty is accelerating, with organizations wanting more control over their data instead of feeding it into external training models.
It's a very strong report. 93% revenue growth, U.S. commercial up 149%, record deal activity, a solid backlog, outstanding margins, guidance raised everywhere, and a fortress-like cash position. If enterprise AI spending keeps expanding, the numbers also point to solid demand for the hardware, cloud, and networking providers that support AI compute, including names like NVDA, AMD, SMCI, CRWV, and AMZN.
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