Palantir Technologies shares surge after earnings beat

Palantir Technologies Inc ( NYSE:PLTR ) shares jumped 20% to about $152 in early trade on Tuesday the company reported second quarter 2026 results that exceeded Wall Street expectations for both earnings and revenue.

The company reported adjusted earnings per share of $0.41, compared with the $0.35 consensus estimate, while revenue rose 93% year over year to $1.935 billion, above expectations of $1.80 billion.

US revenue increased 115% to $1.573 billion, including a 149% increase in US commercial revenue to $764 million. US government revenue rose 90% to $809 million.

Palantir closed 220 deals worth at least $1 million during the quarter, including 73 deals of at least $10 million.

Total contract value increased 49% year over year to $3.373 billion, while U.S. commercial TCV rose 153% to $2.132 billion.

GAAP operating income reached $912 million, representing a 47% margin, while adjusted operating income was $1.194 billion, or a 62% margin.

GAAP net income was $1.062 billion, with adjusted free cash flow of $1.220 billion.

For the third quarter, Palantir expects revenue of $2.160 billion to $2.164 billion and adjusted operating income of $1.292 billion to $1.296 billion.

The company also raised its full year 2026 revenue guidance to $8.150 billion to $8.158 billion, while increasing its adjusted operating income outlook to $4.889 billion to $4.897 billion and adjusted free cash flow guidance to $4.5 billion to $4.7 billion.