Palantir Raises Revenue Guidance After 93% Quarterly Growth

Palantir Technologies Inc. reported second-quarter financial results featuring 93% year-over-year revenue growth and a 62% adjusted EBITDA margin. The company generated $1.22 billion in free cash flow, with commercial revenue increasing by 110% and government revenue rising by 79%. Growth was particularly strong among U.S. customers, where commercial sales grew 149% and government sales grew 90%.

Driven by the adoption of its Artificial Intelligence Platform (AIP) and commercial scaling, the company increased its full-year revenue guidance to a midpoint of $8.154 billion, up from a previous estimate of $7.656 billion. Net revenue retention rose to 157%. The stock price increased nearly 36% over a single week following the announcement.

Despite the strong performance, management anticipates a slowdown in revenue growth during the second half of the year. Analysts noted that the company now trades at a high valuation, with a forward price-to-earnings ratio of approximately 100 and an enterprise value exceeding 45 times the 2026 revenue guidance.