10-Q · August 3, 2026
Palantir delivered $1.935 billion of Q2 revenue, up 93% year over year and 18.7% sequentially, with GAAP operating margin expanding to 47% from 27% a year earlier. Commercial revenue grew 110% to $945.432 million and…
Earnings analysis · 10-Q
PLTR earnings analysis
Filed November 2, 2026 · Our reading of the company's report
The latest report
Palantir delivered a strong third quarter, with $2.313 billion of revenue, $0.44 diluted EPS, and a 47% GAAP operating margin, while U.S. commercial revenue rose 148% year over year to $984 million. Commercial revenue…
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Palantir delivered a strong third quarter, with $2.313 billion of revenue, $0.44 diluted EPS, and a 47% GAAP operating margin, while U.S. commercial revenue rose 148% year over year to $984 million. Commercial revenue surpassed government revenue for the first time, reinforcing the company’s commercial growth trajectory. The principal offsets are concentration and contract-realization risk, increasing AI and privacy regulation, and heightened cybersecurity and geopolitical exposure.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.44
- Operating margin
- 47.0%
- Segment
- U.S. commercial revenue: $984 million, up 148% year over year; commercial revenue surpassed government revenue for the first time.
What stood out
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Revenue and EPS exceeded consensus
Revenue was $2.313 billion, exceeding the $2.178 billion consensus estimate by approximately 6.2%; diluted EPS was $0.44 versus the $0.39 estimate, a 12.8% beat.
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Operating profitability remained strong
GAAP operating margin was 47%, indicating continued high operating leverage at scale.
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U.S. commercial growth accelerated
U.S. commercial revenue reached $984 million, increasing 148% year over year and surpassing government revenue for the first time.
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Meaningful investment portfolio
The company held $185 million of publicly traded equity securities and $217 million of privately held equity securities as of September 30, 2026, providing additional investment assets but also potential liquidity and valuation upside.
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Liquidity remained well supported
The company had $500 million of revolving credit commitments, all undrawn as of the filing date, and stated that operating cash flows, available funds, and financing access were expected to cover cash needs for at least the next twelve months.
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Organization continued to scale
Management reported 4,634 full-time employees as of September 30, 2026, supporting continued expansion of the platform and commercial go-to-market organization.
What to watch
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Customer concentration and churn
Customer concentration and renewal risk remain material: the top three customers represented 16% of revenue for the nine months ended September 30, 2026, while many contracts permit termination for convenience and customers have no obligation to renew or expand.
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Contract realization risk
The company reported $11.2 billion of total remaining deal value as of December 31, 2025, including $6.8 billion commercial and $4.4 billion government; management states it historically has not realized all contracted deal value because of options, terminations, renegotiations, and budget delays.
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Investment-linked customer exposure
Strategic Commercial Contracts had a total value of $326 million as of September 30, 2026, with $325 million cumulatively recognized and only $4 million recognized during the nine months ended September 30, 2026; early-stage investee customers have filed for bankruptcy or terminated contracts.
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Expanding AI and privacy regulation
AI-related regulatory and product risk is increasing: EU AI Act penalties can reach €35 million or 7% of worldwide annual turnover, whichever is higher, while South Korea’s revised privacy framework permits administrative fines of up to 10% of company revenue.
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Cybersecurity and geopolitical exposure
The filing highlights heightened cyber and physical-security exposure from conflict-zone operations, including the hostilities in Iran, while the company also relies on third-party infrastructure providers such as AWS and Microsoft Azure.
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Long and unpredictable sales cycle
Revenue growth and quarterly cash flows may remain volatile because sales cycles often last six to nine months, can extend beyond one year, and a large portion of sales closes in the last several weeks of a quarter.
Management's outlook
The 10-Q does not provide new quantitative revenue or EPS guidance. FY 2026 and Q4 2026 outlook was provided in the November 2, 2026 earnings release rather than this filing.
Earlier filings 4
10-Q · May 4, 2026
Palantir Technologies reported a robust Q1 2026, showcasing an 85% year-over-year revenue growth to $1.63 billion, beating consensus estimates. Diluted EPS also surpassed expectations at $0.33, reflecting increased…
10-K · February 17, 2026
Palantir scaled materially in 2025, reporting $4.5 billion of revenue and growing its customer base to 954 as of December 31, 2025. Margins and cash generation expanded sharply (Q4 2025 gross margin 84.7% and operating…
10-Q · August 5, 2025
Palantir Technologies Inc. reported strong Q2 2025 results with revenues of $1.0 billion, reflecting an increase of 47.8% year-over-year. The company achieved an EPS of $0.16, surpassing estimates by 33.3%. Notable…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.