Friday's midday bid across AI is concentrated in government-facing names, not enterprise software.
Revenue surged 93% to $1.94 billion, while U.S. commercial bookings soared 149%, confirming accelerating enterprise AI adoption. U.S. commercial contract value increased 153%, remaining deal value reached $6.24 billion, and 73 contracts exceeded $10 million. GAAP operating margin reached 47%, while adjusted free cash flow hit $1.22 billion and a remarkable 63% margin.
Palantir (NASDAQ:PLTR | PLTR Price Prediction) just delivered a quarter CEO Alex Karp openly called “otherworldly“.
Palantir (NASDAQ: PLTR | PLTR Price Prediction) and Snowflake (NYSE: SNOW) both just reported quarters that reframed how agentic AI actually reaches enterprises.
Palantir Technologies earns a reiterated Strong Buy rating, driven by sustained top- and bottom-line growth and robust operating leverage. PLTR's U.S. commercial business is delivering triple-digit growth, with GAAP net income margins rising from under 10% to 55% over three quarters. Despite price volatility and recent high-profile bearish bets, PLTR's valuation multiples have compressed even as revenues and margins expand.
Palantir Technologies delivered Q2 results far ahead of expectations, with 93% revenue growth and significant margin expansion. US commercial revenue surged 149%, US government revenue rose 90%, and net dollar retention climbed to 157%, underscoring robust customer expansion. Management raised full-year 2026 revenue guidance by nearly $500 million, now projecting 82% annual growth and strong free cash flow.
PLTR's expanding margins, surging Rule of 40 score and AI deployment focus strengthen the case for durable, more efficient growth.
Palantir Technologies, along with Unity and Match Group represent three software stocks with improving outlooks.
Palantir has become one of the most polarizing stocks in the market, but the fundamentals from Q2 FY26 are too loud to ignore.
The stock market has never had trouble producing extreme opinions, particularly when investors are trying to put a value on companies at the center of a technological revolution.
Palantir Technologies remains a 'Buy' as business growth and margins continue to outperform expectations, with a 23% stock gain since the last update. PLTR's Q2 2026 revenue grew 19% QoQ, with U.S. Commercial sales up 149% YoY and Government revenue up 79% YoY, dispelling concerns over deceleration. Unit economics are exceptional: $2.13B U.S. commercial TCV (+153% YoY), RPO at $4.9B (+103% YoY), and a Rule of 40 score of 155%.
Finbold's AI-powered forecasting system has set a Palantir (NASDAQ: PLTR) stock price target of $177.43 for September 1, 2026.