Investors cheered a powerful combination of faster growth, fatter margins, and a revenue outlook “crushing consensus expectations,” prompting a sharp rebound in a stock that had stumbled to start the year.
Management highlighted a “rule of 40” score—the sum of revenue growth and operating margin—at an “incredible” level of 127%. CEO Alex Karp attributed this to Palantir being the only company “choosing to exclusively focus on scaling the operational leverage made possible by the rapid advancements of AI models, a trend that we first called ‘commodity cognition’ well before others started repeating it.”
While Wall Street’s focus has increasingly turned to Palantir’s enterprise roster, the company’s government business remains a cornerstone, supplying software to the U.S. Army, other Pentagon branches, and allied militaries. Government revenue continued to grow in the latest period, even as management acknowledged persistent macro headwinds in Europe and lumpiness tied to large contracts.
Looking ahead to 2026, Palantir forecast full-year revenue between $7.18 billion and $7.2 billion, implying growth of around 60% and handily beating consensus expectations.
