- Palantir's Q2 revenue rose 93% year over year to approximately $1.94 billion, with U.S. commercial revenue up 149% to $764 million and operating income tripling to $912 million.
- U.S. operations now make up 81% of total revenue, driven by Palantir's "AI sovereignty" pitch, while international commercial revenue grew only 26% year over year as European entities including France's Thales and Germany's military rejected the company's systems on data-sovereignty grounds.
- Management raised its FY26 revenue target to about $8.15 billion, nearly double the 2025 target set last year.
- Despite the growth, the stock stayed flat around $176 and market cap near $420 billion, halving the sales multiple from roughly 100x to 52x guided sales, with a forward P/E of 76.
- Wall Street raised its mean price target to a series high of $196.84 and increased Buy ratings, treating European resistance as immaterial to near-term numbers.
Quotes
“AI sovereignty”
“valuation compression without price movement”