Palantir (PLTR)

In the second fiscal quarter of twenty twenty-six, Palantir generated more revenue and retained more of each revenue dollar as operating profit than in the same fiscal quarter of twenty twenty-five. That combination matters because expansion is translating into stronger operating economics, not just a larger sales base.

Reported diluted earnings per share also increased against the same fiscal quarter of twenty twenty-five. Consolidated net income includes non-operating contributions, so operating income remains the clearer measure of profit from running the business.

Palantir sells software that helps organizations use data to make decisions.

We like Palantir because it puts artificial intelligence to work where decisions matter. Foundry serves commercial organizations, while Gotham serves government clients. The exciting opportunity is to turn complex data into practical action across customers' operations, making its software useful beyond analysis alone.

Palantir works only with entities in Western-allied nations and reserves the right to reject customers whose activities conflict with Western values. That gives the business a distinctive boundary, but also restricts the customers it can serve.

Reported consolidated revenue increased against the same fiscal quarter of twenty twenty-five. It also increased against the preceding fiscal quarter, showing that expansion continued within the current fiscal year.

The available results do not separate commercial and government growth or identify individual platform contributions. They support a strong consolidated growth assessment, but not a claim about which customer group drove it.

Operating margin measures the share of revenue left after operating expenses. Palantir's reported margin improved against both the same fiscal quarter of twenty twenty-five and the preceding fiscal quarter.

The business is keeping more operating profit from its sales. The evidence does not identify how much of that improvement came from pricing, customer mix or particular expense categories.

Reported diluted earnings per share improved against both the same fiscal quarter of twenty twenty-five and the preceding fiscal quarter. This is the published reported measure, not adjusted earnings.

Other non-operating income contributes to consolidated earnings but is distinct from profit earned through operations. The available fields do not fully explain the difference between operating income and net income, so that gap should not be attributed to an assumed tax or investment benefit.

For the reported second fiscal quarter of twenty twenty-six, operating cash flow exceeded gross cash purchases of property, plant and equipment. Operating cash flow and cash remaining after those purchases both increased against the same fiscal quarter of twenty twenty-five.

For the trailing annual period ended in June of twenty twenty-six, operating cash flow also comfortably covered gross cash purchases of property, plant and equipment. These purchases do not capture all investment in the business.

Massive's reported cash-flow fields underpin the derived cash-after-purchases measure. It excludes property sales, intangible investments, leases and noncash commitments; it is not an issuer-defined free-cash-flow measure.

At the June fiscal quarter-end of twenty twenty-six, Palantir held cash and substantial short-term investments. Reported current borrowings and noncurrent debt and capital lease obligations were absent.

That liquidity and positive operating cash generation support financial flexibility without an evident need to borrow for the reported gross property purchases. The borrowing fields should not be read as proof that the company has no other liabilities or commitments.

The current analyst targets and SPY comparison are shown in Our verdict.

Watch whether revenue expansion continues alongside strong operating margins and quarterly cash generation. Customer-group disclosure would help explain how broadly demand supports the consolidated results.

Also watch the role of non-operating income and investment beyond gross property purchases. Palantir's customer restrictions are a material business boundary, while retention and pricing power remain unproven by the available evidence.