Palantir’s Explosive Growth Makes This $875M Loss Look Smaller

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Palantir (PLTR) reported strong Q2 2026 results with significant year-over-year revenue growth. U.S. Commercial revenue surged by 149% to $764 million, while U.S. Government revenue grew by 90% to $800 million. Total revenue saw a 93% increase. The company raised its full-year 2026 revenue guidance to between $8.55 billion and $8.63 billion, exceeding previous expectations. Despite a high trailing P/E ratio of 147x (based on trailing twelve months' earnings), which indicates a premium valuation, the direction is improving as earnings are starting to catch up with the stock price. The loss of an $875 million FAA contract, representing approximately 10% of projected 2026 revenue, is viewed as a setback rather than a fundamental break in the company's growth story. Palantir's strong growth in commercial business and continued guidance raises suggest a positive outlook. Analysts have also shown increasing confidence, with the average rating improving to a 'moderate buy' score of 4.34, moving towards strong buy territory. The company's ability to sustain this growth trajectory and eventually justify its valuation remains key.

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