Palantir reports Q2 2026 after the close today, Monday, August 3, a date the company confirmed on July 13. Two days ago we published a piece admitting that our Rule of 40 score for Palantir is five quarters stale: the header reads R40: 99 · 2024 Q4, computed from a quarter in which the company booked $828M, while the business now books nearly twice that. This is the follow-up that piece earned — what tonight's print can and cannot fix.
The short version is uncomfortable. The number everyone will watch tonight is revenue, and revenue is the half of our score that was never stuck. The half that is stuck — free cash flow — is not something a headline usually leads with, and it is the only half a new quarter would let us update.
What our data holds, and where it stops
All figures below are from our own stored Palantir series, the data behind the ticker page.
| Quarter | Revenue | Revenue YoY | Gross margin | Diluted EPS | Free cash flow |
|---|---|---|---|---|---|
| 2025 Q1 | $884M | +39.4% | 80.43% | — | — |
| 2025 Q2 | $1,004M | +48.1% | 80.78% | — | — |
| 2025 Q3 | $1,181M | +62.7% | 82.45% | — | — |
| 2025 Q4 | $1,407M | +69.9% | 84.65% | — | — |
| 2026 Q1 | $1,633M | +84.7% | 86.78% | — | — |
The dashes are not omissions for space. Our revenue and gross-margin series run through 2026 Q1; our EPS and free-cash-flow series stop at 2024 Q4, where EPS was $0.14 and free cash flow was $517M. Five quarters of revenue and margin, zero quarters of earnings or cash flow. That is the whole reason the score is frozen, and it is a gap on our side, not a disclosure gap at Palantir.
The number that isn't the problem
Revenue growth has done something rare: it has accelerated for five straight quarters, from +39.4% to +84.7%, while the base was climbing. Businesses this size almost never speed up on a bigger denominator. Gross margin did the quiet version of the same thing — 80.43% → 80.78% → 82.45% → 84.65% → 86.78%, up every quarter since our score froze.
Because the Rule of 40 is revenue growth plus free-cash-flow margin, the growth half alone is now 84.7 — almost the entire 99 the page still advertises as the total, before any margin contribution is counted. Whatever Palantir's real Rule of 40 is tonight, it is not 99, and it is not lower than 99 because of revenue.
What tonight actually settles
Here is the asymmetry worth holding onto. Tonight's release will report Q2 2026 revenue, and consensus has it stepping up again. That will confirm the acceleration — and change our score by exactly nothing, because our score is already behind on the other input.
What would move the score is the line that gets less airtime: operating cash flow minus capex. If Palantir's Q2 cash-flow figure lands in our data, that series extends past 2024 Q4 for the first time in five quarters, and the 99 finally recomputes off a current quarter. On the trajectory of everything else we hold, it recomputes upward. The catch is that this is our ingestion catching up, not the print itself — the number exists in the release tonight; whether it reaches our series is a separate step.
What to watch
- The cash-flow line, not the revenue line. Revenue confirms a story we already tell. Free cash flow is the input our headline metric is missing — it is the one whose absence, not its value, is currently wrong on the page.
- Whether gross margin posts a seventh straight rise. Six consecutive quarters of expansion is a trend; the quarter that breaks it is the one worth noticing.
- How dated the analyst frame is. The most recent rating we hold is a Daiwa Securities upgrade to Buy with a $180 target dated February 10, 2026, and the ratings block's average target is $183.90 — against a price of $119.50 as of August 1. Those are February marks; read them as of that date, not tonight.
The bottom line
We spent an article explaining why our Palantir score is five quarters stale, and the honest coda is that tonight does not directly fix it. The print will validate the revenue acceleration — from +39.4% to +84.7%, a business that nearly doubled while our score sat still — and that validation touches only the half of the score that was already current. The half that froze is free cash flow, and it moves when our data extends, not when the market reacts. So watch the number the headline buries. For this ticker, on this site, it is the only one that would tell us something we do not already know.
Figures are from our stored Palantir series: revenue and gross margin through 2026 Q1, EPS and free cash flow ending 2024 Q4. Year-over-year growth is our own arithmetic on the revenue series; free cash flow is operating cash flow minus capital expenditure, the same definition applied to every company on this site. The price of $119.50 is as of August 1 and the analyst targets are February marks. We hold no consensus revenue or EPS estimate for Palantir, so none is quoted above.