What changed in this filing

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Item 1. Financial Statements

2026-08-04 compared with 2026-05-05 · 161 added, 98 removed, 430 unchanged (38% of the section changed)

3 unchanged sentences

(in thousands, except per share amounts)

As of March 31,

As of June 30,

2026 As of December 31,

23 unchanged sentences

Common stock, $ 0.001 par value:

20,000,000 Class A shares authorized as of March 31, 2026 and December 31, 2025;

2,295,892 and 2,290,987 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively;

2,700,000 Class B shares authorized as of March 31, 2026 and December 31, 2025;

100,236 and 99,200 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively;

and 1,005 Class F shares authorized, issued, and outstanding as of March 31, 2026 and December 31, 2025

20,000,000 Class A shares authorized as of June 30, 2026 and December 31, 2025;

2,300,517 and 2,290,987 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively;

2,700,000 Class B shares authorized as of June 30, 2026 and December 31, 2025;

101,375 and 99,200 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively;

and 1,005 Class F shares authorized, issued, and outstanding as of June 30, 2026 and December 31, 2025

Additional paid-in capital 11,408,867 10,933,325

Accumulated other comprehensive income, net 601 13,942

Accumulated other comprehensive income (loss), net ( 7,103 ) 13,942

Accumulated deficit ( 1,629,973 ) ( 3,562,390 )

7 unchanged sentences

(in thousands, except per share amounts)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Revenue $ 1,935,464 $ 1,003,697 $ 3,568,047 $ 1,887,552

22 unchanged sentences

(in thousands)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Net income $ 1,065,962 $ 328,572 $ 1,942,364 $ 546,289

9 unchanged sentences

(in thousands)

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income, Net Accumulated Deficit Total Palantir’s Stockholders’ Equity Noncontrolling Interests Total Equity

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss), Net Accumulated Deficit Total Palantir’s Stockholders’ Equity Noncontrolling Interests Total Equity

Shares Amount

Balance as of December 31, 2025 2,391,192 $ 2,391 $ 10,933,325 $ 13,942 $ ( 3,562,390 ) $ 7,387,268 $ 100,743 $ 7,488,011

Balance as of March 31, 2026 2,397,133 $ 2,397 $ 11,138,528 $ 601 $ ( 2,691,863 ) $ 8,449,663 $ 106,618 $ 8,556,281

Issuance of common stock from the exercise of stock options 1,029 1 4,857 — — 4,858 — 4,858

Issuance of common stock upon release of restricted stock units (“RSUs”) and performance-based RSUs (“P-RSUs”) 4,735 5 ( 5 ) — — — — —

Stock-based compensation — — 265,487 — — 265,487 — 265,487

Other comprehensive loss — — — ( 7,704 ) — ( 7,704 ) — ( 7,704 )

Net income — — — — 1,061,890 1,061,890 4,072 1,065,962

Balance as of June 30, 2026 2,402,897 $ 2,403 $ 11,408,867 $ ( 7,103 ) $ ( 1,629,973 ) $ 9,774,194 $ 110,690 $ 9,884,884

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss), Net Accumulated Deficit Total Palantir’s Stockholders’ Equity Noncontrolling Interests Total Equity

Shares Amount

Balance as of December 31, 2025 2,391,192 $ 2,391 $ 10,933,325 $ 13,942 $ ( 3,562,390 ) $ 7,387,268 $ 100,743 $ 7,488,011

Issuance of common stock from the exercise of stock options 2,067 2 9,755 — — 9,757 — 9,757

Issuance of common stock upon release of RSUs and P-RSUs 9,646 10 ( 10 ) — — — — —

Repurchases of common stock ( 8 ) — ( 1,500 ) — — ( 1,500 ) — ( 1,500 )

2 unchanged sentences

Net income — — — — 1,932,417 1,932,417 9,947 1,942,364

Balance as of June 30, 2026 2,402,897 $ 2,403 $ 11,408,867 $ ( 7,103 ) $ ( 1,629,973 ) $ 9,774,194 $ 110,690 $ 9,884,884

The accompanying notes are an integral part of these condensed consolidated financial statements.

Palantir Technologies Inc.

Condensed Consolidated Statements of Equity

(in thousands)

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss), Net Accumulated Deficit Total Palantir’s Stockholders’ Equity Noncontrolling Interests Total Equity

Shares Amount

Balance as of March 31, 2025 2,359,663 $ 2,360 $ 10,398,181 $ ( 2,994 ) $ ( 4,973,392 ) $ 5,424,155 $ 94,818 $ 5,518,973

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss, Net Accumulated Deficit Total Palantir’s Stockholders’ Equity Noncontrolling Interests Total Equity

Issuance of common stock from the exercise of stock options 5,528 5 28,612 — — 28,617 — 28,617

Issuance of common stock upon release of RSUs and P-RSUs 6,820 7 ( 7 ) — — — — —

Repurchases of common stock ( 164 ) — ( 18,596 ) — — ( 18,596 ) — ( 18,596 )

Stock-based compensation — — 160,283 — — 160,283 — 160,283

Other comprehensive income — — — 7,715 — 7,715 — 7,715

Net income — — — — 326,727 326,727 1,845 328,572

Balance as of June 30, 2025 2,371,847 $ 2,372 $ 10,568,473 $ 4,721 $ ( 4,646,665 ) $ 5,928,901 $ 96,663 $ 6,025,564

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss), Net Accumulated Deficit Total Palantir’s Stockholders’ Equity Noncontrolling Interests Total Equity

Shares Amount

6 unchanged sentences

Net income — — — — 540,758 540,758 5,531 546,289

Balance as of March 31, 2025 2,359,663 $ 2,360 $ 10,398,181 $ ( 2,994 ) $ ( 4,973,392 ) $ 5,424,155 $ 94,818 $ 5,518,973

Balance as of June 30, 2025 2,371,847 $ 2,372 $ 10,568,473 $ 4,721 $ ( 4,646,665 ) $ 5,928,901 $ 96,663 $ 6,025,564

The accompanying notes are an integral part of these condensed consolidated financial statements.

2 unchanged sentences

(in thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Operating activities

3 unchanged sentences

Stock-based compensation 466,801 315,310

Unrealized and realized (gain) loss from marketable securities, net ( 62,242 ) ( 452 )

Other operating activities ( 85,582 ) 2,092

47 unchanged sentences

Significant Accounting Policies in the notes to consolidated financial statements in its Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the SEC on February 17, 2026.

There have been no significant changes to these policies during the three months ended March 31, 2026, except for the changes noted below.

There have been no significant changes to these policies during the six months ended June 30, 2026, except for the changes noted below.

Concentrations of Credit Risk

7 unchanged sentences

The Company is exposed to concentrations of credit risk with respect to accounts receivable presented on the condensed consolidated balance sheets.

The Company’s accounts receivable balances as of March 31, 2026 and December 31, 2025 were $ 1.4 billion and $ 1.0 billion, respectively.

Customer I represented 31 % and 25 % of total accounts receivable as of March 31, 2026 and December 31, 2025, respectively.

No other customer represented more than 10% of total accounts receivable as of March 31, 2026 and December 31, 2025.

For the three months ended March 31, 2026 and 2025, no customer represented more than 10% of total revenue.

The Company’s accounts receivable balances as of June 30, 2026 and December 31, 2025 were $ 1.5 billion and $ 1.0 billion, respectively.

Customer I represented 27 % and 25 % of total accounts receivable as of June 30, 2026 and December 31, 2025, respectively.

No other customer represented more than 10% of total accounts receivable as of June 30, 2026 or December 31, 2025.

For the three and six months ended June 30, 2026 and 2025, no customer represented more than 10% of total revenue.

Stock-Based Compensation

The Company accounts for stock-based compensation expense in accordance with the fair value recognition and measurement provisions of GAAP, which require compensation cost for the grant-date fair value of stock-based awards to be recognized over the requisite service period.

The Company determines the fair value of stock-based awards granted or modified on the grant date or modification date using appropriate valuation techniques.

The assumptions used to determine the grant-date fair value of the awards represent management’s best estimates.

These estimates involve inherent uncertainties and the application of management’s judgment.

The Company recognizes forfeitures as they occur.

Service-Based Awards

The Company grants awards, including RSUs, stock option awards, and stock appreciation rights (“SARs”), which vest based upon the satisfaction of a service condition.

For such awards, the Company records stock-based compensation expense on a straight-line basis over the requisite service periods.

The Company determines the grant-date fair value of the RSUs based on the fair value of the Company’s common stock on the grant date.

For stock option awards and SARs that vest over an explicit service period and are exercisable at expiration, during a limited window, the Company uses the Black-Scholes-Merton (“Black-Scholes”) option pricing model to determine the grant-date fair value of the awards.

The Black-Scholes option pricing model requires the input of highly subjective assumptions, including the expected term of the award, the expected volatility rate, risk-free interest rate, and the expected dividend yield of the common stock.

For SARs that are fully vested and exercisable upon grant with an exercise price equal to the fair market value of the Company’s common stock on the grant date, the Company estimates the grant-date fair value using a Monte Carlo simulation model, which requires the use of various assumptions including the contractual term, expected volatility rate, risk-free interest rate, annual post-vest termination rate, and expected exercise factor as of the grant date.

Performance-Based Awards

The Company also grants awards, including RSUs, that vest upon the satisfaction of both a service condition and a performance condition.

The Company determines the grant-date fair value of P-RSUs based on the fair value of the Company’s common stock on the grant date and records stock-based compensation expense using the accelerated attribution method over the service period.

The Company recognizes expense for the number of P-RSUs expected to vest, determined based on the level of achievement against certain performance conditions, over the requisite service period when it is probable that the performance condition will be achieved.

Recent Accounting Pronouncements Not Yet Adopted

7 unchanged sentences

This ASU is effective for fiscal years beginning after December 15, 2026, including interim periods within those annual reporting periods, with early adoption permitted.

The guidance can be applied prospectively to new contracts entered into on or after the date of adoption or on a modified retrospective basis for contracts existing as of the beginning of the annual reporting period of adoption.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

guidance can be applied prospectively to new contracts entered into on or after the date of adoption or on a modified retrospective basis for contracts existing as of the beginning of the annual reporting period of adoption.

The Company is currently evaluating the impacts of the new standard on its consolidated financial statements.

2 unchanged sentences

The Company’s contract liabilities consist of deferred revenue and customer deposits.

As of March 31, 2026 and December 31, 2025 the Company’s contract liabilities were $ 929 million and $ 812 million, respectively.

Revenue of $ 439 million and $ 259 million was recognized during the three months ended March 31, 2026 and 2025, respectively, that was included in contract liabilities as of December 31, 2025 and 2024, respectively.

As of June 30, 2026 and December 31, 2025, the Company's contract liabilities were $ 1.1 billion and $ 0.8 billion, respectively.

Revenue of $ 604 million and $ 404 million was recognized during the six months ended June 30, 2026 and 2025, respectively, that was included in contract liabilities as of December 31, 2025 and 2024, respectively.

Remaining Performance Obligations

4 unchanged sentences

Cancelable contracted revenue, which includes customer deposits, is not considered a remaining performance obligation.

The Company’s remaining performance obligations were $ 4.5 billion as of March 31, 2026, of which the Company expects to recognize approximately 39 % as revenue over the next 12 months, 36 % as revenue over the subsequent 13 to 36 months, and the remainder thereafter.

Disaggregation of Revenue

Segment and Geographic Information for disaggregated revenue by customer segment and geographic region.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

The Company’s remaining performance obligations were $ 4.9 billion as of June 30, 2026, of which the Company expects to recognize approximately 43 % as revenue over the next 12 months, 36 % as revenue over the subsequent 13 to 36 months, and the remainder thereafter.

Investments and Fair Value Measurements

The following tables present the Company’s assets that are measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation (in thousands):

As of March 31, 2026

As of June 30, 2026

Total Level 1 Level 2 Level 3

1 unchanged sentence

Money market funds $ 1,040,164 $ 1,040,164 $ — $ —

Treasury securities 396,828 — 396,828 —

Prepaid expenses and other current assets and other assets:

4 unchanged sentences

Total $ 8,820,915 $ 1,224,254 $ 7,596,661 $ —

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

As of December 31, 2025

9 unchanged sentences

Debt Securities

As of March 31, 2026 and December 31, 2025, available-for-sale debt securities, all of which are included in marketable securities on the condensed consolidated balance sheet, consisted of the following (in thousands):

As of March 31, 2026

As of June 30, 2026, available-for-sale debt securities consisted of the following (in thousands):

As of June 30, 2026

Amortized Cost Unrealized Gains Unrealized Losses Fair Value

1 unchanged sentence

Total debt securities $ 7,599,616 $ 658 $ ( 8,484 ) $ 7,591,790

Included in cash and cash equivalents $ 396,854 $ — $ ( 26 ) $ 396,828

Included in marketable securities $ 7,202,762 $ 658 $ ( 8,458 ) $ 7,194,962

As of December 31, 2025, available-for-sale debt securities, all of which are included in marketable securities on the condensed consolidated balance sheet, consisted of the following (in thousands):

As of December 31, 2025

2 unchanged sentences

Total debt securities $ 5,720,869 $ 9,158 $ ( 135 ) $ 5,729,892

No available-for-sale debt securities were sold during the three months ended March 31, 2026.

The Company sold $ 280 million of available-for-sale debt securities during the three months ended March 31, 2025.

No available-for-sale debt securities were sold during the three and six months ended June 30, 2026 or the three months ended June 30, 2025.

The Company sold $ 280 million of available-for-sale debt securities during the six months ended June 30, 2025.

The realized gains and losses from those sales were immaterial.

As of March 31, 2026 and December 31, 2025, available-for-sale debt securities of $ 2.4 billion and $ 0.7 billion, respectively, were in an unrealized loss position primarily due to unfavorable changes in interest rates subsequent to

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

initial purchase.

None of the available-for-sale debt securities held as of March 31, 2026 or December 31, 2025 were in a continuous unrealized loss position for greater than 12 months and it is more likely than not that the Company will hold the securities until maturity or a recovery of the cost basis.

The Company did not recognize any credit losses related to available-for-sale debt securities during the three months ended March 31, 2026 or 2025.

As of June 30, 2026 and December 31, 2025, available-for-sale debt securities of $ 5.8 billion and $ 0.7 billion, respectively, were in an unrealized loss position primarily due to unfavorable changes in interest rates subsequent to initial purchase.

None of the available-for-sale debt securities held as of June 30, 2026 or December 31, 2025 were in a continuous unrealized loss position for greater than 12 months and it is more likely than not that the Company will hold the securities until maturity or a recovery of the cost basis.

The Company did not recognize any credit losses related to available-for-sale debt securities during the three and six months ended June 30, 2026 and 2025.

All of the Company’s U.S.

Treasury securities had contractual maturities due within one year as of March 31, 2026 and December 31, 2025.

Treasury securities had contractual maturities due within one year as of June 30, 2026 and December 31, 2025.

Equity Securities

1 unchanged sentence

Realized and unrealized gains and losses are recorded in other income (expense), net on the condensed consolidated statements of operations.

For the three months ended March 31, 2026 and 2025, net unrealized gains and losses from publicly-traded equity securities held at the end of each period were immaterial.

For the three and six months ended June 30, 2026 net unrealized gains from publicly-traded equity securities held at the end of the period, the majority of which are subject to short-term restrictions on the ability to sell, were $ 66 million and $ 64 million, respectively.

The net unrealized losses from publicly-traded equity securities at the end of the period were immaterial for the three and six months ended June 30, 2025.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

The Company also holds equity securities in privately-held companies without readily determinable fair values that are recorded using the measurement alternative.

As of March 31, 2026 and December 31, 2025, the total amount of privately-held equity securities included in other assets on the condensed consolidated balance sheets was $ 245 million and $ 170 million, respectively.

As of June 30, 2026 and December 31, 2025, the total amount of privately-held equity securities included in other assets on the condensed consolidated balance sheets was $ 167 million and $ 170 million, respectively.

The Company classifies these fair value measurements as Level 3 within the fair value hierarchy.

There were no material upward or downward adjustments or impairments for the privately-held equity securities during the three months ended March 31, 2026 or 2025.

Cumulative upward and downward adjustments and impairments on privately-held equity securities held by the Company as of March 31, 2026 were not material.

There were no material upward or downward adjustments or impairments for the privately-held equity securities during the three and six months ended June 30, 2026 or 2025.

Cumulative upward and downward adjustments and impairments on privately-held equity securities held by the Company as of June 30, 2026 were not material.

Supplemental Financial Statement Information

1 unchanged sentence

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the amounts shown in the condensed consolidated statements of cash flows (in thousands):

As of March 31,

As of June 30,

Cash and cash equivalents $ 2,030,047 $ 929,547

4 unchanged sentences

Accounts payable, accrued liabilities, and other consisted of the following (in thousands):

As of March 31,

As of June 30,

2026 As of December 31,

6 unchanged sentences

The Company has a secured revolving credit facility which provides for aggregate revolving commitments of $ 500 million and has a maturity date of March 31, 2027 (as amended, the “2014 Credit Facility”).

As of March 31, 2026, the Company had no outstanding debt balances under the 2014 Credit Facility.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

As of June 30, 2026, the Company had no outstanding debt balances under the 2014 Credit Facility.

The 2014 Credit Facility contains customary representations and warranties, and certain financial and nonfinancial covenants, including but not limited to maintaining minimum liquidity of $ 50 million, and certain limitations on liens and indebtedness.

The Company was in compliance with all covenants associated with the 2014 Credit Facility as of March 31, 2026.

The Company was in compliance with all covenants associated with the 2014 Credit Facility as of June 30, 2026.

Commitments and Contingencies

4 unchanged sentences

Any and all previous payment obligations related to such third-party cloud hosting services agreement were terminated concurrently with the signing of this amendment.

As of March 31, 2026, except for the aforementioned, there were no material changes outside the ordinary course of business to the Company’s commitments, as disclosed in its Annual Report on Form 10-K for the year ended December 31, 2025.

As of June 30, 2026, except for the aforementioned, there were no material changes outside the ordinary course of business to the Company’s commitments, as disclosed in its Annual Report on Form 10-K for the year ended December 31, 2025.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

Litigation and Legal Proceedings

25 unchanged sentences

On March 16, 2026, the United States Court of Appeals for the Tenth Circuit held oral arguments for the case.

As of March 31, 2026, the Company was not aware of any currently pending legal matters or claims, individually or in the aggregate, that were expected to have a material adverse impact on its condensed consolidated financial statements.

As of June 30, 2026, the Company was not aware of any currently pending legal matters or claims, individually or in the aggregate, that were expected to have a material adverse impact on its condensed consolidated financial statements.

Warranties and Indemnification

4 unchanged sentences

Due to the absence of historical warranty claims, the Company’s expectations of future claims related to products under warranty continue to be insignificant.

The Company has not recorded warranty expense or related accruals as of March 31, 2026 and December 31, 2025.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

The Company has not recorded warranty expense or related accruals as of June 30, 2026 and December 31, 2025.

The Company generally agrees to indemnify its customers against legal claims that the Company’s software products infringe certain third-party intellectual property rights and accounts for its indemnification obligations.

4 unchanged sentences

To date, the Company has not been required to make any payment resulting from infringement claims asserted against its customers and does not believe that the Company will be liable for such claims in the foreseeable future.

As such, the Company has not recorded a liability for infringement costs as of March 31, 2026 and December 31, 2025.

As such, the Company has not recorded a liability for infringement costs as of June 30, 2026 and December 31, 2025.

The Company has obligations under certain circumstances to indemnify each of the defendant directors and certain officers against judgments, fines, settlements, and expenses related to claims against such directors and certain officers and otherwise to the fullest extent permitted under the law and the Company’s Amended and Restated Bylaws and Amended and Restated Certificate of Incorporation.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

Stockholders’ Equity

3 unchanged sentences

All shares of Class F common stock are held in a voting trust established by Stephen Cohen, Alexander Karp, and Peter Thiel (the “Founders”).

The Class F common stock generally gives the Founders the ability to control up to 49.999999 % of the total voting power of the Company’s capital stock, so long as the Founders and certain of their affiliates collectively meet a minimum ownership threshold, which was 100 million of the Company's equity securities as of March 31, 2026.

Holders of the common stock are entitled to dividends when, as, and if declared by the Company’s Board of Directors, subject to the rights of the holders of all classes of stock outstanding having priority rights to dividends.

No dividends have been declared as of March 31, 2026.

No dividends have been declared as of June 30, 2026.

The following represented the total authorized, issued, and outstanding shares for each class of common stock (in thousands):

As of March 31, 2026 As of December 31, 2025

As of June 30, 2026 As of December 31, 2025

Authorized Issued and Outstanding Authorized Issued and Outstanding

3 unchanged sentences

Total 22,701,005 2,402,897 22,701,005 2,391,192

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

Stock-Based Compensation

Stock Options and SARs

The following table summarizes stock option and stock appreciation right (“SAR”) activity for the three months ended March 31, 2026 (in thousands, except per share amounts, years, and aggregate intrinsic value):

The following table summarizes stock option and SAR activity for the six months ended June 30, 2026 (in thousands, except per share amounts, years, and aggregate intrinsic value):

Options Outstanding SARs Outstanding

5 unchanged sentences

Balance as of December 31, 2025 152,202 $ 9.98 6.1 $ 25,536 11,271 $ 130.00 7.1 $ 794

— — 1,117 191.70

Granted — — 2,889 143.59

Exercised ( 2,067 ) 4.72 — —

Canceled and forfeited ( 458 ) 6.22 ( 489 ) 165.15

Balance as of March 31, 2026 150,908 $ 10.02 5.9 $ 20,563 12,136 $ 134.80 7.1 $ 565

Vested and exercisable as of March 31, 2026 75,833 $ 8.67 5.4 $ 10,435 — $ — 0.0 $ —

As of March 31, 2026, the total unrecognized stock-based compensation expense related to options and SARs outstanding was $ 383 million and $ 146 million, respectively, which is expected to be recognized over a weighted-average service period of five and eight years , respectively.

The weighted-average grant date fair value of SARs granted during the three months ended March 31, 2026 was $ 25.44 per share.

Time-Vesting SARs

The Company grants SARs that vest over explicit service periods of up to ten years and are exercisable at expiration, during a limited window, if the Company’s stock price reaches a certain threshold (“Time-Vesting SARs”).

Time-Vesting SARs have exercise prices of between $ 39 –$ 250 and maximum appreciation values of between $ 60 –$ 300 .

The Company determined the grant-date fair value of Time-Vesting SARs granted using a Black-Scholes option-pricing model, calculated as the difference in fair value between a SAR with a strike price at the exercise price and a SAR with the strike price at its maximum appreciation, using the following assumptions:

Three Months Ended March 31,

Balance as of June 30, 2026 149,677 $ 10.06 5.7 $ 15,957 13,671 $ 131.61 11.1 $ 377

Vested and exercisable as of June 30, 2026 79,177 $ 8.89 5.3 $ 8,534 1,772 $ 113.27 40.0 $ 6

As of June 30, 2026, the total unrecognized stock-based compensation expense related to options and SARs outstanding was $ 361 million, and $ 136 million, respectively, which is expected to be recognized over a weighted-average service period of five and eight years , respectively.

The weighted-average grant date fair value of SARs granted during the six months ended June 30, 2026 was $ 38.00 per share.

The Company grants SARs that vest over explicit service periods of up to approximately ten years and are exercisable at expiration, during a limited window, if the Company’s stock price reaches a certain threshold.

These awards have exercise prices of between $ 39 –$ 250 and maximum appreciation values of between $ 60 –$ 300 .

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

The Company determined the grant date fair value of these awards using a Black-Scholes option-pricing model, calculated as the difference in fair value between a SAR with a strike price at the exercise price and a SAR with the strike price at its maximum appreciation, using the following assumptions:

Six Months Ended June 30,

Expected volatility rate 56.7 % - 57.0 %

9 unchanged sentences

The Company has never paid and has no plans to pay dividends on its common stock, therefore the expected dividend yield is zero.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

The Company also grants SARs that are fully vested and exercisable upon grant, with an exercise price equal to the fair market value of the Company’s common stock on the grant date and contractual periods of up to 40 years.

The Company determined the grant-date fair value of these awards using a Monte Carlo simulation model using the following assumptions:

Six Months Ended June 30,

Expected volatility rate 60.0 %

Expected exercise factor 2.6 x

Risk-free interest rate 4.9 %

Expected dividend yield — %

The expected volatility rate is based on the Company’s implied volatility.

The expected exercise factor represents the multiple of the strike price at which the SARs are expected to be exercised.

The risk-free interest rate is based on the long-term U.S.

Treasury zero coupon issues in effect at the time of grant.

The Company has never paid and has no plans to pay dividends on its common stock, therefore the expected dividend yield is zero.

RSUs and P-RSUs

The following table summarizes the RSU and P-RSU activity for the three months ended March 31, 2026 (in thousands, except per share amounts):

The following table summarizes the RSU and P-RSU activity for the six months ended June 30, 2026 (in thousands, except per share amounts):

RSUs Outstanding Weighted Average Grant Date Fair Value per Share P-RSUs Outstanding Weighted Average Grant Date Fair Value per Share

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Adjustment for performance achievement (1)

Unvested and outstanding as of March 31, 2026 36,576 $ 28.51 101 $ 178.40

Unvested and outstanding as of June 30, 2026 33,249 $ 33.79 121 $ 141.57

(1) This amount represents the difference between the maximum number of shares that could have been issued under the grant and the actual number of shares earned based on final performance.

As of March 31, 2026, the total unrecognized stock-based compensation expense related to the RSUs outstanding was $ 817 million, which the Company expects to recognize over a weighted-average service period of three years .

As of March 31, 2026, there was no unrecognized stock-based compensation expense related to the P-RSUs outstanding.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

As of June 30, 2026, the total unrecognized stock-based compensation expense related to the RSUs outstanding was $ 916 million, which the Company expects to recognize over a weighted-average service period of three years .

As of June 30, 2026, there was no unrecognized stock-based compensation expense related to the P-RSUs outstanding.

Stock-based Compensation Expense

Total stock-based compensation expense was as follows (in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Cost of revenue $ 30,889 $ 14,973 $ 48,795 $ 29,989

5 unchanged sentences

as well as other tax jurisdictions in which it conducts business.

The Company’s effective tax rate as of March 31, 2026 differs from the U.S.

The Company’s effective tax rate as of June 30, 2026 differs from the U.S.

statutory rate primarily due to foreign income taxed at different rates, non-deductible stock-based compensation, other non-deductible expenses, and valuation allowances recorded on its deferred tax assets from the U.S., United Kingdom (“U.K.”), and other jurisdictions .

The provision for income taxes increased by an immaterial amount for the three months ended March 31, 2026 compared to the same period in 2025.

The provision for income taxes increased by $ 12 million and $ 18 million, respectively, for each of the three and six months ended June 30, 2026 compared to the same periods in 2025.

The increases were primarily related to higher U.S.

and foreign profits.

The realization of deferred tax assets is dependent upon the generation of sufficient taxable income of the appropriate character in future periods.

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net operating tax losses, the Company has maintained a full valuation allowance on its U.S.

deferred tax assets as of March 31, 2026.

deferred tax assets as of June 30, 2026.

However, given the Company’s recent earnings and anticipated future earnings, there is a reasonable possibility that it will have sufficient positive evidence in the future to release all or a portion of the valuation allowance it recorded against its deferred tax assets.

The Organisation for Economic Co-operation and Development (“OECD”) Base Erosion and Profit Shifting (“BEPS”) global minimum tax provision (“Pillar Two”) rules are at varying stages of adoption across jurisdictions where the Company operates.

Several countries have enacted Pillar Two and in certain jurisdictions these rules were applicable to the Company starting January 1, 2024.

These did not have a material impact on our financial condition or results of operations for the periods presented.

Furthermore, the OECD released administrative guidance on January 5, 2026, including a “Side-by-Side Safe Harbor”, which reduces the impact of Pillar Two rules on the Company.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

While the United States has not yet adopted Pillar Two, several countries have enacted Pillar Two and these rules were applicable to the Company starting January 1, 2024 in some jurisdictions, and it did not have a material impact on our financial condition or results of operations for the periods presented.

Furthermore, in response to trade negotiations with the United States, the Group of 7 countries (the “G7”) announced a joint understanding to exempt U.S.-parented multinational corporations from Pillar Two by adopting a “side-by-side” system between Pillar Two and the existing U.S.

global minimum tax provisions, and the OECD released “Tax Challenges Arising from the Digitalisation of the Economy – Global Anti-Base Erosion Model Rules (Pillar Two), Side-by-Side Package:

Inclusive Framework on BEPS” on January 5, 2026, to this effect, which reduces the impact of Pillar Two rules on the Company.

Earnings Per Share Attributable to Common Stockholders

The following table presents the calculation of basic and diluted earnings per share attributable to common stockholders (in thousands, except per share amounts):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Net income attributable to common stockholders for diluted earnings per share $ 1,061,890 $ 326,727 $ 1,932,417 $ 540,758

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Diluted earnings per share is calculated using our weighted-average shares of outstanding common stock including the dilutive effect of stock awards as determined under the treasury stock method.

There were outstanding potentially dilutive common stock equivalents for stock-based compensation awards of 2 million for the three months ended March 31, 2026 and an immaterial amount for the three months ended March 31, 2025.

There were outstanding potentially dilutive common stock equivalents for stock-based compensation awards of 3 million for the three and six months ended June 30, 2026 and 1 million for the three and six months ended June 30, 2025.

These were excluded from the computation of diluted earnings per share attributable to common stockholders due to their antidilutive effect.

As of March 31, 2026 and 2025, the Company had 12 million and 6 million Time-Vesting SARs outstanding, respectively, of which the maximum number of potentially dilutive shares of Class A common stock upon vesting would be the fraction that equals the maximum appreciation divided by the Company’s Class A common stock price at that time.

As of June 30, 2026 and 2025, the Company had 14 million and 7 million SARs outstanding, respectively, of which the maximum number of potentially dilutive shares of Class A common stock upon vesting would be the fraction that equals the appreciation, or maximum appreciation if capped, divided by the Company’s Class A common stock price at that time.

Segment and Geographic Information

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Notes to Unaudited Condensed Consolidated Financial Statements

Financial information for each reportable segment was as follows (in thousands, except percentages):

Three Months Ended March 31,

Amount % Amount %

Financial information for each reportable segment, including disaggregation of revenue, was as follows (in thousands, except percentages):

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Amount % Amount % Amount % Amount %

Contribution:

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The reconciliation of total contribution to income from operations is as follows (in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Income from operations $ 912,004 $ 269,317 $ 1,666,002 $ 445,365

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Revenue is as follows (in thousands, except percentages):

Three Months Ended March 31,

Amount % Amount %

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Amount % Amount % Amount % Amount %

United States $ 1,573,047 81 % $ 732,592 73 % $ 2,855,113 80 % $ 1,361,086 72 %

United Kingdom 130,091 8 % 89,654 10 %

Rest of world (1)

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Total revenue $ 1,935,464 100 % $ 1,003,697 100 % $ 3,568,047 100 % $ 1,887,552 100 %

(1) No other country represented 10 % or more of total revenue for the three months ended March 31, 2026 or 2025 .

(1) No other country represented 10 % or more of total revenue for the three and six months ended June 30, 2026 or 2025.

Related Party Transactions

Alexander Karp, the Company’s Chief Executive Officer, flies on a non-commercial aircraft beneficially owned by him (the “Executive Aircraft”) for business and personal travel.

During the three months ended March 31, 2026 and 2025, the Company incurred expenses related to the use of the Executive Aircraft of $ 3 million and $ 5 million, respectively.

During the six months ended June 30, 2026 and 2025, the Company incurred expenses related to the use of the Executive Aircraft of $ 6 million and $ 10 million, respectively.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements