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Palantir’s Rule of 40 score jumps to 155% after Q2 results
Palantir also topped Q2 revenue estimates by $130 million and raised full-year guidance to $8.16 billion, with U.S. commercial revenue up 149%.
Yahoo Finance highlights Palantir Technologies’ Q2 earnings as a direct rebuttal to criticism that the company is only an “LLM wrapper,” pointing to a Rule of 40 score of 155%. The Rule of 40, which combines revenue growth with operating profit margin, uses 40% as a benchmark for a strong software business, and Palantir’s score nearly quadrupled that level.
According to the report, the company generated a Rule of 40 score of 155% in the quarter, compared with 64% two years earlier, and with 94% last year. The outlet also notes that Palantir has seen the metric rise in almost every quarter since then.
Yahoo Finance adds that Palantir beat Q2 revenue estimates by $130 million and raised full-year guidance to $8.16 billion. It also said U.S. commercial revenue surged 149%, reflecting a strategy that lets clients own AI model weights and infrastructure rather than renting third-party LLM access.
The outlet frames the results as evidence that investors are increasingly demanding proof of durable AI business performance, including revenue growth and profitability. It says Palantir’s commercial backlog is expanding as a result of that approach.