Databricks announced it has surpassed a $7 billion annual recurring revenue (ARR) run-rate in the second quarter, growing more than 80% year over year. The company also closed a $5 billion strategic funding round led by Coatue, valuing it at $190 billion, according to saastr.com.
The company’s growth accelerated sharply over the past year, increasing from 50% to 80% growth in just four quarters. This 30-point acceleration occurred between $4 billion and $7 billion in revenue run-rate, defying the typical trend of deceleration at this scale. Databricks added approximately $1.5 billion in run-rate between the January and April quarters, maintaining the 80% growth rate in the most recent quarter.
This level of growth at such a large scale is rare in enterprise software, where companies usually experience slowing growth as revenues rise. Databricks’ $7 billion ARR and sustained 80% growth rate position it ahead of other major players in the sector. The company also reported a $1.5 billion revenue run-rate for its Lakehouse product, growing over 100% year over year, and positive adjusted free cash flow.
Databricks’ latest funding round and revenue milestone highlight its strong market position. The company’s CEO, Ali Ghodsi, shared these updates on August 13, 2026, marking a significant moment in Databricks’ growth trajectory.