KTM teammate Edgar Canet won the first stage to hold a one-minute, three-second lead over Sanders.
However, a dominant run in the second stage by Sanders put 1m35s on Canet to take a 30-second lead heading into Tuesday.
The tour from Yanbu to AlUla saw riders cover 504km of mixed terrains, beginning with a slow and technical series of narrow tracks before opening up into sandy plateaus.
Sanders took an early stage lead after catching Canet, who fell inside the first 100km. The pair rode together and wound up first and second by the stage’s end.
It’s the 10th stage win for Sanders in his Dakar Rally career, becoming just the 22nd rider to reach double digits.
“It was a much better stage today and felt more like classic Dakar, with open terrain and a real mix of conditions, which I really enjoyed,” said Sanders.
“I had a good idea of what to expect, which helped with the rhythm, and it was important to get out front, open the stage and stay on top of the navigation, correcting any small mistakes quickly so I didn’t lose time.
“The pace was strong, the bike and my body are feeling really good, and overall it was a very positive day.
“There were some tricky sections, especially after the refuel, but we managed it well and kept a solid flow, which is exactly what you want early on in the rally.”
Despite losing the rally lead, Canet was upbeat.
“I’m really happy with how stage two went – it was an incredible stage for me,” said Canet.
“I had two small crashes early on, one after trying to pass a camel on the piste and clipping a rock, but that’s part of rally racing and I felt fine afterwards.
“Navigation was very tricky in places, especially through the rocky riverbeds where it was difficult to even see the piste, so we had to stop and carefully check the roadbook at times.
“Even opening the stage we didn’t lose much time, and overall I’m pleased with both the navigation and the speed.
“It was a tough stage for everyone, but I’m really enjoying riding here and I’m happy to still be very much in the fight.”
Sanders and Canet had stretched clear of third-placed Ricky Brabec on the top Honda. The rider from the United States sits 2m18s away from Sanders.
Stage 3 of the Dakar Rally continues on Tuesday.
2026 Dakar Rally Bikes Top 10 after Stage 2
| Pos | Num | Rider | Team | Time | Variation | Penalty |
| 1 | 1 | Daniel Sanders | Red Bull KTM Factory Racing | 07h42m24s | ||
| 2 | 73 | Edgar Canet | Red Bull KTM Factory Racing | 07h42m54s | 30s | |
| 3 | 9 | Rickey Brabec | Monster Energy Honda HRC | 07h44m42s | 2m18s | |
| 4 | 68 | Tosha Schareina | Monster Energy Honda HRC | 07h47m05s | 4m41s | |
| 5 | 46 | Ross Branch | Hero Motorsports Team Rally | 07h50m10s | 7m46s | 6m |
| 6 | 77 | Luciani Benevides | Red Bull KTM Factory Racing | 07h52m28s | 10m4s | |
| 7 | 10 | Skyler Howes | Monster Energy Honda HRC | 07h55m01s | 12m37s | |
| 8 | 11 | Ignacio Cornejo | Hero Motorsports Team Rally | 07h56m01s | 13m37s | |
| 9 | 14 | Michael Docherty | BAS World KTM Tean | 07h56m24s | 14m | |
| 10 | 42 | Adrien Van Beveren | Monster Energy Honda HRC | 07h56m33s | 14m9s |












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