Palmer -- who missed the 36-hole cut by a wide margin at 24-over-par 166 -- told reporters: "As far as trying to compete in a major championship such as the Open and other tournaments, this is it. I'm through doing that. I will not be doing it anymore."
Palmer drove into trouble at the last hole and was forced to pitch into the fairway. He hit a six-iron to seven feet, but missed the par putt.
The galleries ignored it, giving the seven-time major winner and five-time Champions Tour major winner a standing ovation lasting several minutes.
"It's not fun when you play as poorly as I'm playing, and of course, as you see, my tournaments are really getting down to the very few," said Palmer, who collected 62 PGA Tour titles and 10 more on the elder circuit.
He hasn't won any tournament since the 1988 Crestar Classic on the Champions Tour. He stopped playing PGA Tour majors more than a year ago when he walked away from the Masters.