Palantir nearly doubles revenue to $1.94bn, raises full-year outlook on AI demand

Palantir Technologies reported second-quarter results on Monday that blew past analyst estimates, sending its shares up roughly 10% in after-hours trading. Total revenue reached $1.94 billion, a 93% increase from the same period a year earlier and well above the $1.80 billion consensus. The company also raised its full-year revenue and profit forecasts, citing accelerating demand for its AI software from both government and commercial customers.

US commercial business takes off

Revenue from US commercial clients grew 149% year-over-year to $764 million, nearly matching the $809 million brought in from US government contracts (up 90%). The surge was driven by Palantir's Artificial Intelligence Platform (AIP), which helps enterprises embed AI into their operations. CEO Alex Karp described the quarter as "otherworldly" and said the company is compounding at a rate and scale never before witnessed.

This quarter was otherworldly: our US commercial revenue grew 149% year-over-year, our overall revenue grew 93% year-over-year.

Karp also took aim at large language model labs, arguing that customers want control over their proprietary data rather than handing it over to train external models. "Palantir is the only company that has demonstrated it can transform tokens into actual economic value," he said.

Our customers trust us to provide them with maximal control over their operations, data, and decisions. Their competitive advantage should never become the training data for future models.

Guidance lifted across the board

Palantir raised its full-year 2026 revenue outlook to between $8.150 billion and $8.158 billion, up from the previous range of $7.65 billion to $7.66 billion. The US commercial revenue forecast was lifted to more than $3.424 billion, from $3.224 billion earlier. For the third quarter, the company expects revenue of $2.160 billion to $2.164 billion, above the $2 billion analyst estimate. Adjusted income from operations is now seen at $4.89 billion to $4.91 billion for the full year.

Adjusted earnings per share came in at 41 cents, beating the 35-cent consensus. Net income for the quarter was about $1.06 billion.

International headwinds

While US revenue climbed 23% to $1.57 billion, Palantir faces growing pushback abroad. France's domestic intelligence agency signed a deal with ChapsVision in June, and Germany's armed forces have excluded Palantir from contracts. Officials in Denmark and the Netherlands have expressed a desire to uncouple from the US-based software group, and UK contracts remain under significant scrutiny. The international pullback has made Palantir increasingly reliant on its home market, with roughly 19% of total revenue coming from outside the US.

Market reaction and analyst views

Shares jumped about 10% after hours, recovering some of the 25% year-to-date decline that had weighed on the stock amid fears of AI-induced disruption. Emarketer analyst Jacob Bourne said Palantir has been "the clearest counter-example to the claim that enterprise AI doesn't scale past pilots," but cautioned that the results do not settle whether AI eventually collapses the software layer Palantir occupies. The company's deepening ties to the Trump administration, including its role in immigration enforcement and the Maven targeting system used in strikes against Iran, continue to draw opposition from activists and some international partners.