Palantir Technologies Inc. has exceeded second-quarter earnings expectations, driven by a remarkable surge in its commercial revenue, which more than doubled year-over-year. This strong performance sent the software company’s stock soaring approximately 12% in early trading Monday.
The company reported adjusted earnings per share of 41 cents, surpassing the 35 cents anticipated by LSEG consensus estimates. Revenue for the quarter hit $1.94 billion, outperforming the projected $1.80 billion. This represents a substantial 93% increase in revenue compared to the approximately $1 billion generated in the same period last year. Palantir’s net income for the quarter stood at $1.07 billion, translating to 41 cents per share, a significant leap from the $329 million, or 13 cents per share, recorded in the prior year.
“Forget consensus,” stated CEO Alex Karp in an exclusive interview, emphasizing the unprecedented scale of Palantir’s growth. “To my knowledge, no businesses at our scale has even grown half this much.”
While Palantir has long been recognized for its foundational role in providing sophisticated data analysis software to U.S. government and military entities, its commercial segment has become a significant growth engine. U.S. government revenue saw a robust 90% increase year-over-year, reaching $809 million. However, it’s the commercial sector that’s truly accelerating, with U.S. commercial revenue skyrocketing by 149% from the previous year to $764 million. When considering compounded growth since 2024, this figure jumps an impressive 380%. Looking ahead, Palantir now forecasts U.S. commercial revenue to exceed $3.42 billion for fiscal year 2026, an upward revision from its previous guidance of $3.22 billion.
Further underscoring the strength of its commercial pipeline, Palantir announced that its remaining U.S. commercial deal value has more than doubled year-over-year to $6.24 billion. This robust backlog indicates sustained demand for Palantir’s AI-driven solutions.
The recent surge in Palantir’s stock comes after a period of volatility, with shares having shed 29% year-to-date. This decline was largely attributed to broader market concerns regarding the sustainability of the artificial intelligence software boom and potential deceleration in growth. However, today’s results suggest that Palantir’s growth trajectory remains exceptionally strong.
The company also raised its full-year revenue guidance, projecting a range of $8.15 billion to $8.16 billion, up from its earlier forecast of $7.65 billion to $7.66 billion. CEO Alex Karp expressed confidence in the company’s future, telling CNBC that the current growth momentum “looks like this is going to go on for at least another 18 months.”
Palantir stock chart
Karp has been a vocal advocate for open-weight AI models and has expressed concerns about the potential for concentrated power within the AI landscape, particularly given the rapid advancements in AI capabilities from international competitors. He has also been a prominent voice in the debate surrounding the responsible development and deployment of AI technologies.
Following his widely publicized remarks on CNBC, which ignited broader discussions about AI governance and competition, Karp and Palantir joined other prominent tech leaders in a public appeal to the government, urging against the imposition of restrictions on open-weight AI models. Karp articulated his stance by stating, “We need competition if we’re going to keep model companies honest, which is the same thing as enterprise software.” He further elaborated on the American competitive advantage, asserting, “The way we win in America is we compete, and our open models are going to have to become as good as Chinese open models.” This perspective highlights a belief in open innovation and the necessity of robust competition to drive progress and maintain technological leadership.
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