Palantir soars 12% on blowout quarter, with U.S. commercial revenue soaring nearly 150%

Palantir reported a blowout second-quarter earnings on Monday, surpassing Wall Street estimates. The company's revenue surged 93% year-over-year, reaching $1 billion. Net income for the quarter was $1.07 billion, or 41 cents per share, up from $329 million, or 13 cents per share in the same period a year ago. CEO Alex Karp expressed astonishment at the company's growth, stating that no business at Palantir's scale has ever grown by half as much.

Palantir's U.S. government revenue grew 90% to $809 million, while commercial revenue nearly doubled to $764 million, a 149% increase from a year ago. When accounting for compounding, commercial revenue has jumped 380% since 2024. The company now anticipates U.S. commercial revenue exceeding $3.42 billion in 2026, up from previous guidance of $3.22 billion. Palantir's remaining U.S. commercial deal value has also more than doubled to $6.24 billion.

Despite a 29% year-to-date decline in Palantir shares due to concerns about the AI software trade's growth slowing, the company has raised its full-year revenue guidance to $8.15 billion to $8.16 billion from the prior forecast of $7.65 billion to $7.66 billion. CEO Alex Karp remains optimistic, predicting that this growth trend will continue for at least another 18 months.

Karp is a strong advocate for open-weight models and has joined other tech leaders in urging the government not to restrict these models. He believes that competition is essential for maintaining model companies' integrity and that Palantir's open models must become as robust as Chinese counterparts.