Palantir reported a blockbuster second quarter, beating analyst expectations on both revenue and earnings, sending its shares up 12% in after-hours trading. The company posted adjusted earnings of 41 cents per share on $1.94 billion in revenue, surpassing estimates of 35 cents per share and $1.80 billion in revenue. Total revenue surged 93% year over year, while net income more than tripled to $1.07 billion.
The company’s U.S. government business remained strong, with revenue rising 90% to $809 million. However, the biggest highlight was its U.S. commercial segment, where revenue soared 149% to $764 million. Palantir also reported that its remaining U.S. commercial deal value more than doubled to $6.24 billion, reflecting robust customer demand for its AI software.
Looking ahead, Palantir raised its 2026 U.S. commercial revenue forecast to more than $3.42 billion, up from its previous outlook of $3.22 billion. The company also increased its full-year revenue guidance to $8.15–$8.16 billion, compared with its earlier forecast of $7.65–$7.66 billion.
CEO Alex Karp dismissed Wall Street expectations, saying the company’s growth is unmatched among businesses of its size and that the current momentum could continue for at least another 18 months. Despite the strong earnings, Palantir shares remain down 29% year to date amid broader concerns that enthusiasm for AI software stocks may be cooling.