Palantir Technologies delivered second-quarter financial results that surpassed analyst expectations, driving a significant stock price increase. The company reported revenue growth of 93% compared to the prior year, reaching approximately $1 billion. Net income totaled $1.07 billion, or 41 cents per share, compared with roughly $329 million, or 13 cents per share, in the year-ago period.
The software company’s U.S. government revenue expanded 90% year-over-year to $809 million. More notably, U.S. commercial revenue demonstrated exceptional growth, surging 149% from a year earlier to $764 million. When accounting for compounding effects, U.S. commercial revenue has increased 380% since 2024. The company also announced an increase in full-year revenue guidance to between $8.15 billion and $8.16 billion, up from prior guidance of $7.65 billion to $7.66 billion.
Palantir raised its outlook for U.S. commercial revenue to exceed $3.42 billion for 2026, an increase from prior guidance of $3.22 billion. The company’s remaining U.S. commercial deal value more than doubled year-over-year to $6.24 billion. CEO Alex Karp indicated during an interview that the strong growth trajectory is expected to persist for at least another 18 months.
Despite the strong quarterly performance, Palantir shares have declined 29% earlier in the year amid broader market concerns regarding the artificial intelligence software sector and potential growth deceleration. Karp discussed the company’s strategic positioning on open-weight artificial intelligence models and emphasized the importance of competition in the technology sector, particularly in relation to international developments.
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