Palantir crushes earnings as AI demand sends revenue soaring 93% and prompts another guidance hike

Revenue in the three months ended June 30 increased 93% year over year, totaling $1.94 billion, compared with the $1.801 billion that analysts were expecting. The AI software company posted net income of roughly $1.1 billion, or 41 cents per share, versus the average analyst estimate of 35 cents.

Palantir’s growth was fueled by continued strength in the U.S., where commercial revenue jumped 149% from a year earlier and government revenue climbed 90%.

“Our business is compounding at a rate and scale that we have never before witnessed,” Palantir CEO Alex Karp said in a letter to shareholders, noting that Palantir’s second-quarter net income was more than the company generated in total revenue the year before.

The AI software company also issued another bullish outlook. Palantir expects third-quarter revenue of $2.160 billion to $2.164 billion and adjusted income from operations of $1.292 billion to $1.296 billion. It also raised its full-year 2026 revenue guidance to between $8.150 billion and $8.158 billion, up from its start-of-year forecast of $7.182 billion to $7.198 billion.

Shares of Palantir, which are down roughly 30% this year, jumped 13% to $142.0.1 in after-hours trading following Monday’s earnings report.