Palantir Reports 93% Revenue Surge, Raises Full-Year Forecast on Strong US Government and Commercial Growth

American defense-tech company Palantir reported second-quarter results that surpassed analyst expectations, prompting the company to raise its full-year revenue forecast. The stock jumped 12% following the announcement. Revenue for the quarter soared 93% to $1.94 billion, up from $1 billion the previous year, while net income rose to $1.07 billion, or 41 cents per share, compared to $329 million, or 13 cents per share, in the same period last year.

CEO Alex Karp told CNBC, "Forget the forecasts. To my knowledge, no business our size has ever grown even half as fast as this." Palantir's main operations are with the US government and military, where revenues increased 90% to $809 million. Meanwhile, its US commercial revenues surged 149% to $764 million. The company now expects full-year US commercial revenues to exceed $3.42 billion, up from a previous forecast of $3.22 billion. Total revenue guidance was also raised to a range of $8.15 billion to $8.16 billion, compared to the prior $7.65 billion to $7.66 billion estimate.

Karp said the strong growth is expected to continue for at least 18 more months, benefiting from companies' efforts to retain control over their data rather than outsourcing it to AI providers for security reasons. However, due to Palantir's close ties with the Trump administration, some foreign governments are severing relationships, causing foreign customer revenue to drop to 19% of total revenue this quarter from 26% in 2025.

Karp, known as a strong supporter of Israel and an advocate for open-weight AI models with reduced token dependency, reiterated his criticism of AI companies for imposing moral restrictions on technology use. He emphasized that competition drives success in the US and that Palantir's open models must become as effective as China's open AI models.