Palantir Technologies lifted its full-year revenue forecast after reporting stronger-than-expected second-quarter results, driven by continued demand for its artificial intelligence-powered data analytics platform.
The company's shares surged 13.7% in extended trading after it posted earnings that exceeded analysts' expectations.
Palantir reported earnings per share (EPS) of $0.41, ahead of forecasts of $0.34, while revenue rose to $1.94 billion from expectations of $1.81 billion.
Revenue increased 93% from about $1 billion in the same quarter a year earlier. Net income climbed to $1.07 billion, or 41 cents per share, compared with approximately $329 million, or 13 cents per share, a year earlier.
Chief executive Alex Karp highlighted the company's accelerating profitability in a letter to shareholders.
"Put simply, we have now generated more profit in a single quarter than we did in total revenue in the same period the year before.
And the core of our business, in the United States, continues to expand at an unrelenting and breakneck pace."
Palantir's U.S. government revenue increased 90% year-on-year to $809 million. While the company remains best known for supplying software to the U.S. government and military, its commercial business continued to outpace growth.
U.S. commercial revenue jumped 149% from a year earlier to $764 million and has increased 380% since 2024 on a compounded basis. The company now expects U.S. commercial revenue to exceed $3.42 billion in 2026, up from previous guidance of $3.22 billion.
Palantir also said the value of its remaining U.S. commercial deals more than doubled from a year ago to $6.24 billion.
Despite the strong results, Palantir shares have fallen 29% this year amid broader concerns that enthusiasm surrounding artificial intelligence software may be fading and growth could slow.
The company raised its full-year revenue guidance to between $8.15 billion and $8.16 billion, up from its previous forecast of $7.65 billion to $7.66 billion.
Palantir has a market capitalisation of $301.22 billion.
