Palantir Technologies reported second-quarter revenue of $1.94 billion, a 93% year-over-year surge that topped the $1.81 billion consensus and the company's own guidance of roughly $1.80 billion. Adjusted earnings per share came in at $0.41, above the analyst estimate of about $0.35. Shares jumped 7.5% in after-hours trading to $135.12 after closing the regular session at $125.65.
Record U.S. Commercial Growth
U.S. commercial revenue hit $764 million, up 149% from a year earlier. Total contract value in that segment reached a record $2.13 billion, a 153% increase. Remaining deal value in U.S. commercial stood at $6.24 billion, more than double the year-ago figure. The company closed 220 contracts worth at least $1 million during the quarter.
Government Revenue Also Strong
Government revenue rose 90% year-over-year to $809 million, reflecting continued demand from defense and intelligence clients. The combination pushed total revenue well past the $1.5 billion mark for the first time.
Profitability and Guidance
GAAP net income was $1.06 billion, a 55% margin. Adjusted operating margin hit 62%, and the company's Rule of 40 score — revenue growth plus operating margin — climbed to 155. For the full year, Palantir raised its revenue guidance to a range of $8.150 billion to $8.158 billion, representing roughly 82% growth. The previous range topped near $7.66 billion. Adjusted operating profit guidance was lifted to about $4.89 billion, above the $4.51 billion analyst consensus. Adjusted free cash flow guidance was raised to $4.5 billion to $4.7 billion.
CEO on AI Sovereignty
Chief Executive Alex Karp attributed the quarter's performance to demand for what he called 'AI sovereignty' — customers wanting control over their data and decisions rather than relying on outside models. The company has been pushing its platforms for government and commercial clients to build and deploy their own artificial intelligence systems.
For the third quarter, Palantir guided revenue of approximately $2.16 billion. Despite the after-hours pop, the stock remains down about 31% year-to-date and far below its 52-week high of $207.52. Options traders had priced an 11% swing in either direction ahead of the earnings release.
