Palantir CEO Alex Karp celebrates 93% revenue growth as stock jumps after blockbuster earnings

“Obviously, we are loving these results and loving what they mean for our customers and, broadly speaking, the West,” Karp said.

In the quarter ended June 30, Palantir delivered one of its strongest quarters yet. Revenue surged 93% year over year to $1.94 billion, easily topping analysts’ expectations of $1.801 billion. The company reported net income of roughly $1.1 billion, or 41 cents per share, ahead of Wall Street’s estimate of 35 cents.

This time, investors also responded positively to the company’s results.

Palantir shares, which had fallen roughly 30% this year after a blistering rally in 2025, surged more than 14% in after-hours trading Monday following the results. The reaction marked a sharp reversal from May, when the company also posted a blowout quarter—including 85% revenue growth and beats on both revenue and earnings—but the stock nevertheless fell about 7% as investors questioned whether expectations had become too lofty.

“We are fully aligned with what’s right and what’s good, and what actually works well in the enterprise. And for the first time people believe us,” Karp said on Monday’s call. “And if you didn’t believe us, you can believe 149% growth in the U.S.,” he said, referring to the company’s U.S. commercial revenue growth in the second quarter.

Behind Palantir’s blockbuster quarter: bigger AI deals and booming U.S. demand

Palantir closed 220 deals of at least $1 million in value in the second quarter, with 98 of the deals of at least $5 million, and 73 deals of at least $10 million. The AI and defense software firm also celebrated continued growth in the U.S. in particular, where commercial revenue jumped 149% from a year earlier and government revenue climbed 90%.

Palantir’s updated guidance suggests the AI boom is still accelerating. The company forecast third-quarter revenue of $2.160 billion to $2.164 billion, above the $2 billion expected by analysts. Palantir also forecast Q3 adjusted income from operations of $1.292 billion to $1.296 billion. It raised its full-year 2026 revenue guidance to between $8.150 billion and $8.158 billion, up from its previous outlook of $7.182 billion to $7.198 billion, while increasing its forecast for U.S. commercial revenue growth to at least 134%.

Shares of Palantir have been under pressure for the past year amid worries that businesses might replace services like Palantir with off-the-shelf “frontier” AI models from companies like OpenAI and Anthropic. Palantir has gone on the offensive to combat the narrative, arguing that the AI models from Silicon Valley companies don’t perform as well and steal customers’ private data (an argument that the other companies dispute).

“Our customers are making the decision to go deep with us with greater urgency and conviction than I’ve ever seen before—choosing AI sovereignty over dependency and compounding their alpha in a way that their competitors and adversaries will forever envy,” Ryan Taylor, Palantir’s chief revenue officer and chief legal officer, said on Monday’s call.

Palantir has also been outspoken about its work for the U.S. military and for its technology’s use in anti-terrorism and border control, policies that have made the company a target of frequent protests.

For Karp, the quarter’s success reinforced what he believes has long distinguished Palantir from its rivals: a culture willing to bet on unconventional ideas before the market catches up.

“We are a colony of believers and artists that are very motivated to drive value, and that sets aside much more than I would have imagined 10 years ago,” Karp said.