Palantir's stock jumped 12% after the company posted Q2 earnings that beat Wall Street's revenue and profit targets, driven by a surge in US commercial demand. The company also raised its full-year revenue guidance and more than doubled its remaining US commercial deal value to $6.24 billion. The gains come even as international revenue keeps shrinking as a share of the business.
Palantir shares jumped 12% after the company reported Q2 results that beat estimates on both lines. The company posted adjusted earnings of 41 cents a share on $1.94 billion in revenue, topping analyst forecasts of 35 cents and $1.80 billion.
Commercial demand drives 93% revenue growth
Revenue climbed 93% from about $1 billion a year earlier, and net income reached $1.07 billion, or 41 cents per share, up from about $329 million, or 13 cents per share, in the year-ago quarter. US government revenue grew 90% to $809 million, but the sharper move came from the private sector: US commercial revenue surged 149% to $764 million, a gain that compounds to 380% growth since 2024.
Karp told CNBC: "To my knowledge, no businesses at our scale has even grown half this much."
Palantir raises full-year and Q3 guidance
Palantir lifted its full-year revenue guidance to $8.15 billion to $8.16 billion, up from a prior range of $7.65 billion to $7.66 billion, and now expects US commercial revenue in excess of $3.42 billion, up from prior guidance of $3.22 billion. Remaining US commercial deal value more than doubled from a year ago to $6.24 billion, the company said.
For Q3, Palantir guided for revenue of $2.16 billion to $2.164 billion, above the $2.002 billion Wall Street had expected. Total contract value closed the quarter at $3.37 billion, up 49% from a year earlier, with $2.13 billion of that tied to US commercial deals. Adjusted free cash flow reached $1.22 billion, the first time the figure has crossed the $1 billion mark.
Sovereign AI demand narrows the global mix
A shift toward sovereign AI systems — companies keeping full control over their own models and data — is fueling the growth, Karp told MarketWatch. Chief Financial Officer David Glazer told MarketWatch that US revenue now makes up 81% of the total business, up from 73% a year earlier.
That shift comes at the expense of international sales. Roughly 19% of quarterly revenue came from international customers, down from 27% in 2025, as the business increasingly leans on its home market.
Despite Monday's rally, Palantir shares had lost 29% this year heading into the report, amid broader concerns that AI software growth could slow.
Sources: CNBC, Financial Times, MarketWatch
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