Palantir Technologies Inc. posted its strongest quarter to date, crossing $1 billion in revenue for the first time and boosting its full-year outlook, as surging demand for artificial intelligence applications and government efficiency projects under President Donald Trump fueled growth across its U.S. operations.
Shares rose more than 8% Tuesday following the company's quarterly earnings release, lifting the stock to new highs and cementing Palantir's status among the 20 most valuable U.S. companies. U.S. revenue grew 68% to $733 million, with commercial business nearly doubling to $306 million and government revenue rising 53% to $426 million.
CEO Alex Karp called the second-quarter performance a "once in a generation, truly anomalous quarter," during a call with analysts. "We're very proud and we're sorry that our haters are disappointed, but there are many more quarters to be disappointed, and we're working on that too," Karp said.
The Denver-based analytics software provider, known for aggregating and analyzing large data sets for both military and commercial use, has rapidly expanded its AI-driven services. "We continue to see the astonishing impact of AI leverage," Karp added in a statement, emphasizing the firm's vision to support "blue collar" and working-class users. "People with less than a college education are creating a lot value and sometimes more value than people with a college education using our product," he said.
Adjusted earnings reached 16 cents per share, beating analysts' expectations of 14 cents. Net income jumped 144% to $326.7 million, or 13 cents per share, up from $134.1 million, or 6 cents, a year earlier. Total revenue increased 48% from the prior year.
Palantir raised its full-year guidance, now projecting revenue between $4.142 billion and $4.150 billion, compared to the earlier forecast of $3.89 billion to $3.90 billion. It also increased its U.S. commercial revenue target to over $1.3 billion, representing at least 85% year-over-year growth in that segment.
