Palantir blew past Wall Street’s financial targets in its second quarter and forecast strong growth in the coming months, sending its stock surging 13% in after hours trading on Monday.
Revenue in the three months ended June 30 increased 93% year-over-year, totaling $1.94 billion, compared to the $1.801 billion that analysts were expecting. The AI software company posted net income of roughly $1.1 billion, or 41 cents per share, versus the average analyst estimate of 35 cents.
Palantir’s growth was fueled by continued strength in the U.S., where commercial revenue jumped 149% from a year earlier and government revenue climbed 90%.
“Our business is compounding at a rate and scale that we have never before witnessed,” Palantir CEO Alex Karp said in a letter to shareholders, noting that Palantir’s second-quarter net income was more than the company generated in total revenue the year before.
The AI software company also issued another bullish outlook. Palantir expects third-quarter revenue of $2.160 billion to $2.164 billion and adjusted income from operations of $1.292 billion to $1.296 billion. It also raised its full-year 2026 revenue guidance to between $8.150 billion and $8.158 billion, up from its start-of-year forecast of $7.182 billion to $7.198 billion.
Shares of Palantir, which are down roughly 30% this year, jumped 13% to $142.0.1 in after hours trading following Monday’s earnings report.
Subscribe to Fortune Gulf Brief. Every Tuesday, this new newsletter delivers clear-eyed, authoritative intelligence on the deals, decisions, policies, and power shifts shaping one of the world’s most consequential regions, written for the people who need to act on it.