Palantir Q2 revenue jumps 93% to $1.94bn, beating estimates
Palantir reported a 93% year-on-year revenue rise to $1.94bn in the second quarter, beating Wall Street expectations and lifting shares 10%. The company raised its full-year forecast, even as analysts question whether its growth streak can last.
Palantir has delivered second-quarter results that far exceeded market forecasts. The AI and analytics firm said overall revenue reached $1.94bn, up 93% from the same period last year, while analysts had expected around $1.8bn. In the immediate aftermath, the company’s share price jumped 10%.
The growth was driven by both commercial and government business. US government contract revenue rose 90% year over year to $809m, despite mounting criticism of Palantir’s work with governments, including its significant involvement in the Trump administration’s immigration efforts.
CEO Alex Karp called the three months “otherworldly,” noting that US commercial revenue climbed 149% year over year and total revenue rose 93%. The company also said it expects the momentum to continue, projecting third-quarter revenue of $2.160bn to $2.164bn. For the full year, Palantir raised its outlook to $8.150bn-$8.158bn, compared with an earlier forecast of $7.65bn-$7.66bn.
Analysts remain cautious about whether this pace can be sustained. Jacob Bourne of Emarketer said there is strong evidence that existing customers are loyal to Palantir, and the company has been “the clearest counter-example to the claim that enterprise AI doesn’t scale past pilots.” However, he added that the results do not resolve whether artificial intelligence could eventually collapse the software layer Palantir occupies — a concern that has weighed on its stock price this year.
Karp used his shareholder letter and pre-earnings interviews to criticise large language model developers such as OpenAI and Anthropic. He argued that Palantir’s clients want to keep control of their data and are reluctant to hand proprietary information to AI labs that rely on ingesting vast amounts of content to train their systems. This, he suggested, is one reason customers are choosing Palantir.
“The models have grown and thrived by essentially ingesting the entire written work product of our civilization,” Karp wrote. He also said Palantir has “always declined, and will continue to decline, entering into a parasitic relationship with our partners.”
