Palantir Raises Full-Year Forecast as U.S. Enterprise AI Demand Drives 93% Revenue Surge

Palantir Technologies raised its full-year revenue outlook by nearly $1 billion after reporting a 93% surge in second-quarter sales to $1.94 billion, fueled by an unprecedented 149% explosion in U.S. commercial revenue.

The enterprise software provider’s shares jumped more than 14% in after-hours trading following the announcement, sharply reversing months of stock pressure. Palantir now expects full-year revenue between $8.150 billion and $8.158 billion—up significantly from its prior projection of $7.182 billion to $7.198 billion—while projecting full-year U.S. commercial growth of at least 134%.

For the quarter ended June 30, Palantir recorded net income of approximately $1.1 billion, or 41 cents per share, surpassing Wall Street expectations of 35 cents per share and revenue estimates of $1.801 billion. Looking ahead to the third quarter, the Denver-based company projects revenue between $2.160 billion and $2.164 billion, comfortably outpacing analysts’ $2 billion consensus, alongside adjusted operating income of $1.292 billion to $1.296 billion.

The acceleration in U.S. business adoption stems largely from high-volume deal execution and Palantir’s Artificial Intelligence Platform (AIP) bootcamps, which allow corporate clients to deploy custom AI workflows directly onto proprietary datasets. Palantir closed 220 transactions valued at $1 million or more during the second quarter, including 98 contracts worth at least $5 million and 73 exceeding $10 million.

Government operations also expanded sharply, with U.S. defense and intelligence revenue rising 90% year-over-year. The results highlight growing institutional demand for enterprise-grade deployment over general-purpose language models.

Addressing investors on Monday evening, Chief Executive Officer Alex Karp vigorously defended Palantir’s specialized architecture against general-purpose AI offerings from Silicon Valley frontier labs like OpenAI and Anthropic. “We are fully aligned with what’s right and what’s good, and what actually works well in the enterprise,” Karp said on the call, taking jabs at Silicon Valley competitors who “eat vegetables” and decline military work. “And if you didn’t believe us, you can believe 149% growth in the U.S.”

The market rally marks a stark departure from May, when Palantir stock dropped 7% despite an 85% top-line gain due to concerns over valuation and potential displacement by foundation models. Palantir shares had fallen roughly 30% earlier this year following a massive rally in 2025. Chief Revenue Officer Ryan Taylor noted that corporate clients are prioritizing “AI sovereignty over dependency,” opting for internal data security over external model integration.

“Our customers are making the decision to go deep with us with greater urgency and conviction than I’ve ever seen before,” Taylor said. Karp described Palantir as a “colony of believers and artists” focused on unconventional bets, adding that the quarter served as a validation of its long-term strategy for both corporate and Western defense clients.