Palantir Technologies Inc. (NASDAQ:PLTR) stock jumped 29.5% Tuesday, which was its second-best day ever after the company posted what CEO Alex Karp called an "otherworldly" second quarter. Revenue beat estimates, and growth happened quickly instead of slowing. Palantir raised its full-year guidance again.
Revenue rose 93% to $1.94 billion, beating the $1.80 billion analysts expected. Commercial revenue jumped 149% to $764 million. Karp said the surge comes from companies demanding "AI sovereignty." They want to keep their own data private from AI labs like OpenAI and Anthropic, rather than handing those labs the keys to their business.
Citi analysts said the results "further weaken the bear case around rising AI competition." This makes you wonder: is Palantir proving AI sovereignty is a real, durable business worth this scale of rally? Growth is accelerating since overall revenue rose 93%, commercial revenue rose 149%, and commercial revenue has climbed 380% since 2024 once you compound the growth. Palantir Technologies Inc. (NASDAQ:PLTR) raised its guidance for the second time this year, from an original forecast under $7.7 billion to $8.15 billion to $8.16 billion now.
Remaining U.S. commercial deal value more than doubled to $6.24 billion, which means much of that future revenue is already locked in. Karp said the growth "looks like this is going to go on for at least another 18 months." Net income hit $1.07 billion, and adjusted earnings per share came in at 41 cents, up from just 13 cents a year ago. Even after the 30% surge, shares were still down for the year as of August 3, a sign of how far the AI-trade selloff had pushed the stock before this quarter.
France's domestic intelligence agency already dropped Palantir for a French rival. Palantir is also fighting to keep a London police contract it stands to lose. A quarter this extraordinary can still give some ground back the next day.
BigBear.ai Holdings, Inc. (NYSE:BBAI) is a much smaller defense-focused AI company that posted its second-quarter results in late July. Revenue rose 13% to $36.7 million, and gross margin jumped sharply to 32.8% from 25%. It was helped by its Ask Sage generative AI platform.
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