The largest AI supplier to the US military delivers explosive performance! Palantir (PLTR.US) significantly raises full-year guidance, CEO says commercial demand is "extraordinary".

According to Jinzhong Finance APP, Palantir (PLTR.US) raised its full-year revenue and profit forecasts after reporting second-quarter sales that far exceeded Wall Street expectations, describing commercial demand as “extraordinary.” The financial report shows that Palantir's revenue reached $1.94 billion, up 94.0% year-on-year, beating expectations by $130 million; adjusted earnings per share were $0.41, surpassing estimates by $0.06.

Palantir now expects this year's adjusted operating profit to be between $4.89 billion and $4.91 billion, above the previous upper limit of its forecast range of $4.45 billion. The software developer and major defense contractor anticipates full-year sales to reach as high as $8.16 billion, exceeding the market average estimate of about $7.7 billion.

Palantir CEO Alex Karp said that U.S. commercial sales in the second quarter were “stunning,” surging 149% year-on-year to $764 million, far surpassing analysts’ average forecast of $716.4 million.

The stronger outlook helped ease investors’ concerns. Previously, investors worried that AI developers like Anthropic PBC selling their own software and foreign governments increasingly favoring local tech firms might hurt Palantir’s business. In a letter to investors on Monday, Karp pushed back against fears that new AI companies would replace Palantir’s business, pointing to the risks of “letting models run rampant internally.”

Palantir’s share price surged as much as 14% in after-hours trading, reaching $142.91. The stock closed at $125.65 on Monday.

CEO Alex Karp stated, “This quarter’s performance was nothing short of extraordinary. Achieving such results would be impressive for any company; for a company of our size, scale, and importance, it’s simply astonishing.”

Palantir first gained fame as a secretive Silicon Valley startup selling customized data analysis software to the U.S. government and allied militaries. Since President Trump took office, Karp, CTO Shyam Sankar, and other company leaders have increasingly shaped a pro-American image, publishing books on how the tech sector must reintegrate with the defense industrial base and speaking at conferences on AI’s role in warfare.

Overseas governments have taken note of this trend. While Palantir’s U.S. government business remains robust, European leaders have called for a growing need for national tech firms to provide software for national security and critical operations. In recent months, concerned about technological sovereignty, officials in France and the UK have taken actions to end contracts with Palantir.

During Monday’s call with analysts, Karp said, “Sometimes we make decisions against our own economic interests, for example, in Europe where we have supported many institutions,” adding, “Growth there has been downright awful.”

Palantir’s overseas sales grew 33% year-on-year to $362.5 million. Meanwhile, domestic U.S. revenue surged 115% to $1.57 billion.

In his letter to investors and during the analyst call, Karp positioned Palantir’s software as an alternative that allows customers to avoid working directly with AI companies developing large language models (LLMs).

He praised Palantir’s customers for refusing to become “vassal states of language labs,” positioning his company as a provider that “allows you to change models at any time.”

Chief Financial Officer Dave Glazer said in the analyst call that Palantir’s adjusted gross margin last quarter was 86%, down slightly from the previous three months, due to the company covering cloud hosting costs for a government client. He warned that spending would rise in the third quarter, partly due to seasonal new hires and other product and market development activities.