Palantir posts 149% surge in U.S. commercial revenue

Palantir Technologies reported second-quarter earnings on August 3, 2026, that far exceeded expectations, with revenue nearly doubling from the prior year. The company's U.S. commercial revenue surged 149% to $764 million, driving an 8% after-hours stock jump.

The results highlight a dramatic shift in Palantir's business, as its commercial segment now rivals its traditional government work. U.S. government revenue grew 90% to $809 million, but the commercial acceleration is reshaping the company's trajectory.

This matters because it signals that Palantir's artificial intelligence software is gaining rapid adoption beyond defense and intelligence agencies. CEO Alex Karp told CNBC the growth pace is unprecedented for a company of its size, saying, "To my knowledge, no businesses at our scale has even grown half this much."

Overall revenue reached $1.93 billion, up 93% from about $1 billion a year ago. Net income soared to $1.07 billion, or 41 cents per share, compared to $329 million, or 13 cents per share, in the same quarter last year. The company lifted its full-year revenue guidance to between $8.15 billion and $8.16 billion, up from a prior range of $7.65 billion to $7.66 billion.

Palantir now expects U.S. commercial revenue to exceed $3.42 billion in 2026, raised from earlier guidance of $3.22 billion. Its remaining U.S. commercial deal value more than doubled year over year to $6.24 billion. Despite these gains, Palantir shares have fallen 29% in 2026 amid broader concerns about the AI trade slowing.

Karp said the strong growth "looks like this is going to go on for at least another 18 months." He also emphasized the need for open-weight AI models to compete with Chinese tools, noting that Palantir recently joined a letter urging the government not to restrict such models. "The way we win in America is we compete, and our open models are going to have to become as good as Chinese open models," he said.