Palantir revenue surges 93% to $1.94bn despite Gaza war criticism

Palantir Technologies, the US artificial intelligence and data analytics company, reported second-quarter revenue of $1.94 billion on August 4, 2026, a 93 percent jump from a year earlier, and raised its full-year revenue forecast to between $8.15 billion and $8.158 billion, up from a previous range of $7.65 billion to $7.662 billion. Shares surged more than 14 percent in after-hours trading.

Chief Executive Alex Karp called the quarter “otherworldly,” noting that US commercial revenue grew 149 percent from the same period a year earlier.

Revenue from Palantir’s US government business rose 90 percent year-over-year to $809 million. The company holds multibillion-dollar contracts with US agencies, including the Army.

In a shareholder letter, Karp wrote that the business is “compounding at a rate and scale that we have never before witnessed.”

The growth comes despite mounting criticism over the company’s ties to the US and Israeli governments and its role in artificial intelligence and warfare. Founded in 2003 by Karp and Peter Thiel, Palantir opened its first office in Israel in 2015 and expanded work with the Israeli military. After a “strategic partnership” with Israel in January 2024, it significantly grew operations supporting Israel’s military campaign in Gaza and the occupied West Bank.

According to Open Intel, a platform tracking corporate involvement in the war on Gaza, Palantir has recruited former members of Israel’s Unit 8200 cyberintelligence division and its software helps generate military targeting lists by integrating intercepted communications, satellite imagery and other datasets. Palantir UK reiterated support for Israel in a statement to Al Jazeera in 2026.

The company has also faced scrutiny in the UK. In January 2026, the Ministry of Defence awarded it a $323 million contract. A $444 million NHS contract from November 2023 drew criticism over the handling of sensitive health data and heavily redacted documents.

In The Technological Republic, Karp and Nicholas W. Zamiska argue that technology companies should build advanced military AI, a philosophy critics call “techno-fascism.”

Al Jazeera has contacted Palantir for comment.