Palantir Technologies Inc. (NASDAQ:PLTR) stock jumped about 17% in Tuesday’s premarket session after the company reported better-than-expected second-quarter results and raised its outlook, signaling stronger growth and cash generation driven by demand for artificial intelligence.
The company reported second-quarter revenue of $1.94 billion, topping analyst estimates of $1.80 billion. Adjusted earnings came in at 41 cents per share, ahead of the consensus estimate of 35 cents.
Palantir also raised its guidance. The company expects third-quarter revenue of $2.16 billion to $2.164 billion, above estimates of $1.997 billion.
The company also raised its full-year 2026 revenue guidance from a range of $7.65 billion to $7.66 billion to a new range of $8.15 billion to $8.16 billion versus estimates of $7.69 billion.
Sovereign AI Drives Growth
CEO Alex Karp told CNBC the company’s momentum reflects growing demand for sovereign AI. He described it as an approach that allows customers to control their data, technology and the value created from AI deployments.
Karp said Palantir is focused on helping enterprises and governments own their AI capabilities rather than relying solely on open- or closed-source models.
He said the strategy helped drive 93% business growth. U.S. revenue increased 115%, while U.S. commercial revenue climbed nearly 150%.
Margins Remain Strong
Karp said Palantir continues to scale profitably. He highlighted an adjusted free cash flow margin of 63% and a Rule of 40 score of 155.
He added that demand for sovereign AI, combined with the company’s products and partnerships across AI infrastructure, should support strong growth over the next 18 months.
Karp also criticized AI providers that, in his view, capture customers’ intellectual property instead of helping them retain it. He said Palantir’s model allows customers to keep the value created through its software.
Analysts See Commercial Momentum
William Blair analyst Louie DiPalma told CNBC that Palantir continues to post strong commercial growth despite increasing competition from Anthropic and OpenAI.
DiPalma said investors are closely tracking U.S. commercial revenue growth and total U.S. commercial booking value. He noted that U.S. commercial revenue grew about 150% year over year, while total commercial booking value rose about 158%, up from 47% in the prior quarter.
He said the results suggest Palantir is maintaining momentum even as major AI companies expand their enterprise offerings.
DiPalma also said Palantir’s AI platform offers customers greater security and control through open-weight models. He also pointed to Palantir’s government business, including a large NATO contract for its Maven Smart System.
The stock carries a Buy rating with an average price forecast of $187.17. Recent analyst moves include:
- Piper Sandler: Overweight (Maintains forecast to $230.00) (Aug. 4)
- Rosenblatt: Buy (Maintains forecast to $225.00) (July 30)
- Citigroup: Buy (Lowers forecast to $200.00) (July 24)
ETF Exposure
Palantir is a major holding in several exchange-traded funds, including the iShares Expanded Tech-Software Sector ETF (BATS:IGV), where it accounts for 8.36% of assets. It also represents 7.48% of the Global X Defense Tech ETF (NYSE:SHLD) and 7.75% of the First Trust Indxx Aerospace & Defense ETF (NYSE:MISL).
Because of its large weighting, significant inflows or outflows in these ETFs can lead to automatic buying or selling of Palantir shares.
Price Action
PLTR Stock Price Activity: Palantir Technologies shares were up 16.60% at $146.51 during premarket trading on Tuesday, according to Benzinga Pro data.
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