Palantir shares shot up nearly 13% in after-hours trading Monday after posting a second quarter that blew past expectations. Revenue reached $1.94 billion, a massive 93% jump from the same period last year, while the company also raised its full-year guidance as AI demand accelerates across both commercial and government sectors.
The numbers tell a story of a company firing on all cylinders. US operations nearly doubled, climbing 115% year-over-year to $1.57 billion and representing more than 81% of total sales. The real surprise came from commercial revenue, which surged 149% to $764 million, while government contracts grew a solid 90% to $809 million.
Deal Flow and Profitability Shine
Palantir closed 220 deals worth $1 million or more during the quarter. Among those, 98 contracts hit the $5 million threshold and 73 cleared $10 million. CEO Alex Karp credited the results to mounting demand for sovereign AI systems, tools that let companies and governments keep tight control over their data and decision-making processes without relying on external infrastructure.
What stands out even more than growth is the profit engine underneath. The company reported $1.06 billion in net income, translating to a 55% margin, while adjusted operating income hit $1.19 billion with a 62% margin. Cash from operations totaled $1.22 billion. Combined with the 93% revenue growth, Palantir's Rule of 40 score hit 155%, a metric that blends growth rate with operating margin and rarely reaches triple digits.
Total contract value climbed 49% year-over-year to $3.37 billion, with US commercial contract value rising 153% to a record $2.13 billion. By quarter end, the company held $9.2 billion in cash and short-term Treasury securities, leaving plenty of room to invest in growth or return capital to shareholders.
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