Palantir Shares Surge After 93% Revenue Growth in Q2

Palantir Technologies reported second-quarter 2026 financial results featuring 93% year-over-year revenue growth, totaling $1.94 billion and exceeding analyst expectations. The company saw a 149% surge in U.S. commercial revenue to $764 million and a 90% increase in U.S. government revenue to $809 million. Following the report, shares rose more than 16% in premarket and after-hours trading. The company closed 220 deals worth at least $1 million and raised its full-year 2026 revenue guidance to between $8.15 billion and $8.16 billion.

CEO Alex Karp attributed the growth to a shift toward AI sovereignty, where organizations seek tools that protect institutional knowledge and avoid dependency on hosted model providers like OpenAI and Anthropic. Karp noted that these results were achieved with a shrinking sales headcount, discarding conventional business norms. He also criticized Silicon Valley culture and competitors who do not support the U.S. military, stating that Palantir's status as an outsider forced a focus on measurable results.

Despite financial success, the company faces political scrutiny in the United Kingdom. Lawmakers and health professionals have raised concerns over the National Health Service's dependence on Palantir's Federated Data Platform, a contract valued up to £330 million. Critics have called for an independent review to assess the platform's benefits and the risks of relying on a single foreign supplier for public health infrastructure.