Palantir Technologies raised its full-year 2026 revenue guidance to $8.15-$8.16B after reporting second-quarter total revenue of $1.935B, up 93% year-over-year, with US commercial revenue climbing 149% to $764M.
The company's commercial division grew faster than government in the quarter. Palantir said it raised full-year commercial revenue guidance to reflect 134% year-over-year growth, a shift the company attributed to increased customer adoption of its sovereign AI tools designed without dependence on large language models.
Co-founder and CEO Alex Karp said in the earnings announcement that customers had "declined to become vassal states of the language labs." Palantir builds AI products on proprietary models rather than third-party foundation models like those from OpenAI or Anthropic.
Palantir's government business, which historically anchored the company, grew 31% in the quarter to $1.171B. Government revenue expanded at one-fifth the rate of commercial revenue. Palantir has spent the past 18 months expanding its commercial sales force and rebranding its product suite around AI capabilities for enterprise customers.
The company's adjusted operating margin expanded to 35% in the second quarter, up from 23% in the same period last year. Palantir attributed the margin improvement to both revenue scale and disciplined cost management.
Stock reaction in after-hours trading reached approximately 10%, according to market data. The company's guidance raise of 82% year-over-year growth for full-year revenue substantially exceeded prior consensus expectations among analysts.
Palantir's commercial revenue has grown faster than government revenue since late 2024. The company has not disclosed the customer count for its commercial division, though it noted in the earnings call that new customer additions accelerated in the second quarter across both segments.
