Palantir CEO Alex Karp reports 'otherworldly' second-quarter earnings as stock surges nearly 20% on Tuesday.
Palantir stock surged nearly 20% on Tuesday after the company reported second-quarter results that exceeded analyst expectations. The company reported a 93% year-over-year growth in overall revenue to $1.94 billion, while commercial revenue jumped 149% to $764 million. Alex Karp described the quarter as 'otherworldly,' attributing the growth to the 'sovereign AI revolution' where companies seek to keep their data private from major AI labs. The company raised its full-year revenue guidance to between $8.15 billion and $8.158 billion. Despite a 29% decline in stock price year-to-date, analysts remain bullish. Citi analysts noted that the results weaken the bear case for AI competition, positioning Palantir as a clear beneficiary of enterprise AI adoption. The company also reported $1.22 billion in adjusted free cash flow, topping estimates of $1 billion.