Shares in Palantir Technologies Inc. surged more than 12% in late trading today after the big data analytics company crushed second-quarter expectations and raised its full-year guidance for the third consecutive quarter.

For its fiscal 2026 second quarter that ended on June 30, Palantir reported adjusted earnings per share of 41 cents, up from 16 cents per share in the same quarter of last year, on revenue of $1.935 billion, up 93% year-over-year. Both figures came in ahead of the 35 cents per share and revenue of $1.81 billion expected by analysts.

Notably, the 93% revenue increase topped the 85% increase posted in the first quarter, which had been the company’s previous record.

U.S. revenue grew 115%, to $1.573 billion. Commercial customers in the U.S. accounted for $764 million of that, a 149% rise. The government side of the domestic business reached $809 million, up 90%.

Deal counts kept climbing. Palantir closed 220 contracts worth at least $1 million during the quarter, among them 98 above $5 million and 73 above $10 million. Total contract value came in at $3.373 billion, up 49% year-over-year. U.S. commercial contract value hit a record $2.132 billion, a 153% increase. U.S. commercial remaining deal value, contracted revenue not yet recognized, ended June at $6.238 billion, up 124% year-over-year.

Net income attributable to common stockholders came in at $1.062 billion, more than triple the $326.7 million booked a year earlier. Adjusted operating income was $1.194 billion on a 62% margin. Unadjusted operating income of $912 million worked out to a 47% margin. Cash from operations reached $1.216 billion and adjusted free cash flow $1.220 billion.

The company ended the quarter with $9.2 billion in cash, cash equivalents and short-term U.S. Treasury securities. Its Rule of 40 score, the sum of revenue growth and adjusted operating margin, hit 155%.

“Demand for AI sovereignty has now been unleashed. And Palantir is the only company that has demonstrated it can transform tokens into actual economic value,” co-founder and Chief Executive Alex Karp said in the company’s earnings release. “This quarter was otherworldly.”

For the third quarter, Palantir guided to revenue of $2.160 billion to $2.164 billion, roughly 8% above analyst estimates, with adjusted operating income of $1.292 billion to $1.296 billion.

Full-year revenue guidance went up to between $8.150 billion and $8.158 billion, growth of about 82%. Three months ago, the company was pointing at $7.65 billion to $7.662 billion. U.S. commercial revenue is now expected to top $3.424 billion, a gain of at least 134%. Adjusted operating income guidance was lifted to $4.889 billion to $4.897 billion and adjusted free cash flow guidance to $4.5 billion to $4.7 billion.

Palantir shares had fallen about 40% from their fourth-quarter 2025 peak heading into the results, and options traders had positioned for a swing of 12% in either direction. Baird analyst William Power had a $200 price target on the stock heading into the report, calling it the ‘premier AI growth asset.’

Image: Palantir