Palantir Technologies delivered second-quarter results that exceeded Wall Street expectations across key metrics and raised its full-year revenue guidance, prompting a sharp rise in the stock in after-hours trading. The company posted revenue of $1.94 billion, representing 93% growth from the prior year and surpassing both analyst estimates near $1.81 billion and its own prior outlook of roughly $1.80 billion.

Adjusted earnings reached 41 cents per share, ahead of the approximately 35 cents that analysts had projected. The results marked an acceleration from the 85% revenue growth recorded in the first quarter.

Commercial Segment Leads Growth

U.S. commercial revenue drove much of the outperformance, climbing 149% year over year to $764 million. Government revenue increased 90% to $809 million. Overall U.S. revenue grew 115% year over year.

Profitability strengthened in parallel. GAAP net income came in at $1.06 billion, equating to a 55% margin, while the adjusted operating margin reached 62%. The company’s Rule of 40 score, combining revenue growth and operating margin, stood at 155%.

Deal activity expanded notably. Palantir closed 220 contracts valued at $1 million or more and recorded a record $2.13 billion in U.S. commercial total contract value, up 153%. Remaining deal value in the U.S. commercial segment rose to $6.24 billion, more than double the year-earlier level, providing visibility into future revenue.

Management framed the quarter around rising demand for AI tools that keep control of data and decision-making with customers rather than external models. Commercial demand was separately described as otherworldly.

Full-Year Outlook Raised Sharply

Palantir now expects full-year 2026 revenue between $8.150 billion and $8.158 billion, implying roughly 82% growth. The previous guidance range topped out near $7.66 billion. Adjusted operating profit guidance was lifted to about $4.89 billion, above the $4.51 billion analysts had anticipated. Adjusted free cash flow is projected in a range of $4.5 billion to $4.7 billion.

For the third quarter, the company guided to revenue of approximately $2.16 billion. The raised full-year targets and accelerated commercial bookings point to sustained momentum in both commercial and government segments.

Stock Reaction and Technical Context

Shares closed regular trading at $125.65, up 2.10% on the day, before climbing more than 7% in after-hours trading to around $135.12. Options markets had priced in a potential move of roughly 11% in either direction ahead of the report.

Even after the after-hours advance, the stock remained well below its 12-month high of $207.52. On the daily chart, price traded below key moving averages, maintaining a bearish structure, while shorter timeframes turned constructive following the results. One analyst described the company as the best publicly traded technology firm on the strength of the report.

The earnings beat and guidance increase created a divergence between the longer-term technical picture and the immediate reaction to the fundamental news. Volatility remained elevated, with daily ranges continuing to show wide swings.

Background on Valuation and Competition

Prior to the report, the stock had declined about 31% for the year and traded roughly 40% below its all-time high. Valuation remained elevated relative to revenue, and concerns about competition from other enterprise AI providers had featured in market discussions. Some investors had positioned for further downside, while the average analyst price target stood well above recent levels.

The second-quarter results and updated guidance address several of those points by demonstrating accelerating commercial growth, expanded contract values, and higher profitability metrics. The coming sessions will show how the market digests the combination of strong fundamentals and the prevailing technical setup.