The performance of the largest supplier of AI to the US military has exploded! Palantir (PLTR.US) raised its full-year forecast sharply, and the CEO bluntly stated that commercial demand was “extraordinary”

The Zhitong Finance App learned that Palantir (PLTR.US) raised its full-year revenue and profit forecasts after announcing second-quarter sales that far exceeded Wall Street expectations, and specifically described commercial demand as “extraordinary.” According to financial reports, Palantir's revenue reached $1.94 billion, up 94.0% year over year, exceeding expectations of $130 million; adjusted earnings per share were $0.41, exceeding expectations of $0.06.

Palantir currently expects adjusted operating profit of US$4.89 billion to US$4.91 billion this year, which is higher than the upper limit of the previously forecast range of US$4.45 billion. The software developer and major military supplier expects full-year sales to reach $8.16 billion, which is higher than the average market estimate of about $7.7 billion.

Alex Karp, CEO of Palantir, said US commercial sales in the second quarter were “amazing”, surging 149% year over year to $764 million, far higher than analysts' average expectations of $7164 million.

A stronger outlook helps ease investors' concerns. Investors previously feared that AI developers such as Anthropic PBC sell their own software, and that governments outside the US are increasingly inclined to cooperate with domestic technology companies, which could damage Palantir's business. In a letter from investors on Monday, Karp responded to concerns that AI up-and-coming companies are replacing its business and pointed out the risk of “letting the model run wild within it.”

Palantir's stock rose 14% to $142.91 during after-hours trading. The stock closed at $125.65 on Monday.

Alex Karp, CEO of Palantir, said: “This quarter's performance has been remarkable. An achievement like this would be amazing for any business; for a company of our size, size, and importance, it's simply amazing.”

Palantir first became famous as a mysterious Silicon Valley startup selling customized data analysis software to the US government and allied forces. Since US President Trump came to power, Karp, Chief Technology Officer Sham Sankar, and other company leaders have increasingly portrayed a pro-American image, published books on the need for the tech industry to be reintegrated into the foundations of the defense industry, and delivered speeches at conferences on the role of AI in war.

Overseas governments have taken note of this trend. While Palantir's US government business remains strong, European leaders have called for a growing need for domestic technology companies to provide software for national security and critical operations. In recent months, French and British officials have taken action to terminate the contract with Palantir due to considerations of technological sovereignty.

In a conference call with analysts on Monday, Karp said, “Sometimes we make decisions that go against our own economic interests. For example, we support a large number of institutions in Europe.” “The growth there is really terrible.”

Palantir's overseas sales increased 33% year over year to $362.5 million. Meanwhile, revenue in the U.S. increased 115% to $1.57 billion.

In a letter to investors and a conference call with analysts, Carp portrayed Palantir's software as an alternative that avoids working directly with AI companies that develop big language models (LLMs).

He praised Palantir's customers for refusing to be a “vassal state of language laboratories” and positioning his company as a service provider that “allows you to change models at any time.”

Chief Financial Officer Dave Glazer said during an analysts' conference call that Palantir's adjusted gross margin for the previous quarter was 86%, a slight decrease from the previous three months because the company covered cloud hosting costs for a government client. He warned that spending will increase in the third quarter due in part to seasonal recruitment of new hires and other product and marketing activities.