Palantir shares jumped 15% in pre-market trading Tuesday after the company posted results that CEO Alex Karp called "otherworldly." Revenue for the second quarter hit $1.57 billion, up 115% year-over-year, and management immediately raised its full-year outlook by nearly $500 million.
The earnings beat ran deeper than headline numbers. Government revenue alone climbed 90% to $809 million, while commercial customers also fired on all cylinders. Adjusted earnings per share came in at $0.41, crushing analyst estimates of $0.34. Even GAAP earnings tripled to $0.41 from $0.13 in the same quarter last year.
What matters most: this quarter proved Palantir's artificial intelligence expansion has far more runway than some on Wall Street assumed. The company pulled strength from both sides of its business, government and commercial alike, suggesting the AI momentum isn't a one-time pop but something structural taking hold.
Karp didn't stop at celebrating the numbers. He used the earnings call to take aim at large language model developers like OpenAI and Anthropic, accusing them of trying to lock companies into dependencies. "We have people trying to drug addict us to a future they believe they control," Karp said on CNBC. Palantir, he argued, has always refused what he called parasitic partnerships and will keep doing so.
The stock performance now positions Palantir among this earnings season's strongest movers. Wall Street had room to surprise itself on this one.
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