Palantir Technologies shares jumped more than 12 percent in after-hours trading after it reported second-quarter results. Revenue rose 93 percent from a year earlier, beating market expectations, and the company raised its full-year forecast for a third straight quarter.

On Aug. 3, according to foreign media outlets including SiliconANGLE, Palantir posted adjusted earnings of 41 cents per share and revenue of $1.935 billion for fiscal 2026 second quarter ended June 30.

That compared with earnings of 16 cents per share and about $1.0 billion in revenue a year earlier. The market had expected earnings of 35 cents per share and revenue of $1.81 billion, but the company topped both. The 93 percent revenue growth also surpassed the previous quarter’s 85 percent, marking the company’s fastest growth rate on record.

The improvement was led by its U.S. business. U.S. revenue rose 115 percent to $1.573 billion. U.S. commercial revenue climbed 149 percent to $764 million, and U.S. government revenue increased 90 percent to $809 million. Both commercial and public-sector businesses grew, but expanding private demand stood out.

Contract sizes also increased. Palantir signed 220 contracts worth more than $1 million during the quarter, including 98 deals above $5 million and 73 above $10 million. Total contract value was $3.373 billion, up 49 percent from a year earlier. U.S. commercial contract value hit a record $2.132 billion, while remaining U.S. commercial deal value not yet recognized as revenue rose 124 percent to $6.238 billion.

Profitability and cash generation also improved. Net income attributable to common shareholders was $1.062 billion, more than triple $326.7 million a year earlier. Adjusted operating income was $1.194 billion and the operating margin was 62 percent. On an unadjusted basis, operating income was $912 million with a margin of 47 percent. Operating cash flow was $1.216 billion, and adjusted free cash flow was $1.22 billion.

The company held $9.2 billion at quarter-end, including cash and cash equivalents and short-term U.S. Treasury bills. Its Rule of 40 score, a management and investment metric requiring the sum of revenue growth and adjusted operating margin to exceed 40 percent, rose to 155 percent.

Co-founder and Chief Executive Alex Karp (알렉스 카프) said in the earnings statement that demand for AI sovereignty has now exploded. He said Palantir is the only company to have proved it can convert tokens into real economic value. Karp described the quarter as an "unrealistic" performance.

Palantir gave third-quarter revenue guidance of $2.16 billion to $2.164 billion. That is about 8 percent above market expectations. It forecast adjusted operating income of $1.292 billion to $1.296 billion for the period.

It also raised its full-year revenue guidance to $8.15 billion to $8.158 billion. That was above the $7.65 billion to $7.662 billion range it presented three months earlier. The company forecast full-year U.S. commercial revenue will rise at least 134 percent to exceed $3.424 billion. It raised its full-year adjusted operating income outlook to $4.889 billion to $4.897 billion, and lifted adjusted free cash flow guidance to $4.5 billion to $4.7 billion.

Palantir shares had been down about 40 percent from a fiscal 2025 fourth-quarter peak before the earnings release. The options market had been pricing in a 12 percent move in either direction around the results. Ahead of the release, analysts set a $200 price target on Palantir and called it the "best AI growth asset."