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Palantir CEO Alex Karp speaks during an interview on July 27, 2026 in New York City. John Lamparski | Getty Images
Palantir stock rocketed 20% higher on Tuesday after the company reported "otherworldly" second-quarter earnings driven by customer demand for AI sovereign tools. The enterprise software giant reported a 93% growth in overall revenue to $1.94 billion, up from around $1 billion a year ago, and beating LSEG estimates of $1.8 billion. Its commercial revenue jumped 149% to $764 million, and government revenue grew 90% to $809 million. The company expects full-year revenue between $8.15 billion and $8.158 and commercial revenue in excess of $3.424 billion. Palantir was last up 16.3% in premarket trading. Palantir's Co-founder and CEO Alex Karp described the quarter as "otherworldly," adding that the sovereign AI revolution makes them "very optimistic about the future." "Forget consensus," Karp told CNBC's Seema Mody in an exclusive interview. "To my knowledge, no businesses at our scale has even grown half this much."
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Palantir, which designs systems that help companies integrate AI with their existing systems and data, pinned its blowout earnings on growing demand for AI sovereignty as companies seek to keep their data private from frontier AI labs like OpenAI, Google , Anthropic, and Meta . In a letter to shareholders, Karp said "the revolution for independence and AI sovereignty is now well underway," noting that the business has "Marxist" values. "Our customers have declined to become vassal states of the language labs," Karp said in the letter. "Every organization in the world is awakening to the risks of handing the creators of the language models the keys to their institutions, of letting the models loose within their homes." The company's stock has declined 29% so far this year as investors increasingly become cautious on the AI trade.
Stock Chart Icon Stock chart icon Palantir's stock in 2026 so far.