Palantir Technologies Inc. raised its full-year revenue and income forecasts after posting second-quarter sales that far exceeded Wall Street estimates. The company described commercial demand for its data analytics tools as "otherworldly," with U.S. commercial sales surging 149% year over year to $764 million. For sales professionals, the numbers signal a major shift: enterprises are spending aggressively on AI-powered analytics, and Palantir is capturing that wave.
Sales surge driven by AI demand
Palantir now expects full-year adjusted income from operations of $4.89 billion to $4.91 billion, up from a previous top end of $4.45 billion. Revenue projections climbed to as much as $8.16 billion, well above the average analyst estimate of roughly $7.7 billion. Chief Executive Alex Karp called the U.S. commercial performance "staggering" in prepared remarks.
The company's shares rose as much as 15% in late trading to $144.65 after the announcement. Palantir has more than doubled its market value since late 2024 to roughly $300 billion.
Palantir's core business is building customized data analysis software for government and military clients, but its commercial arm is growing faster. U.S. revenue overall rose 115% to $1.57 billion, while international sales grew 33% to $362.5 million. The adjusted gross margin was 86%, down slightly after the company took on cloud hosting for a government customer.
CEO hits back at fears of AI upstarts
Investors had worried that Palantir's business would suffer as AI developers like Anthropic sell their own software and as governments outside the U.S. work more with domestic tech firms. Karp addressed those concerns directly in a letter to investors, pointing to the risks of "letting the models loose within their homes." He characterized Palantir's software as an alternative to working directly with large language model companies and praised customers for declining to become "vassal states of the language labs."
"This quarter was otherworldly," Karp said. "Such an achievement would be cause for astonishment in any business; for one of our size, scale, and consequence, it is simply staggering."
International challenges and opportunities
While U.S. sales are booming, Palantir faces headwinds in Europe. Officials in France and the U.K. have moved to end deals with the company as European leaders signal a desire to reduce reliance on U.S. tech. Karp acknowledged the tension on an analyst call: "Sometimes we make decisions that are against our economic interests, like we're supporting lots of institutions in Europe. The growth sucks."
Chief Financial Officer Dave Glazer said expenses will ramp up in the third quarter because of new hires and product and marketing efforts. Despite the European friction, the company's overall international revenue still grew 33%.
Why this matters for sales
Palantir's results show that enterprise buyers are making big bets on AI-powered analytics, and they're choosing specialized platforms over building in-house or buying directly from AI labs. For sales professionals, the takeaway is clear: customers are prioritizing tools that help them control their own data and model decisions, rather than locking into a single AI vendor. The 149% jump in U.S. commercial sales is a signal that AI for Sales is not a future trend - it's happening now, with real budgets behind it. Sales teams should be prepared to position their own offerings around data sovereignty, flexibility, and vendor independence, much like Palantir is doing.
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