Palantir Technologies posted a blowout second quarter, sending shares up as much as 12 percent as the data analytics company continued to ride surging demand for its AI-driven software from both government and corporate customers. The company reported second-quarter revenue of $1.935 billion, up 93 percent from a year earlier.

The growth was broad-based. U.S. commercial revenue, the segment investors watch most closely as a signal of Palantir’s push beyond government contracts, rose 149 percent year-over-year to $764 million. U.S. government revenue grew 90 percent to $809 million, showing that federal demand has not slowed even as the commercial business accelerates.

Profitability kept pace with the top-line growth. GAAP net income attributable to common stockholders came in at $1.062 billion, a 55 percent margin, with diluted earnings per share of 41 cents.

Palantir also raised its outlook for the rest of the year. Full-year 2026 revenue guidance now stands at $8.150 billion to $8.158 billion, with U.S. commercial revenue guidance raised to more than $3.424 billion, implying growth of at least 134 percent for that segment alone. The company lifted its adjusted income from operations guidance to a range of $4.889 billion to $4.897 billion and adjusted free cash flow guidance to between $4.5 billion and $4.7 billion.

For the third quarter specifically, Palantir guided for revenue of $2.160 billion to $2.164 billion and adjusted income from operations of $1.292 billion to $1.296 billion, suggesting the company expects the growth pace to continue rather than level off.

The results extend a run that has made Palantir one of the most closely watched stocks tied to enterprise AI adoption. Investors have rewarded the company’s ability to convert AI platform deals into recurring commercial revenue, a transition that had been slower for Palantir than for some peers until the past few quarters.

The stock’s reaction underscores how closely investors are now tying Palantir’s valuation to its commercial expansion rather than its historical government base. With federal and commercial revenue both accelerating at the same time, analysts said the quarter left little room for skeptics who have questioned whether Palantir’s premium valuation is justified by its growth rate.