Palantir shares jump 13% as U.S. AI demand sends revenue soaring past targets

Palantir blew past Wall Street’s financial targets in its second quarter and forecast strong growth in the coming months, sending its stock surging 13% in after-hours trading on Monday.

Revenue in the three months ended June 30 increased 93% year over year, totaling $1.94 billion, compared with the $1.801 billion that analysts were expecting. The AI software company posted net income of roughly $1.1 billion, or 41 cents per share, versus the average analyst estimate of 35 cents.

Palantir’s growth was fueled by continued strength in the U.S., where commercial revenue jumped 149% from a year earlier and government revenue climbed 90%.

“Our business is compounding at a rate and scale that we have never before witnessed,” Palantir CEO Alex Karp said in a letter to shareholders, noting that Palantir’s second-quarter net income was more than the company generated in total revenue the year before.

The AI software company also issued another bullish outlook. Pala...