Palantir stock jumps nearly 30% after 'otherworldly' quarter as US commercial business booms

Key Points:

• Palantir (PLTR) stock surged nearly 30% after reporting fiscal Q2 results that exceeded analyst expectations, with adjusted earnings of $0.41 per share versus $0.35 expected and revenue of $1.94 billion beating the $1.8 billion forecast.
• The company raised its full-year revenue guidance to $8.16 billion, up from prior estimates of $7.65 billion to $7.66 billion, driven by strong growth in U.S. commercial revenue (149% year-over-year) and U.S. government revenue (90% year-over-year).
• Palantir closed 220 deals worth $1 million or more in Q2, including 73 deals exceeding $10 million, and reported $1.22 billion in adjusted free cash flow, surpassing estimates of $1 billion.
• CEO Alex Karp highlighted optimism about the "sovereign AI revolution," while the company emphasized its competitive edge in enterprise AI infrastructure, contrasting its value-driven approach with competitors' costly but less effective AI token usage.
• Despite a roughly 3% decline year-to-date amid earlier AI market disruption fears, Wall Street remains bullish with 22 Buy ratings, including a recent upgrade by D.A. Davidson’s Gil Luria who praised Palantir’s AI orchestration capabilities.