Palantir Soars 16% on 'Otherworldly' Earnings, AI Sovereignty Demand
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- Palantir reported Q2 revenue of $1.94 billion, up 93% year-over-year, beating LSEG estimates of $1.8 billion
- Commercial revenue jumped 149% to $764 million while government revenue grew 90% to $809 million
- Alex Karp described the quarter as 'otherworldly' and tied growth to AI sovereignty, saying customers have 'declined to become vassal states of the language labs' like OpenAI, Google, Anthropic, and Meta
- Citi analysts said the results 'further weaken the bear case around rising AI competition,' reinforcing Palantir's position as one of the clearest beneficiaries of enterprise AI adoption
- Full-year guidance projects revenue between $8.15 billion and $8.158 billion, with commercial revenue exceeding $3.424 billion
- Palantir's stock is up 16.3% in premarket trading but remains down 29% year-to-date
Why it matters: The 149% commercial growth and 16% premarket surge represent a sharp reversal for a stock down 29% YTD, suggesting that AI sovereignty — customers wanting data kept private from frontier labs — is becoming a durable revenue driver rather than a niche concern. Citi's note directly challenges the bear case that rising AI competition would erode Palantir's enterprise position.
