Palantir (NASDAQ: PLTR) stock jumped 15% in pre-market trading on Tuesday, August 4, as the company delivered what the CEO Alex Karp described as ‘otherworldly’ quarterly performance, exceeding Wall Street expectations in almost every category.
Most notably, Palantir’s second-quarter revenue rose 115% year-over-year and 23% quarter-over-quarter to $1.57 billion, prompting the management to raise its full-year revenue outlook by nearly $500 million.
However, the report was more than just an earnings beat, as it also strengthened the view that the company’s artificial intelligence (AI) expansion has more room to run than some investors had expected.
Palantir stock rallies after an ‘otherworldly’ quarter
Thanks to the extraordinary results, Palantir has emerged as one of the strongest performers this earnings season.
Growth was driven by strength across both commercial and government customers. Most importantly, U.S. government revenue increased 90% year over year to $809 million, highlighting continued demand despite ongoing criticism over Palantir’s government work.
Adjusted earnings per share came in at $0.41, comfortably ahead of analyst expectations of $0.34. GAAP earnings per share also reached $0.41, up sharply from $0.13 in the same quarter last year.
Following the report, Karp also seized the opportunity to criticize large language model developers (LLM) such as OpenAI and Anthropic, arguing that many are reluctant to hand over sensitive data to AI model providers.
“We have people trying to drug addict us to a future they believe they control… They want to tell you we have to march into a future where we own nothing, where our businesses aren’t profitable, where none of us have jobs, and where our adversaries win,” Karp said in an interview with CNBC.
He added that Palantir has deliberately chosen a different approach, saying the company has ‘always declined, and will continue to decline’ what he called a parasitic relationship with the partners.
Featured image via Shutterstock
