Palantir raises full-year forecast on higher US demand for AI software

In short: Palantir says more US customers want its AI software, and the company raised its revenue forecast for the year.

What's going on

Palantir, a US software company that sells tools to governments and businesses, said it expects higher demand from US groups for its AI software. AI software is computer programs that can analyze large amounts of information and help people make decisions (like a very fast assistant that spots patterns).

On Monday, Palantir raised its forecast for full-year revenue to at least $8.15bn. It also said it expects US commercial revenue, meaning sales to US businesses, of $3.4bn. Both were above what analysts expected.

The company reported second-quarter results that also beat expectations. US sales rose 23% to $1.57bn, and net income was about $1.06bn. After the update, Palantir shares rose more than 12% in after-hours trading.

Chief executive Alex Karp said a key driver is “AI sovereignty.” That means companies and governments want their data kept inside their own country, instead of being processed or stored elsewhere (like keeping important paperwork in your own locked office, not in a shared building across town).

Palantir is increasingly dependent on its home market. International customers made up about 19% of revenue in the quarter, down from 26% in 2025, according to the report.

What to watch

Palantir’s biggest deal remains a $10bn agreement with the Pentagon, and the company’s close ties to US defense work can affect how other countries view it. Watch whether more foreign governments move to local alternatives, even as US demand continues to grow.

Source: Financial Times