Palantir shares surged nearly 13% in after hours trading on Monday after the company reported second quarter revenue growth of 93% and raised its full year outlook as demand for its artificial intelligence software accelerated.

Revenue reached $1.94 billion during the quarter ended June 30, up 93% from a year earlier and 19% from the previous quarter.

US revenue climbed 115% year over year to $1.57 billion, accounting for more than 81% of total sales.

US commercial revenue increased 149% year over year and 28% from the previous quarter to $764 million. US government revenue rose 90% year over year and 18% quarter over quarter to $809 million.

Palantir CEO Alex Karp attributed the results to rising demand for sovereign artificial intelligence systems that allow companies and governments to retain control over their data, operations and decision making.

The company closed 220 deals valued at $1 million or more during the quarter. This included 98 agreements worth at least $5 million and 73 agreements worth at least $10 million.

Total contract value reached $3.37 billion, up 49% from a year earlier. US commercial contract value rose 153% to a record $2.13 billion, while remaining US commercial deal value climbed 124% to $6.24 billion.

Palantir reported $912 million in GAAP operating income, representing a margin of 47%. Adjusted operating income reached $1.19 billion, with a margin of 62%.

GAAP net income attributable to common shareholders totaled $1.06 billion, representing a margin of 55%. Both GAAP and adjusted diluted earnings per share came in at $0.41.

Cash generated from operations reached $1.22 billion, while adjusted free cash flow also totaled approximately $1.22 billion. Both measures represented margins of about 63%.

The combination of 93% revenue growth and a 62% adjusted operating margin produced a Rule of 40 score of 155%. The metric combines a company’s revenue growth rate with its adjusted operating margin.

Palantir ended the quarter with $9.2 billion in cash, cash equivalents and short term US Treasury securities.

For the third quarter, the company expects revenue of between $2.16 billion and $2.164 billion. Adjusted operating income is projected to range from $1.292 billion to $1.296 billion.

Palantir raised its full year revenue guidance to between $8.15 billion and $8.158 billion. It now expects US commercial revenue to exceed $3.424 billion, representing growth of at least 134%.

The company also increased its full year adjusted operating income forecast to between $4.889 billion and $4.897 billion. Adjusted free cash flow is expected to reach between $4.5 billion and $4.7 billion.

Palantir maintained its expectation of generating positive GAAP operating income and net income during every quarter of 2026.