Palantir Technologies has raised its annual revenue and profit forecast for the second time this year, highlighting the ongoing surge in demand for its software services driven by the generative AI boom.
Palantir has reported $678 million in revenue in the second quarter of the year, an increase of 27 percent.
In Q2 2024, Palantir generated $159 million in revenue in the U.S. commercial market alone, an increase of 55 percent from the same period the year before. The customer count in the U.S. commercial market grew 83 percent, from 161 in Q2 2023 to 295 in Q2 2024, and now accounts for half of all of customers.
The trailing 12-month revenue in U.S. government business — including defense and intelligence agencies — surpassed $1 billion.
The Denver, Colorado-based data analytics company reported net income of $134 million its largest-ever quarterly profit for the April-to-June period.
Palantir’s AI platform, which is used to test, debug code, and evaluate AI-related scenarios, has allowed the company to capitalize on the increasing demand for services that assist companies in developing generative AI technology.
Palantir now expects annual revenue to be between $2.74 billion and $2.75 billion, up from the previous forecast of $2.68 billion to $2.69 billion.
The company also raised its annual forecast for adjusted income from operations to between $966 million and $974 million, from the earlier expectation of $868 million to $880 million.
Chief Revenue Officer Ryan Taylor told Reuters that Palantir is driving growth by helping companies overcome the significant bottleneck between AI application prototypes and fully deployed products. The company also forecast third-quarter revenue above estimates, underscoring its positive momentum.
