Palantir revenue surges 93% amid criticism over support for Israel’s Gaza war

US artificial intelligence and data analytics company Palantir Technologies reported a 93% year-on-year surge in second-quarter revenue, despite mounting criticism over its support for Israel and the alleged use of its technology in the Gaza war.

Revenue reached $1.94 billion in the three months ended June 30, up from $1 billion a year earlier, the company said Monday.

Net income attributable to common shareholders more than tripled to $1.06 billion, while diluted earnings per share rose to $0.41 from $0.13.

Palantir’s US revenue climbed 115% year-on-year to $1.57 billion. US commercial revenue jumped 149% to $764 million, while government revenue increased 90% to $809 million.

“This quarter was otherworldly,” CEO Alex Karp said, citing accelerating demand for what the company calls “AI sovereignty.”

Palantir signed 220 contracts worth at least $1 million during the quarter, including 73 deals valued at $10 million or more.

Total contract value rose 49% to $3.37 billion, while US commercial contract value surged 153% to a record $2.13 billion.

The company raised its full-year revenue forecast to between $8.15 billion and $8.16 billion, from an earlier projection of $7.65 billion to $7.66 billion.

It expects US commercial revenue to exceed $3.42 billion this year, representing growth of at least 134%.

Palantir shares rose more than 14% in after-hours trading following the results.

Founded in 2003, Palantir develops data-analysis software used by companies, intelligence services and military agencies.

The company announced a strategic partnership with Israel’s Defense Ministry in January 2024 to provide technology for war-related missions.

Open Intel, a platform tracking corporate involvement in what it describes as the genocidal war on Gaza, says Palantir has recruited former members of Unit 8200, Israel’s elite cyberintelligence division.

The group alleges that Palantir’s software combines intercepted communications, satellite imagery and other data to help Israeli forces generate military targeting lists.