Palantir's stock jumped double digits after the company blew past Wall Street's expectations on both revenue and profit, then raised its full-year guidance by the largest margin in its history as a public company.

The data analytics and AI software firm reported adjusted earnings of 41 cents per share on revenue of $1.94 billion for the second quarter, well ahead of analyst forecasts of 34 cents per share and $1.81 billion. Revenue rose 93% from the same quarter a year earlier. The bigger surprise for investors was in Palantir's commercial business inside the United States, where revenue jumped 149% year over year to $764 million, a segment that has now grown 380% on a compounded basis since 2024.

Management didn't just beat the quarter, they raised the bar for the rest of the year. Palantir lifted its full-year revenue guidance to a range of $8.15 billion to $8.16 billion, up from its prior forecast of $7.65 billion to $7.66 billion, implying 82% growth for the full year. The company also said it now expects U.S. commercial revenue alone to come in above $3.42 billion for 2026, up from an earlier estimate of $3.22 billion.

Shares closed the regular session at $125.65 and climbed as much as 11.36% in after-hours trading to around $139.92 immediately following the report. The rally squeezed short sellers who had bet against the stock, erasing an estimated $3 billion in unrealized short positions in a single trading session.

Palantir has built its recent growth around software that lets corporate and government clients deploy AI models directly against their own data, a pitch the company has leaned on heavily as it moves further into commercial contracts beyond its original base of defense and intelligence customers. The scale of this week's guidance increase suggests that pitch is landing with a wider set of paying customers than it was a year ago.