Palantir Technologies raised its full-year guidance on Monday, driven by robust demand in the US market. CEO Alex Karp stated that major enterprises are choosing the company's software to avoid handing over their data to leading AI development firms.

The Florida-based technology company said it now expects full-year revenue of at least $8.15 billion, with US commercial revenue reaching $3.4 billion, both figures exceeding analyst estimates. Palantir also reported better-than-expected second-quarter results, with US sales climbing 23% to $1.57 billion and net profit of $1.06 billion for the period.

What is driving the shift?

Karp told investors that a wave of AI sovereignty is creating growth opportunities for Palantir. Governments and businesses are seeking to maintain control over their own data, avoiding interference from external forces such as foreign governments. He noted that a small number of AI labs currently train their models on customer data, concentrating the benefits of AI development among these institutions, which in turn is fueling demand for self-sufficiency.

"The transformative wave of independence and AI sovereignty is fully underway," Karp wrote in a letter to shareholders. "Our partners' demands are clear: they want control over their data."

The raised guidance pushed Palantir's shares up more than 12% in after-hours trading. This comes after investors had been reducing their holdings amid concerns that AI labs like OpenAI and Anthropic could disrupt its business. Before the earnings release, the stock had fallen 25% year-to-date.

During the earnings call, Karp criticized some AI labs for exaggerating their technological disruption capabilities. He warned that if enterprise clients open their data to these companies, the labs would use that data to develop products that could eventually compete against the clients themselves. Karp also took aim at what he called a "small group" trying to "control clients" and define the ethical boundaries of AI usage, an apparent reference to Anthropic.

Anthropic CEO Dario Amodei is one of the industry's leading voices warning that increasingly capable AI models could replace white-collar workers. Market concerns that his company's products could replace software engineers, lawyers, and other professionals have roiled markets this year. Amodei has also argued for restricting AI applications in defense, putting his company in a prolonged legal dispute with the US Department of Defense.

Palantir's business has become increasingly concentrated in the US, with its reliance on domestic orders growing. In the latest quarter, revenue from international clients accounted for only about 19% of total revenue, down from 26% in 2025. The company has recently signed several commercial agreements, including a deal in June with Kirkland & Ellis to deliver an AI system capable of drafting documents, tracking contracts, and managing compliance. However, these commercial orders are dwarfed by the $10 billion contract signed last year with the US Department of Defense, which will supply various intelligent tools to the military over the next decade.