Palantir Technologies' (PLTR) artificial intelligence strategy is driving its improving financial results, as evidenced by its Q2 beat, BofA Securities said in a Tuesday note.

The company reported Q2 adjusted earnings of $0.41 per diluted share and revenue of $1.94 billion, up from $1.00 billion a year earlier.

Palantir also raised its 2026 revenue outlook to between $8.15 billion and $8.16 billion, from $7.65 billion to $7.66 billion previously.

Palantir's AI strategy focuses on partnerships and customers' results, boosting its US commercial business, the brokerage said.

BofA Securities further noted the company's US commercial customer count rose 35% year over year to 653, while trailing-12-month revenue per US commercial customer increased 76% to $3.5 million in the second quarter.

The company also saw increased business with the US government through its sovereign AI offerings, the brokerage added.

BofA Securities raised its 2026 sales forecast for the company to $8.42 billion from $7.85 billion, citing growth in its commercial and government segments.

BofA Securities reiterated its buy rating and $255 price target on Palantir Technologies.

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