Tech giant Palantir posts ‘otherworldly’ growth despite criticism over Gaza | Technology News
Palantir Technologies Posts Record Revenue Amid Controversy
Palantir Technologies, a leading artificial intelligence and data analytics company based in the United States, reported a remarkable 93% increase in revenue during the second quarter of 2026, prompting a nearly 14% rise in its stock during after-hours trading. The company attributed this growth to robust demand from both commercial clients and government agencies, despite ongoing criticism regarding its connections to the U.S. and Israeli governments and its expanding role in military technology.
The company’s revenue for the quarter amounted to $1.94 billion, up from the previous year, and it raised its annual revenue forecast to a range between $8.15 billion and $8.158 billion, an increase from its earlier estimate of $7.65 billion to $7.662 billion.
“This quarter was otherworldly,” Chief Executive Alex Karp stated, noting that U.S. commercial revenue surged by 149% year-over-year. “Demand for AI sovereignty has now been unleashed.”
In a letter to shareholders, Karp emphasized the unprecedented growth the company is experiencing.
Palantir has secured multiple multibillion-dollar contracts with U.S. government entities, including the Army, with its revenue from U.S. government business rising 90% to $809 million compared to last year. However, the company has faced mounting opposition over its involvement in issues such as immigration enforcement under the Trump administration.
Founded in 2003 by technology entrepreneurs including Karp and billionaire Peter Thiel, Palantir established its first office in Israel in 2015 and has since expanded its collaboration with the Israeli military. Following a “strategic partnership” with Israel in January 2024, Palantir significantly increased its support for military operations in Gaza and the West Bank.
Reports indicate that Palantir has recruited former operatives from Unit 8200, Israel’s elite cyberintelligence division. According to Open Intel, a platform that tracks corporate involvement in military conflicts, Palantir’s software is used to aggregate intercepted communications, satellite imagery, and other data to assist in military targeting.
In statements earlier this year, Palantir UK reaffirmed its support for Israel. The company has also secured major contracts with the UK government, including a $323 million contract awarded by the Ministry of Defence in January and a $444 million NHS contract awarded in November 2023, which raised concerns over data privacy and transparency.
Furthermore, Palantir has been scrutinized for its vision of the future of AI. In the book The Technological Republic, co-authored by Karp and Nicholas W. Zamiska, the authors argue for the obligation of tech companies to develop advanced military AI capabilities, a stance that has drawn criticism for resembling “techno-fascism.”
Al Jazeera has reached out to Palantir for comment on these matters.
