Palantir CEO Alex Karp wrote eleven words in his Q2 2026 investor letter that changed the trajectory of his company's stock: "Our entire business nearly doubled in the span of 12 months."
He then went on the earnings call and told analysts to "forget consensus" and that to his knowledge "no business at our scale has even grown half this much." He called the quarter "otherworldly." His Chief Revenue Officer called it "entirely unsurprising."
The market disagreed with that characterization, pleasantly. Palantir shares jumped 15 percent in after-hours trading on August 3, then surged another 29.5 percent the following day to close at $162.66.
The stock, which had been down 29 percent for the year as investors feared AI agents were going to replace the enterprise software Palantir sells, is now up approximately 80 percent from its 2026 lows.
The numbers justify the reaction. Revenue hit $1.935 billion, up 93 percent year over year. US commercial revenue surged 149 percent.
US government revenue jumped 90 percent. GAAP net income was $1.06 billion, a 55 percent margin.
Karp raised full-year guidance to $8.15 billion, the largest guidance raise in company history. US commercial revenue has grown 380 percent since 2024 on a compounding basis.
The 11-word bombshell answered the biggest question hanging over the software industry in 2026. At least for one quarter.