Tech giant Palantir posts ‘otherworldly’ growth despite criticism over Gaza

What the report says

Palantir Technologies reported a sharp rise in second-quarter results, with Al Jazeera saying the U.S.-based AI and data analytics company posted what its chief executive called “otherworldly” growth. The company said revenue reached $1.94bn, up 93% from a year earlier, and it lifted its full-year revenue forecast. Shares rose more than 14% in after-hours trading after the announcement.

Al Jazeera reported that the growth was driven by stronger demand from both commercial clients and government agencies. Palantir said U.S. commercial revenue increased 149% year on year, while U.S. government revenue rose 90% to $809m. The company has major contracts with U.S. agencies, including the Army, and it said it expects continued demand for artificial intelligence tools.

The article said the financial results came amid continuing criticism of Palantir’s ties to the U.S. and Israeli governments and its expanding role in military technology. Al Jazeera noted that the company opened its first office in Israel in 2015 and expanded its work with the Israeli military after a partnership announced in January 2024. Critics have also objected to Palantir’s work connected to U.S. immigration enforcement and to public-sector contracts in the U.K., including deals with the Ministry of Defence and the NHS.

More broadly, the coverage reflects a wider debate over how AI companies should be used in warfare and state security. That debate is especially sensitive as the conflict in Gaza continues to draw scrutiny of firms that support military operations.