Palantir Technologies has raised its annual revenue forecast for the second time in 2023, reflecting strong demand for its software services fueled by the generative AI boom.

In its second quarter financial results for 2024, Palantir reported a remarkable 27% year-over-year revenue increase, driven primarily by its artificial intelligence platform.

The company's net income for the quarter reached $134 million, with earnings per share hitting a record high of 6 cents.

Following the announcement, Palantir's shares surged over 15% in extended trading, showcasing investor confidence.

U.S. commercial revenue saw a significant 55% year-over-year increase, while U.S. government revenue rose by 24% during the same period.

CEO Alex Karp attributed the strong performance to 'unbridled demand' for the company's software products.

Total revenue for the quarter was reported at $678.13 million, surpassing the expected $652.42 million.

Palantir raised its full-year revenue guidance to a range of $2.74 billion to $2.75 billion, exceeding the previous estimate of $2.68 billion to $2.69 billion.

This updated guidance is largely due to strong demand for its Artificial Intelligence Platform (AIP).

For the third quarter, Palantir forecasts revenue between $697 million and $701 million, significantly above the analysts' average estimate of $681.4 million.

Karp emphasized the strong demand for effective artificial intelligence systems across both commercial and government sectors.

Palantir's AI platform is designed to assist in testing and debugging code, capitalizing on the growing need for services that facilitate the development of generative AI technology.