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Palantir Surges As AI Sovereignty Fuels Strong Quarterly Growth

Palantir shares climbed about 20% after the software company reported stronger-than-expected second-quarter results, driven by rising demand for AI platforms that allow organisations to deploy artificial intelligence while keeping sensitive data under their own control.

The company reported quarterly revenue of $1.94 billion, surpassing analysts’ expectations of $1.8 billion. Commercial revenue increased 149% year over year to $764 million, while government revenue rose 90% to $809 million.

Demand For AI Sovereignty

Palantir attributed much of its growth to increasing demand for AI sovereignty, as businesses and public sector organisations seek to adopt artificial intelligence without relying entirely on external model providers.

Its software enables customers to integrate AI into their own systems and data environments while maintaining greater control over security, governance and infrastructure.

Chief Executive Officer Alex Karp said the company is seeing growing interest from organisations looking to build AI capabilities while retaining ownership of their data.

Raising Full-Year Outlook

Following the strong quarter, Palantir increased its full-year guidance, forecasting revenue of between $8.15 billion and $8.16 billion. The company also expects commercial revenue to exceed $3.42 billion this year.

The updated outlook reflects continued momentum across both its enterprise and government businesses as AI adoption accelerates.

A Broader Enterprise Trend

Palantir’s results reflect a wider shift in enterprise AI. As organisations expand the use of generative AI, many are prioritising platforms that allow them to deploy multiple AI models while keeping sensitive information within their own environments rather than sharing it directly with external providers.

The trend is becoming an increasingly important driver of enterprise software spending, particularly among organisations operating in highly regulated industries or managing critical infrastructure.

Paramount Closes $110 Billion Warner Bros. Discovery Deal, Creating Skydance Entertainment Giant

Paramount has completed its $110 billion acquisition of Warner Bros. Discovery, bringing together two of the most powerful names in media under a new combined company, Skydance. The deal, announced Tuesday, creates one of the largest entertainment mergers ever completed and reshapes the competitive landscape across streaming, film, television and cable.

A New Power Center In Global Entertainment

The combined company unites Paramount+ and HBO Max, alongside a broad portfolio of networks that includes CBS, CNN, MTV, TBS, Comedy Central and Food Network. It also gives Skydance control over some of the industry’s most valuable franchises, including The Lord of the Rings, Game of Thrones, the DC Universe and Yellowstone.

For the industry, the scale of the transaction is as significant as the assets themselves. In an era defined by streaming competition and rising content costs, ownership of established intellectual property has become a strategic advantage akin to controlling a premium distribution network in a previous media cycle.

Ellison Expands His Influence

The merger places one of the world’s largest entertainment studios under the control of David Ellison, who only last year completed the combination of Skydance Media and Paramount. With this latest transaction, Ellison is accelerating his rise as one of Hollywood’s most influential executives.

The Ellison family remains Skydance’s largest shareholder, backed by the financial power of Larry Ellison, the Oracle co-founder and David Ellison’s father. That support gives the company considerable flexibility as it integrates two sprawling media businesses and seeks to compete more aggressively across platforms.

Legal Hurdles Cleared Before Closing

The deal’s completion follows settlements with a coalition of U.S. states and a Hollywood writers’ union, removing the principal legal obstacles that had threatened to delay or derail the merger.

Paramount first announced in February that it would pursue Warner Bros. Discovery after a bidding contest with Netflix, which had earlier struck its own agreement to acquire Warner Bros.’ film and television studios and streaming operations, excluding the cable networks. Paramount strengthened its offer by promising shareholders additional cash if the deal failed to close by a set deadline and by agreeing to cover the breakup fee owed to Netflix.

What Skydance Says Comes Next

“Today is a historic day, not just for Skydance but for our entire industry,” Ellison said in a statement. “From the start, our ambition was to bring these two storied studios together and create a stronger competitor, with the talent, resources, and reach to tell great stories in every genre, on every platform, for audiences everywhere. Our focus now turns to the future: building a company that empowers creatives, entertains audiences and rewards shareholders. We couldn’t be more excited to get to work.”

Skydance said the combined company will generate nearly $70 billion in annual revenue. The company’s Class B shares are set to begin trading on the New York Stock Exchange today under the ticker symbol SKYD.

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