11:28 AM EDT, 08/06/2024 (MT Newswires) -- Palantir Technologies ( PLTR ) shares were rallying intraday Tuesday after the software maker late Monday reported stronger-than-expected second-quarter results that reflected "unprecedented" demand for its artificial intelligence solutions, Wedbush Securities said.

Palantir's ( PLTR ) adjusted per-share earnings rose to $0.09 during the three months ended June 30 from $0.05 a year earlier. This was ahead of Wall Street's estimate of $0.08. Revenue rose 27% year over year to $678.1 million, exceeding the Capital IQ-polled consensus of $652.4 million.

"Our growth across the commercial and government markets has been driven by an unrelenting wave of demand from customers for artificial intelligence systems that go beyond the merely performative and academic," Chief Executive Alex Karp said in a shareholder letter published on the company's website Monday.

The stock soared 11% in Tuesday's trading session. Wedbush raised its price target on the shares to $38 from $35 while maintaining the outperform rating.

"This was a game changer quarter for the Palantir ( PLTR ) story as the (artificial intelligence platform) monetization piece on US commercial was front and center as a major growth driver," Wedbush analysts, including Daniel Ives, wrote in a Tuesday note.

The number of customers climbed 41% year over year, driven by an 83% jump in the US commercial count. Consolidated commercial revenue increased 33% to $307 million, driven by a 55% surge in the US. Sales from the overall government division increased 23%.

For 2024, Palantir ( PLTR ) expects revenue in the range of $2.74 billion to $2.75 billion, up from its previous guidance of $2.68 billion to $2.69 billion. Wedbush said the Street was looking at $2.70 billion. The company raised its US commercial revenue outlook to more than $672 million. Adjusted income from operations is expected between $966 million and $974 million, compared with prior projections of $868 million to $880 million.

This marked the second time Palantir ( PLTR ) raised its full-year revenue and operating income guidance in 2024 as AIP drives new customer conversions and existing customer expansions in the US, according to the Wedbush analysts.

Palantir ( PLTR ) expects revenue of $697 million to $701 million for the ongoing quarter.

Price: 26.94, Change: +2.85, Percent Change: +11.81