Mizuho Financial Group

Palantir Soars on Surging AI-Sovereignty Revenue

On Aug. 4, 2026 Palantir reported blockbuster Q2 results, with revenue rising 93% year‑over‑year to $1.94 billion and net income increasing roughly 125%. The quarter beat analyst consensus (~$1.8B) and was driven by the U.S., where revenue more than doubled to $1.57 billion — commercial revenue jumped 149% to $764 million while government revenue grew 90% to $809 million. Management and CEO Alex Karp credited strong demand for AI‑sovereignty and data‑privacy offerings such as AIP and AIP Evolve, positioning Palantir as a counterweight to frontier AI labs. The company raised full‑year revenue guidance to $8.15B–$8.158B and expects commercial revenue above $3.424B. Wall Street firms including Deutsche Bank, UBS, Citi and BofA raised price targets or ratings, and shares rose about 14–16% in extended trading.

Amazon Q2 Earnings Focus on Cloud and Capex

Amazon is scheduled to report second-quarter 2026 results after the bell on July 30, with investors focused on cloud growth and capital expenditures. Street estimates compiled by LSEG expect $1.82 in EPS and $196.47 billion in revenue, with AWS revenue of about $40.54 billion and advertising revenue of $19.43 billion. Amazon reiterated February guidance for roughly $200 billion in 2026 capex, while some analysts (including Morgan Stanley) expect that figure to rise amid rising AI-related infrastructure demand. The company reported $44.2 billion in capex in Q1 and Q2 capex is expected near $49.3 billion per FactSet data. Amazon continues cloud and chip partnerships with AI providers including OpenAI, Anthropic and Meta.

Bond Market Worries Grow Over AI Capex

Fixed-income investors are showing rising concern about large AI-related capital expenditures by major tech companies. Yields and credit spreads widened after Alphabet raised its capex forecast, with Google, Amazon and Meta seeing increased borrowing costs. Oracle’s 5-year CDS is trading near multi-year highs and is being used as a proxy for market fears about AI-related debt. Analysts and banks (including Mizuho and Barclays) warn that hyperscalers may spend more on capex than they generate in free cash flow, while energy and power costs are pushing up data-center expenses. The move could affect financing terms for large projects such as Meta’s planned $12 billion Texas data center.