Palantir Technologies (PLTR) is well positioned to capture share across both its government and commercial businesses, after a quarter of accelerating demand, record bookings and largest guidance raise in company history, Truist said in a note Tuesday.

The brokerage said the company is seeing significant demand for sovereign AI and views the opportunity as an incremental total addressable market expander.

While the company's shares continue to warrant a premium, Truist believes Palantir as one of the clearest beneficiaries of AI adoption in the public markets, according to the note.

The company reported Q2 revenue of $1.94 billion, compared with consensus estimate of $1.81 billion, while adjusted earnings was $0.41 per share, compared with estimates of $0.34.

The company raised its 2026 revenue outlook to between $8.150 billion and $8.158 billion, which is above the consensus estimate of $7.73 billion.

Truist maintained buy rating on the stock with an unchanged $223 price target.

Price: 162.58, Change: +36.93, Percent Change: +29.39