Palantir Technologies (PLTR) delivered a blowout second quarter, sending its stock up more than 7% in early trading Tuesday after reporting its first-ever billion-dollar quarter and raising its full-year revenue guidance. The results marked a significant milestone for the data analytics and AI-focused company, driven by robust growth across both its commercial and government segments.
“The growth rate of our business has accelerated radically,” said CEO Alex Karp. “Yet we see no reason to pause, to relent, here.”
Palantir reported earnings per share of $0.16, topping analyst estimates of $0.14 and jumping 77% from the year-ago period. Revenue came in at $1.004 billion, its first quarter exceeding the billion-dollar threshold, and a 48% increase year over year. Analysts had expected $939.25 million.
Commercial strength was particularly notable in the U.S., where revenue rose 93% to $306 million. U.S. government revenue also impressed, climbing 53% to $426 million. Both segments handily beat expectations. The company also closed $2.27 billion in total contract value during the quarter, a 140% increase over the same period last year.
In a letter to shareholders, Karp credited Palantir’s accelerating growth to its deep integration of artificial intelligence technologies:
“It has been a steep and upward climb — an ascent that is a reflection of the remarkable confluence of the arrival of language models, the chips necessary to power them, and our software infrastructure,” he wrote, “one that allows organizations to tether the power of artificial intelligence to objects and relationships in the real world.”
“For a startup, even one only a thousandth of our size, this growth rate would be striking, the talk of the town,” Karp added. “For a business of our scale, however, it is, we continue to believe, nearly without precedent or comparison.”
Karp emphasized that the company is not slowing down. “This was a phenomenal quarter … We are guiding to the highest sequential quarterly revenue growth in our company’s history,” he said.
Palantir also raised its full-year 2025 revenue guidance to a range of $4.14 to $4.15 billion, far ahead of the $3.91 billion forecast by Wall Street. The company’s future pipeline also got a boost with a major long-term contract: last week, it announced a new U.S. Army deal worth up to $10 billion over the next decade, combining several government contracts into a single agreement.
Wedbush analyst Dan Ives called the Army contract “one of the largest ever DOD [Department of Defense] software contracts in US history,” and reaffirmed his bullish stance:
“Palantir remains one of our top tech names to own in 2025 and this deal represents another opportunity for PLTR to capitalize on while continuing to generate unprecedented traction for its entire portfolio across the federal and commercial landscapes.”
Investors, however, remain divided. While the stock is up more than 110% so far this year — compared to a 7.4% gain for the S&P 500 — concerns linger about valuation. PLTR currently trades at 24 times the S&P 500’s historical market multiple.
“We cannot rationalize why Palantir is the most expensive name in our software coverage,” RBC Capital Markets analyst Rishi Jaluria wrote ahead of earnings. “Absent a substantial beat-and-raise quarter elevating the [near-term] growth trajectory, valuation seems unsustainable.”
With this quarter, Palantir may have delivered just that.
Pump Radar
Stock Alerts