Palantir Technologies is an American company that helps organizations make sense of big data. Founded in 2003 by Peter Thiel, Stephen Cohen, Joe Lonsdale, and Alex Karp, it’s based in Denver, Colorado. Palantir creates software platforms like Palantir Gotham for intelligence and defense, Palantir Foundry for data analysis, Palantir Apollo for continuous delivery, and Palantir AIP for AI solutions.
Originally focused on U.S. federal agencies, Palantir has expanded to work with international governments, local governments, and private companies. Their software helps these organizations integrate and analyze large amounts of data to make decisions quickly.
Palantir plays a crucial role in the AI industry, with its technology being used in various fields like defense, healthcare, and manufacturing. The company has seen strong financial growth and has a positive outlook for the future.
Palantir Fiscal Q2 2025
Palantir Technologies (PLTR) posted strong results for Q2 2025, with U.S. commercial revenue surging 93% year-over-year and total revenue climbing 48%. Both revenue and earnings per share exceeded market expectations, beating forecasts and delivering performance well above consensus.
The company also raised its full-year revenue outlook to 45% growth and expects Q3 revenue to grow 50% year-over-year. Also, guidance for U.S. commercial revenue in FY 2025 was increased to 85%.
Highlights
- U.S. revenue reached $733 million, up 68% year-over-year and 17% quarter-over-quarter
- U.S. commercial revenue totaled $306 million, a 93% increase year-over-year and 20% increase quarter-over-quarter
- U.S. government revenue rose to $426 million, growing 53% year-over-year and 14% quarter-over-quarter
- Total revenue stood at $1.004 billion, marking a 48% year-over-year and 14% quarter-over-quarter increase
- 157 deals were closed worth at least $1 million; 66 deals exceeded $5 million; 42 deals surpassed $10 million
- Customer count increased by 43% year-over-year and 10% quarter-over-quarter
- GAAP income from operations was $269 million, with a 27% margin
- Adjusted income from operations totaled $464 million, delivering a 46% margin
- GAAP net income was $327 million, representing a 33% margin
- GAAP EPS came in at $0.13; adjusted EPS at $0.16
- Cash, cash equivalents, and short-term Treasury holdings totaled $6 billion
Guidance
Palantir expects strong results ahead. For Q3 2025, the company projects revenue between $1.083 and $1.087 billion, with adjusted operating income of up to $497 million.
For the full year, it has raised its forecasts, now targeting revenue over $4.14 billion and U.S. commercial revenue above $1.302 billion, an increase of at least 85% year-over-year.
Adjusted operating income is expected to reach nearly $1.92 billion, with free cash flow between $1.8 and $2 billion. The company also anticipates continued GAAP profitability in every quarter of 2025.
Boards Statements
Alexander C. Karp, Co-Founder and Chief Executive Officer of Palantir Technologies, said Palantir Technologies delivered a standout quarter, marked by strong performance and significant growth. He highlighted the powerful role AI continues to play in driving results. The company reported a Rule of 40 score of 94%, far exceeding expectations. U.S. business revenue rose 68% year-over-year, while U.S. commercial growth surged 93%. Palantir is now projecting its highest sequential quarterly revenue increase ever, representing a 50% rise compared to the same period last year.
Impact on the Stock Market
Palantir Technologies (PLTR) surged 6% in premarket trading following its strong Q2 2025 earnings report, breaking through the $161 resistance level and reaching a new all-time high.
The rally was driven by better-than-expected results, including $1.004 billion in revenue and $0.16 in adjusted EPS, both beating analyst forecasts. The company also raised its full-year guidance, signaling confidence in continued growth fueled by AI demand and major government contracts.
This breakout above a key technical barrier reflects strong bullish momentum, with investors responding positively to Palantir’s accelerating U.S. commercial growth and expanding federal footprint. The stock’s performance positions it among the top gainers in the S&P 500 for the year.
