Palantir Tops $1 Billion in Quarterly Revenue for First Time, Raises Full‑Year Outlook
Palantir Technologies beat Wall Street expectations Monday, reporting more than $1 billion in quarterly revenue for the first time and raising its full‑year guidance. Shares jumped 3% in after‑hours trading.
Earnings vs. Expectations
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EPS (adjusted): $0.16 vs. $0.14 expected
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Revenue: $1.00 billion vs. $940 million expected
Revenue grew 48% year‑over‑year, beating analyst forecasts that had predicted the milestone would not be reached until late 2025.
“We’re planning to grow our revenue while decreasing our number of people,” CEO Alex Karp told CNBC. “The goal is to get 10x revenue with 3,600 people. We have 4,100 now.”
Karp did not clarify whether that target would require layoffs.
Guidance Raised
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Full‑Year Revenue: Now expected at $4.142B–$4.150B (up from $3.89B–$3.90B).
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Q3 Revenue Forecast: $1.083B–$1.087B vs. $983M expected.
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Operating income and free cash flow guidance also increased.
Revenue Breakdown
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U.S. Revenue: $733M, up 68% YoY.
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U.S. Commercial Revenue: $306M, nearly double YoY.
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U.S. Government Revenue: $426M, up 53% YoY.
Palantir attributed growth partly to President Donald Trump’s government efficiency campaign, which spurred contract wins amid agency cost‑cutting.
Major Contracts & Deal Flow
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Closed 66 deals worth $5M+ each.
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Closed 42 deals worth $10M+ each.
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Total contract value surged 140% to $2.27B.
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Secured a $10B U.S. Army software and data contract last week.
Financial Performance
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Net Income: $326.7M ($0.13 per share) vs. $134.1M ($0.06) a year ago — up 144%.
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Market cap now exceeds $379B, surpassing Salesforce, IBM, and Cisco, placing Palantir in the top 10 U.S. tech companies by value.
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Shares have more than doubled this year on optimism around AI adoption and government contracts.
“This ascent reflects the remarkable convergence of language models, the chips to power them, and our software infrastructure,” Karp wrote to shareholders.
Valuation Concerns
Palantir trades at 276x forward earnings — the highest among top‑20 U.S. companies except Tesla (177x). Analysts caution that while growth is strong, the valuation leaves little room for missteps
Palantir Surpasses $1 Billion Quarterly Revenue for First Time, Raises Full‑Year Forecast as AI Demand Soars
Palantir Technologies has crossed a major financial milestone, reporting more than $1 billion in quarterly revenue for the first time, fueled by surging demand for its artificial intelligence platforms and continued growth in U.S. government and commercial contracts.
The Denver‑based software analytics company comfortably beat Wall Street expectations, sending shares up 3% in after‑hours trading.
Q2 Performance: A Record‑Setting Quarter
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Adjusted EPS: $0.16 vs. $0.14 expected
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Revenue: $1.00 billion vs. $940 million expected
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Revenue Growth: 48% YoY
Analysts had not expected Palantir to reach the $1 billion revenue mark until at least Q4 2025, underscoring how quickly the company’s AI‑driven business is scaling.
“We’re planning to grow our revenue while decreasing our number of people,” CEO Alex Karp told CNBC. “The goal is to get 10x revenue and have 3,600 people. We have now 4,100.”
While Karp did not commit to layoffs, the comment signals an aggressive focus on efficiency and automation.
Guidance Boost Reflects Strong Momentum
Palantir lifted both near‑term and full‑year projections:
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Full‑Year Revenue: $4.142B–$4.150B (previously $3.89B–$3.90B)
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Q3 Revenue: $1.083B–$1.087B vs. $983M consensus
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Increased guidance for operating income and free cash flow
This is the second time in three quarters the company has significantly raised forecasts, suggesting confidence that demand for AI‑powered analytics will remain robust into 2025.
Government Contracts Drive Core Growth
Palantir’s business remains deeply intertwined with U.S. federal and defense work:
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U.S. Government Revenue: $426M, up 53% YoY
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Benefiting from President Donald Trump’s government efficiency initiative, which included agency layoffs and contract streamlining.
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Last week’s $10B U.S. Army contract cements Palantir as a key defense AI partner.
Commercial Segment Gains Traction
While government work is still the backbone, commercial adoption is accelerating:
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U.S. Commercial Revenue: $306M, nearly doubling YoY
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Total U.S. Revenue: $733M, up 68% YoY
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AI‑driven tools are being deployed across finance, energy, healthcare, and manufacturing.
Major Deals and Contract Value Surge
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Closed 66 deals worth $5M+ each
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Closed 42 deals worth $10M+ each
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Total contract value soared 140% YoY to $2.27B
The breadth of deal flow suggests that Palantir is moving beyond its image as a defense‑first contractor into a broader enterprise AI solutions provider.
Profitability Strengthens
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Net Income: $326.7M ($0.13/share) vs. $134.1M ($0.06) last year — up 144%
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Operating leverage improving as software scales faster than headcount
Market Valuation and Investor Sentiment
Palantir’s market cap has surged beyond $379B, pushing it into the top 10 U.S. tech companies by valuation — ahead of Salesforce, IBM, and Cisco. Shares have more than doubled this year as investors bet heavily on AI adoption.
However, valuation remains stretched:
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P/E (forward): 276x
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Only Tesla, at 177x, has a comparable multiple among top‑20 U.S. companies
That premium means investors are paying for near‑flawless execution.
Strategic Outlook
Palantir’s long‑term goal — as outlined by Karp — is to multiply revenue tenfold while cutting headcount. This vision relies on scaling AI models, expanding beyond defense, and embedding Palantir’s platforms deeply into commercial supply chains and government infrastructure.
With a rapidly expanding pipeline, a growing commercial footprint, and entrenched government contracts, the company’s next challenge may be proving it can sustain high growth without sacrificing margins — all while justifying one of the most expensive valuations in the U.S. stock market.
“This ascent is the result of the convergence of advanced language models, the computing power to run them, and the software infrastructure we’ve built,” Karp told shareholders.
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