TLDR
- Palantir (PLTR) reported $1 billion in quarterly revenue, beating estimates by $60 million with 48% year-over-year growth
- Operating income surged 83% to $464 million while free cash flow more than tripled to $569 million
- Bank of America raised its price target from $180 to $215, projecting commercial sales could exceed $10 billion by 2030
- The company’s AI Platform and “ontology framework” are driving sticky customer relationships across government and commercial sectors
- Stock trades at nearly 240 times expected earnings, creating high expectations for continued strong performance
Palantir Technologies delivered another strong quarter that has analysts talking about the data analytics company’s future potential. The results show a business hitting its stride in the artificial intelligence revolution.
The company reported second-quarter revenue of $1 billion. This beat analyst estimates of $940 million by a comfortable margin. Revenue jumped 48% compared to the same period last year.
Operating income told an even better story. The metric surged 83% to $464 million from the previous year. Free cash flow performance was particularly strong, more than tripling to $569 million.
The company ended the quarter with $5.8 billion in net cash on its balance sheet. After the earnings report, PLTR shares gained 4.6% in after-hours trading.
Revenue Guidance Gets Another Boost
Management raised expectations for the coming periods. For the next quarter, Palantir expects revenue of $1.1 billion. Operating income should reach around $495 million.
The full-year outlook also got an upgrade. Palantir now projects $4.1 to $4.2 billion in revenue for 2025. This represents an increase from the previous guidance of $3.9 billion.
Senior equity analyst Matt Britzman from Hargreaves Lansdown said the growth shows no signs of slowing down. The momentum appears to be building across multiple business segments.
Palantir’s software helps organizations analyze massive datasets and find hidden connections. The Gotham platform serves military and law enforcement needs. Foundry targets healthcare, finance, and other commercial industries.
The company’s “ontology framework” gives it a competitive edge. This technology connects fragmented data sources and makes them usable in real time. The AI Platform then integrates large language models into both Gotham and Foundry.
Once customers adopt Palantir’s systems, switching becomes very difficult. The data insights become too valuable to give up easily. This creates sticky, recurring revenue streams that benefit the company long-term.
Commercial Growth Takes Center Stage
Government contracts remain Palantir’s foundation. However, analysts are watching commercial growth closely. This sector offers the larger addressable market as enterprises rush to adopt AI solutions.
The United States has become Palantir’s fastest-growing market. Both government and commercial segments contributed to the latest revenue surge. If commercial expansion continues at this pace, it could eventually overtake government business.
Bank of America recently revised its outlook on Palantir stock. The investment bank raised its price target from $180 to $215. This change reflects stronger growth projections for future years.
The bank expects commercial sales could exceed $10 billion by 2030. Revenue growth rates of 41% in 2026 and 39% in 2027 support this optimistic view. These projections assume continued success with AI-driven solutions.
Palantir’s AI forward-deployed engineers represent a key growth driver. These solutions understand each customer’s specific business needs. They then build custom AI applications tailored to those requirements.
Boeing recently joined Palantir’s growing customer list. The aerospace giant will use Foundry for defense projects. This adds another major name to Palantir’s commercial portfolio.
The average spending by Palantir’s top 20 clients reached $75 million over the past 12 months. This represents a 30% increase from the previous year. Customer penetration continues to deepen across existing accounts.
The company’s U.S. commercial business grew 93% year-over-year in the latest quarter. U.S. government business expanded 53% during the same period. Both segments show strong momentum heading into future quarters.
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