Palantir Technologies (PLTR) Stock: Crosses $1 Billion Revenue Milestone in Record Quarter

TLDR

Table of Contents

Palantir (PLTR) hit its first $1 billion revenue quarter, beating expectations with 48% year-over-year growth
Adjusted earnings per share jumped 78% to $0.16, crushing analyst estimates of $0.14
U.S. commercial revenue exploded 93% year-over-year to $306 million on strong AI demand
Company raised 2025 revenue guidance to $4.14-$4.15 billion from previous range of $3.89-$3.90 billion
Stock gained over 4% in after-hours trading despite concerns about sky-high valuation

Palantir Technologies stock jumped over 4% in after-hours trading Monday after the data analytics company reported its first-ever billion-dollar quarterly revenue. The company posted second-quarter revenue of $1.004 billion, crushing Wall Street expectations of $939.7 million.

This marks a 48% increase from the same quarter last year. CEO Alex Karp called the results “phenomenal” in the earnings release.

The beat wasn’t just on the top line. Adjusted earnings per share hit $0.16, well above analyst estimates of $0.14. This represents a 78% jump from the prior year period.

Palantir Technologies, $PLTR, Q2-25. Results:
📊 Adj. EPS: $0.16 🟢
💰 Revenue: $1.00B 🟢
📈 Net Income: $327M
🔎 U.S. commercial revenue surged to $306M, a 93% jump, driving record growth across all segments. pic.twitter.com/SsT3syDMp4
— EarningsTime (@Earnings_Time) August 4, 2025

“The growth rate of our business has accelerated radically,” Karp said during the earnings call. “Yet we see no reason to pause, to relent, here.”

U.S. commercial revenue stood out as a particular bright spot. This segment grew 93% year-over-year to $306 million, far exceeding analyst projections of $273 million.

The company attributes much of this growth to surging demand for its AI-powered software platforms. Businesses are increasingly turning to Palantir’s tools to harness artificial intelligence capabilities.

U.S. government revenue also performed well, climbing 53% to $426 million. This beat analyst expectations of $391 million for the quarter.

Strong Contract Metrics Paint Bullish Picture

Beyond the headline numbers, Palantir’s contract metrics tell a compelling growth story. The company closed $2.27 billion in total contract value during the quarter, up 140% year-over-year.

Large deals continue to drive momentum. Palantir signed 157 deals worth over $1 million, including 66 deals of at least $5 million and 42 deals exceeding $10 million.

U.S. commercial customer count surged 64% to 485 customers. U.S. commercial total contract value deals soared 222% to $843 million.

The company’s remaining deal value in the U.S. commercial segment rocketed 145% to $2.79 billion. This metric indicates strong future revenue visibility.

Cash generation also impressed investors. Operating cash flow hit $539 million, up 274% from the prior year. Adjusted free cash flow reached $569 million, climbing 282% year-over-year.

Guidance Raises Across the Board

Management took the opportunity to raise guidance across multiple metrics for 2025. Revenue guidance increased to $4.14-$4.15 billion from the previous range of $3.89-$3.90 billion.

This new guidance implies 45% growth for the full year, up from the previous 36% projection. Wall Street had been modeling $3.9 billion in revenue for 2025.

U.S. commercial revenue guidance also got a boost. The company now expects this segment to exceed $1.302 billion, up from the prior guidance of greater than $1.178 billion.

Third-quarter revenue guidance came in at $1.083-$1.087 billion. This represents 49-50% growth year-over-year, well above Wall Street’s expectation of $981.8 million.

Adjusted operating income guidance for the full year jumped to $1.912-$1.920 billion from $1.711-$1.723 billion previously. Adjusted free cash flow guidance increased to $1.8-$2.0 billion from $1.6-$1.8 billion.

Despite the strong results, some analysts remain cautious about valuation. The stock trades at roughly 278 times forward earnings estimates, well above typical market multiples.

RBC Capital Markets analyst Rishi Jaluria wrote before earnings that Palantir is “the most expensive name in our software coverage.” However, he noted that a substantial beat-and-raise quarter could justify the premium.

Wedbush analyst Dan Ives remains bullish, calling Palantir “one of our top tech names to own in 2025.” He pointed to the company’s recent $10 billion Army contract as another growth catalyst.

Palantir ended the quarter with $6.0 billion in cash and short-term investments, up from $5.4 billion last quarter. The company carries no long-term debt, providing financial flexibility for future investments.

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