Palantir Technologies has achieved a milestone that would have seemed outlandish even a year ago, posting its first-ever billion-dollar quarter thanks to a significant boom in artificial intelligence (AI). The software and data analytics giant reported $1 billion in revenue for its most recent quarter, up 48% year over year, with U.S. revenue alone jumping 68% to $733 million.
The company’s “rule of 40” score – a key measure of growth plus profit margin – hit a near-unprecedented 94%, obliterating the metric once again. Palantir’s executives attribute this success to AI, which is being blended into every layer of its business and rapidly automating tasks that once required armies of highly paid coders and IT staff.
CEO Alex Karp was exuberant about the earnings call, stating that “this was a phenomenal quarter” and that AI leverage has had an astonishing impact on his company’s productivity. He warned, however, that America is at risk of losing its lead in government and commercial AI if the U.S. does not double down on its efforts.
Palantir plans to grow revenue while decreasing its workforce, with Karp stating that he wants to engage with unions as re-industrialization will require AI. The company aims to get 10x revenue with a much smaller workforce of 3,600 employees, down from its current 4,100.
Analysts praise Palantir’s success in deploying and operationalizing AI into enterprises, with Bank of America Research reiterating its buy rating. CEO Alex Karp has made a statement, saying “Palantir is clearly benefiting from AI industry momentum across its government and commercial customer bases.”
Source: https://fortune.com/2025/08/05/palantir-second-quarter-earnings-crazy-efficient-revolution-ai-job-cuts-alex-karp