Palantir, a leading artificial intelligence software provider, topped Wall Street’s estimates and raised its full-year guidance due to the growing demand for its services. The company reported $1 billion in revenue for the first time, representing a 48% increase from the previous quarter.
President Donald Trump’s focus on cutting government costs has contributed to Palantir’s growth, with U.S. government revenues jumping 53% year-over-year to $426 million. This is driven by the company’s contract agreements with various government agencies.
In an interview, CEO Alex Karp attributed the company’s success to the “crazy, efficient revolution” of AI and its goal to achieve a 10x revenue growth while reducing headcount. Palantir now expects full-year revenues between $4.142 billion and $4.150 billion, up from prior guidance.
The company has seen significant deals worth at least $5 million and over $10 million during the quarter, with total contract value growing 140% year-over-year to $2.27 billion. Net income rose 144% to about $326.7 million, or 13 cents per share.
Palantir’s market value has accelerated past $379 billion, making it one of the top 20 most valuable U.S companies. Its shares have more than doubled this year and now trade at a significant premium due to investors’ confidence in its AI tools and government contract agreements.
Source: https://www.cnbc.com/2025/08/04/palantir-pltr-q2-earnings-2025.html