Palantir Surpasses $1 Billion in Quarterly Revenue, Stock Surges with Elevated 2025 Outlook
Palantir Technologies (NASDAQ: PLTR) has achieved a milestone by reporting its first-ever billion-dollar quarterly revenue, driven by a booming demand for its AI software solutions. The company beat Wall Street estimates in its second-quarter 2025 earnings, posting $1.004 billion in revenue, marking a 48% year-over-year increase.
Palantir’s CEO Alex Karp attributed the robust growth to the company’s integration of advanced language models, powerful chips, and its software infrastructure that links AI capabilities to real-world data. He expressed strong confidence in the continued upward trajectory of the business.
The company’s U.S. commercial revenue surged 93% year over year to $306 million, while U.S. government revenue increased 53% to $426 million during the same period. Palantir closed $2.27 billion in total contract value in the quarter, a 140% increase from the previous year.
In response to the strong earnings, Palantir raised its full-year 2025 revenue guidance to between $4.142 billion and $4.150 billion, significantly above prior guidance of $3.89 billion to $3.90 billion and higher than Wall Street’s estimate of $3.91 billion. The third-quarter revenue range is expected to be $1.083 billion to $1.087 billion, beating analyst expectations.
Shares surged over 5% in after-hours trading following the announcement. Palantir has more than doubled its stock value in 2025, pushing its market cap to over $379 billion, placing it among the top 20 most valuable U.S. companies.
The company’s recent $10 billion deal with the U.S. Army over the next decade, one of the largest Department of Defense software contracts, underscores its growing influence and robust government ties.
Despite its rapid rise, some analysts caution that Palantir’s valuation is high, trading around 276 times forward earnings. Yet, bullish voices highlight its unique position in the AI software space and potential for continued growth.
Alex Karp, CEO of Palantir Technologies, at the Hill and Valley Forum in Washington, DC, 2025 (Photo by Kevin Dietsch/Getty Images)
