Palantir Shatters Revenue Records, CEO Sees 10x Growth in US Commercial Revenue by 2030

Palantir reported Q1 revenue of $1B, up 93% YoY, with its US commercial unit seeing 93% revenue growth and government revenue up 53% YoY. The company's adjusted operating income and free cash flow were also impressive, and revenue guidance was raised to $4.14B-$4.15B for FY25. CEO Alex Karp expressed confidence in the company's growth, predicting US commercial revenue will 10x in the next five years.

Palantir Technologies (PLTR) reported its Q2 fiscal year 2025 (FY25) revenue of $1.004 billion, marking its first billion-dollar quarter. This represents a 48% year-over-year (YoY) increase compared to analyst estimates of $939 million [1]. The company's performance was driven by robust growth in both its U.S. commercial and government segments, with commercial revenue up 20% sequentially and nearly doubling YoY, while government revenue rose 53% YoY [1].

Palantir's adjusted earnings per share (EPS) surged to $0.16 per share, a 77% YoY increase over $0.14 per share, and its GAAP net income jumped to $327 million, reflecting a 144% YoY increase [1]. The company's adjusted operating margin reached 46%, up 900 basis points from the previous year, and its free cash flow surged to $569 million [1].

The company's Rule of 40 score, a popular SaaS metric combining growth and profitability, reached 94%, indicating a healthy and growing business [1]. This metric, which sums the company's growth rate and profit margin, was up by 30% points from the previous year.

Palantir's U.S. commercial unit saw significant growth, with revenue of $306 million, up 93% YoY, driven by AI contracts with firms such as GE Aerospace and Citibank [1]. The government segment also performed well, with revenue of $426 million, up 53% YoY, driven by major contracts like a $10 billion Army AI deal [1].

CEO Alex Karp expressed confidence in the company's growth trajectory, predicting that U.S. commercial revenue could grow 10x in the next five years [1]. Palantir has raised its full-year guidance for FY25, expecting revenue to reach $4.142 billion to $4.150 billion, up from its previous guidance of $3.890 billion to $3.902 billion [1].

The stock price reacted positively to the earnings report, with PLTR stock surging more than 4% during regular trading and adding another 4.7% after hours [1]. The stock has been a top performer in the S&P 500 in 2025, with its market cap increasing by more than 100% amid the AI rally [1].

Investors should watch for the sustainability of Palantir's growth, particularly in the commercial segment, as well as potential valuation pressure and government spending risks [1]. If Palantir can maintain its current momentum, it could become a significant player in the AI era.

References:
[1] https://www.indmoney.com/blog/us-stocks/pltr-hits-1-b-quarterly-revenue-for-the-1st-time