Palantir 2025 Q2 Earnings Strong Performance as Net Income Surges 144%

Palantir (PLTR), ranking 23rd by market capitalization, reported its fiscal 2025 Q2 earnings on Aug 5, 2025. The company exceeded expectations with robust revenue and profit growth, and has raised full-year guidance across multiple metrics.

Palantir reported total revenue of $1 billion in Q2 2025, representing a 48.0% increase from $678.13 million in the same period a year ago. The surge was driven by significant growth in both U.S. and commercial operations, with U.S. revenue reaching $733 million, up 68% year-over-year, and U.S. commercial revenue nearly doubling to $306 million. U.S. government revenue also climbed 53% to $426 million, benefiting from heightened demand under President Donald Trump’s government efficiency initiatives.

The company’s net income surged 144% to $328.57 million in 2025 Q2 compared to $135.57 million in 2024 Q2. Earnings per share rose from $0.06 to $0.14, reflecting a 133.3% increase. These results underscore Palantir’s strengthening profitability and operational leverage.

The stock has experienced notable price momentum, with a 0.85% gain on the latest trading day, a 10.90% jump in the past week, and a 28.96% rise month-to-date. A strategy of buying the stock following revenue beats and holding for 30 days delivered an impressive 92.70% return, significantly outperforming the benchmark. The strategy demonstrated strong risk-adjusted returns with a Sharpe ratio of 2.20, a maximum drawdown of 0.00%, and a CAGR of 201.02%, reinforcing the effectiveness of leveraging earnings beats.

Alex C. Karp, Co-Founder and CEO, highlighted a “phenomenal quarter” driven by the impact of AI integration, noting the company’s Rule of 40 score was 94%. He emphasized U.S. business growth of 68% year-over-year and U.S. commercial revenue growth of 93%. Karp expressed confidence in continued momentum, with the company guiding for the highest sequential quarterly revenue growth in its history at 50% year-over-year.

For Q3 2025, Palantir expects revenue of $1.083–$1.087 billion and adjusted income from operations of $493–$497 million. For FY 2025, the company raised revenue guidance to $4.142–$4.150 billion, U.S. commercial revenue guidance to over $1.302 billion (85% growth), adjusted income from operations to $1.912–$1.920 billion, and adjusted free cash flow to $1.8–$2.0 billion. The company also continues to expect GAAP operating and net income in each quarter of 2025.

In recent non-earnings news, Palantir secured a $10 billion software and data contract with the U.S. Army, signaling strong demand for its services. The company’s market capitalization has surged past $379 billion, placing it among the top 10 U.S. tech companies. Shares currently trade at 276 times forward earnings, the highest among top 20 U.S. companies aside from Tesla. Palantir has also closed 66 deals of at least $5 million and 42 deals totaling at least $10 million during the quarter, with total contract value rising 140% year-over-year to $2.27 billion.