Company Overview Palantir topped Wall Street’s estimates in Q2 2025, surpassing $1 billion in quarterly revenue for the first time with revenues growing 48% year-over-year to $1 billion versus $940 million expected, while adjusted EPS came in at 16 cents versus 14 cents expected. Palantir stock has surged 111.22% so far in 2025, bolstered by optimistic forecasts and strategic earnings performance, with shares marking an impressive 1,626.30% surge since its October 2022 IPO. The company now commands a market capitalization of approximately $449 billion and reports Q3 earnings on November 3, 2025.
In early August, Palantir secured a 10-year enterprise agreement with the U.S. Army valued at up to $10 billion, which consolidates 75 existing contracts into a single contract. Most recently, the company also won its first billion-dollar deal outside the US, signing a £750 million AI deal with the UK’s Ministry of Defence. Additionally, the ceiling for the Maven Smart System contract was increased by $795 million to prepare for significant demand from combatant commands for AI-powered software capabilities over the next four years.
Key Technical and Fundamental Drivers
$10 Billion Army Deal → 75 Contracts Consolidated Palantir’s $10 billion U.S. Army enterprise agreement consolidates 75 contracts and represents a landmark deal highlighting the company’s expanding government adoption and transformation into an AI-powered enterprise platform.
U.S. Commercial Explosion → 93% Growth Palantir’s U.S. commercial revenues nearly doubled from a year ago to $306 million, jumping 93%, while total U.S. revenues surged 68% from a year ago to $733 million. Q2 US commercial revenue grew by 93% YoY and 20% sequentially, with revenue accelerating from 71% YoY growth in the previous quarter.
Government Revenue Surge → 53% Jump Palantir’s U.S. government revenues jumped 53% from the year-ago period to $426 million, as the company has seen a boost from President Trump’s government efficiency campaign.
Record Deal Activity → 66 Major Contracts During Q2, Palantir closed 66 deals of at least $5 million and 42 deals totaling at least $10 million, with total contract value growing 140% from last year to $2.27 billion.
Wedbush Bullish → $140 Price Target Wedbush analyst Dan Ives places Palantir at the forefront of top tech stocks with a bold $140 per share target, though analyst price targets range from $40 to $215 reflecting the stock’s volatility.
Market Takeaway CEO Alex Karp stated the company is planning “to grow revenue while decreasing our number of people,” targeting 10x revenue with just 3,600 employees from the current 4,100, calling it “a crazy, efficient revolution”. Net income rose 144% to approximately $326.7 million, or 13 cents per share, from about $134.1 million, or 6 cents per share a year ago, as Palantir’s market value accelerated into the list of top 20 most valuable U.S. companie.
Analysts expect 2025 revenue to grow 45.3% year-over-year to $4.16 billion, with 2026 revenue projected to grow 35% to $5.62 billion and 34.4% growth to $7.55 billion in 2027. The company’s Artificial Intelligence Platform (AIP) enables organizations to securely deploy and manage large language models and AI technologies, with its scalability and flexibility attracting larger commercial engagements and driving expansion beyond traditional government contracting.
While valuation appears stretched at approximately 120x sales, Palantir’s unique government contracts, high growth rate, and sustained profitability justify its premium versus peers, with the company’s deep government moat and strong execution supporting a bullish outlook. The company surpassed a $1 billion quarterly run rate in U.S. commercial business, marking a critical milestone that validates Palantir’s transformation from a government contractor into a commercial AI powerhouse. With Q3 earnings scheduled for November 3rd just days away, the convergence of massive government contracts, explosive commercial growth, and CEO Karp’s vision of 10x revenue scaling positions Palantir as a high-conviction AI infrastructure play for investors willing to embrace premium valuations in exchange for exceptional growth.Retry