Palantir Stock Soars as Company Posts First-Ever Billion-Dollar Quarter and Raises 2025 Forecast

Palantir Technologies (NYSE: PLTR) delivered a historic earnings beat in its second-quarter results, reporting its first-ever billion-dollar revenue quarter, sending the stock surging over 4% in after-hours trading on Monday. The defense tech and AI powerhouse surpassed analyst expectations across all key metrics, signaling a robust acceleration in business growth that CEO Alex Karp called “nearly without precedent.”

For Q2 2025, Palantir reported earnings per share (EPS) of $0.16, topping Wall Street’s consensus of $0.14 and marking a staggering 77% increase year-over-year. Revenue surged to $1.004 billion, up 48% from the same quarter in 2024, and beating analyst expectations of $939.25 million. This milestone marks Palantir’s debut into the billion-dollar quarterly club — a threshold Karp described as “a reflection of AI’s transformational impact on the real world.”

The standout drivers were Palantir’s U.S. Commercial and U.S. Government sectors. U.S. Commercial revenue jumped 93% year-over-year to $306 million, while U.S. Government revenue climbed 53% to $426 million. Both figures outpaced analyst forecasts, which anticipated $273 million and $391 million, respectively. International commercial growth, previously a point of concern, was not addressed in detail but Karp emphasized a refocus on core domestic growth.

Adding to the market enthusiasm, Palantir raised its 2025 full-year revenue guidance to a range of $4.14–$4.15 billion, well above Wall Street’s estimate of $3.91 billion. The company also announced that it closed $2.27 billion in total contract value during the quarter — a 140% increase from Q2 2024.

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 Alex Karp attributed the exponential growth to Palantir’s aggressive integration of AI language models and advanced computing infrastructure into its suite of software platforms. In a letter to shareholders, he wrote: “It has been a steep and upward climb — an ascent driven by the remarkable convergence of large language models, cutting-edge chips, and our software’s real-world applications.”

Palantir reports Q2 2025 U.S. comm revenue growth of 93% Y/Y and revenue growth of 48% Y/Y.

We are now guiding to Q3 2025 revenue of $1.083-$1.087B, representing our highest ever sequential quarterly growth rate guide and 50% Y/Y.

And we are also raising our FY 2025 revenue… pic.twitter.com/a7JnbQC2ee

— Palantir (@PalantirTech) August 4, 2025

He continued, “For a startup, even one a thousandth of our size, this growth rate would be stunning. For a company of Palantir’s scale, it is, we believe, nearly without precedent.”

This bullish quarter comes after a rocky Q1 where Palantir stock dipped 12% amid concerns over international sales and valuation pressures. Monday’s results, however, appear to have put those worries to rest, with investors now rallying behind the company’s AI-driven momentum.

Palantir‘s Alex Karp concluded the earnings call by saying, “This was a phenomenal quarter. We are guiding to the highest sequential quarterly revenue growth in Palantir’s history. We see no reason to pause or relent.”

As Palantir cements itself as a pivotal player in the AI, defense tech, and enterprise software sectors, Wall Street analysts are likely to revisit their long-term projections, while investors remain laser-focused on the company’s execution in the upcoming quarters.