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Economic Times
2 days ago
- Business
- Economic Times
Palantir stock skyrockets after crushing first-ever $1 billion quarter — investors rejoice
Palantir Technologies just shook Wall Street with a game-changing Q2 2025 report, becoming one of the hottest AI stocks to watch this year. The company crossed a historic milestone by clocking over $1 billion in quarterly revenue for the first time—driven by surging demand for its artificial intelligence platforms and massive growth in U.S. government and commercial contracts. As the AI race heats up, Palantir is proving it's not just part of the conversation—it's leading it. Palantir stock skyrockets after record-breaking $1 billion Q2 earnings amid soaring AI and defense demand- In a powerful showcase of growth fueled by the AI revolution and expanding defense contracts, Palantir Technologies has just reported its first-ever $1 billion revenue quarter, sending its stock soaring and shaking up the market. The software and data analytics firm, long known for its ties to the U.S. military and intelligence agencies, is now emerging as a key commercial player in the artificial intelligence space—while also delivering blockbuster numbers that are turning heads across Wall Street. The market responded swiftly and enthusiastically to Palantir's Q2 results. Shares surged to an intraday high of $176.17 before settling at $172.03, reflecting investor optimism. Wall Street analysts quickly updated their outlooks: Bank of America raised its price target to $180 raised its price target to Morgan Stanley hiked its estimate from $88 to $155 hiked its estimate from $88 to Deutsche Bank doubled its target from $80 to $160 and upgraded its rating to 'hold' Palantir is now being viewed by many as a 'clear AI winner,' with strong positioning in defense tech, commercial AI, and analytics. Palantir's Q2 2025 earnings stunned analysts and investors alike as the company smashed through the billion-dollar revenue mark for the first time in its history. Reporting revenue of $1.004 billion, Palantir not only beat Wall Street's forecast of $940 million, but also marked a massive 48% year-over-year growth. This milestone cements Palantir as one of the leading players in the booming AI sector, where enterprise demand for smart data analytics platforms is surging across industries. This growth wasn't just isolated to one area—Palantir's revenue streams from both its commercial and government clients saw double-digit surges, driven by an aggressive AI rollout strategy and deepening ties with U.S. federal a result, Palantir stock jumped 7.08%, closing at $172.03, up $11.37 from the previous day. The excitement wasn't just about numbers—it was about what those numbers said: Palantir's growth is real, and it's accelerating. One of the standout trends in Palantir's Q2 performance was the explosive growth in its U.S. commercial revenue, which nearly doubled year-over-year—surging by 93% to reach $306 million. This sharp uptick reflects the growing appetite from private companies for Palantir's AI-powered data platforms like Foundry and Artificial Intelligence Platform (AIP), which are increasingly being adopted to streamline operations, reduce costs, and drive efficiency. On the government side, U.S. federal revenue soared by 53% to approximately $426 million, fueled by deepening contracts with defense and intelligence entities. Together, these U.S. segments accounted for $733 million, or roughly 68% of Palantir's total revenue—a clear sign of the firm's dominance in both public and private AI markets. Palantir isn't just growing revenue—it's closing major contracts at a record pace: The company signed 157 deals worth $1 million or more. This included 66 deals valued at $5 million+, and 42 worth more than $10 million. Total contract value hit $2.27 billion, up a jaw-dropping 140% from last year. The remaining deal value for U.S. commercial alone was $2.79 billion, showing a 145% YoY surge. Palantir also beat expectations on the bottom line. The company reported adjusted earnings per share (EPS) of $0.16, exceeding analysts' consensus of $0.14. This marks the company's sixth consecutive profitable quarter under generally accepted accounting principles (GAAP), proving that its rapid growth is translating into strong financial performance—not just hype. Palantir's adjusted operating margin hit 46%, a healthy indicator of its efficiency in scaling revenue while keeping expenses under control. Its Rule of 40 score—a popular metric among tech investors that combines revenue growth and profit margins—came in at a stellar 94, underscoring Palantir's elite financial standing in the software sector. Palantir's management also raised its outlook for the rest of 2025, signaling confidence that the AI wave has only just begun. The company now expects full-year revenue to fall between $4.14 billion and $4.15 billion, a notable jump from the earlier guidance of $3.89–$3.90 billion. U.S. commercial revenue alone is projected to grow by over 85%, reaching $1.302 billion by year-end, as more enterprises adopt Palantir's solutions to leverage the power of artificial intelligence. For Q3, the company anticipates revenue between $1.08 billion and $1.09 billion, further reinforcing its strong growth trajectory. Following the blowout earnings report, Palantir stock surged between 4% and 9%, hitting an all-time high above $170 per share. With year-to-date gains now well over 110%, Palantir has cemented its place as one of 2025's top-performing AI stocks, outperforming broader indices like the S&P 500 and Nasdaq. Trading volumes skyrocketed as investor excitement grew over Palantir's expanding AI capabilities and major long-term deals in the pipeline—including a potential $10 billion enterprise contract with the U.S. Army. The stock's momentum has been fueled not just by earnings, but by bullish sentiment that Palantir could become the backbone of AI infrastructure across both public and private sectors. Palantir CEO Alex Karp didn't hold back in celebrating the company's performance, calling the results 'bombastic' and 'phenomenal.' In his signature defiant tone, Karp said skeptics had been 'bent into a kind of submission' by Palantir's continued success. He emphasized that Palantir's strategic investments in AI, national security, and commercial software have positioned the company to be at the center of the next technology revolution. Karp's bold vision—and consistent delivery—has helped fuel investor enthusiasm around the idea that Palantir could be one of the biggest long-term winners in the AI space. While the numbers are impressive, some analysts are raising eyebrows at Palantir's sky-high valuation. The stock is currently trading at 200 to 800 times forward earnings, depending on the metric—a valuation that leaves little room for missteps or slowing growth. Still, others remain bullish. CNBC's Jim Cramer recently declared that Palantir is 'dramatically undervalued' and predicted the stock could soon reach $200. Supporters argue that Palantir's unique positioning at the intersection of AI, national security, and enterprise transformation justifies a premium valuation. Palantir's second-quarter results are more than just a financial milestone—they're a signal that the AI boom is no longer a promise, but a present reality. As businesses and governments race to integrate artificial intelligence into their operations, Palantir is increasingly being seen as a foundational player in this transformation. However, investors should be mindful of the risks. At current levels, Palantir's stock price reflects very high expectations. Continued growth, contract wins, and technological innovation will be crucial to sustaining this momentum. Several key themes are fueling investor enthusiasm for Palantir: AI and data analytics boom : Palantir is riding the wave of artificial intelligence and Big Data, offering scalable, enterprise-level solutions across industries. : Palantir is riding the wave of artificial intelligence and Big Data, offering scalable, enterprise-level solutions across industries. High-margin growth : With a 46% adjusted operating margin and accelerating revenue, Palantir is showing it can grow profitably. : With a 46% adjusted operating margin and accelerating revenue, Palantir is showing it can grow profitably. Strong demand in both government and private sectors : Palantir's ability to secure long-term contracts from defense, intelligence, healthcare, and Fortune 500 companies adds resilience to its revenue streams. : Palantir's ability to secure long-term contracts from defense, intelligence, healthcare, and Fortune 500 companies adds resilience to its revenue streams. Retail investor buzz: Mentions of PLTR stock surged over 370% on Reddit and other trading forums following the earnings announcement. With a $1 billion quarter now under its belt and rapidly accelerating demand across sectors, Palantir Technologies has firmly established itself as a major force in the artificial intelligence and defense tech world. The company's ability to turn hype into results, paired with strategic long-term contracts and strong margins, has put it on a growth path that few in the industry can match. While questions around valuation remain, there's no doubt that Palantir is now at the heart of the AI revolution—and investors, analysts, and competitors alike are watching closely. Q1: Why is Palantir stock rising after Q2 2025 earnings? Palantir stock jumped after hitting $1B revenue and raising full-year AI growth guidance. Q2: What drove Palantir's record-breaking revenue in Q2 2025? Strong AI demand and U.S. defense contracts fueled Palantir's $1 billion quarter.
Yahoo
2 days ago
- Business
- Yahoo
Why Palantir Technologies Stock Soared to a New All-Time High on Tuesday
Key Points Palantir delivered an eighth consecutive quarter of accelerating revenue growth. The company's strong performance continues to confound skeptics. Palantir's valuation is egregious and not for the faint of heart. 10 stocks we like better than Palantir Technologies › Shares of Palantir Technologies (NASDAQ: PLTR) charged out of the gate on Tuesday, spiking as much as 9.8%. As of 10:50 a.m. ET, the stock was still up 8.3%. The catalyst that sent the artificial intelligence (AI) software and data mining specialist surging to new heights was the company's quarterly financial report and bullish commentary that made it clear that the AI revolution is alive and well. Accelerating revenue growth In the second quarter, Palantir generated revenue growth that accelerated to 48% year over year (and 14% sequentially) to a record $1 billion. This resulted in adjusted earnings per share (EPS) of $0.16, which soared 78%. To give the results context, analysts' consensus estimates were calling for revenue of $939 million and adjusted EPS of $0.14, so Palantir cleared both hurdles with room to spare. The headliner was the U.S. commercial segment, as new customers continued to flock to Palantir's Artificial Intelligence Platform (AIP). Revenue for the segment soared 93% year over year and 20% quarter over quarter to $306 million and now represents nearly 31% of the company's total revenue. That's not all. Palantir's U.S. commercial customer count jumped 64% year over year and 12% sequentially, while the segment's total contract value surged 222% to $843 million. Furthermore, the company's remaining performance obligation (RPO) -- or contractually obligated revenue not yet included in sales -- jumped 77% to $2.42 billion. Not only did the company add plenty of new customers to its rolls, but existing customers spent more, as evidenced by Palantir's net dollar retention rate of 128%. Beat and raise Investors have feared the AI revolution would lose steam, but CEO Alex Karp put that issue to bed. In Palantir's quarterly shareholder letter, the chief executive said, "This is still only the beginning of something much larger and, we believe, even more significant." As if to put an exclamation point on the results, the company raised its full-year guidance, far exceeding Wall Street's expectations. Management is calling for revenue of roughly $4.146 billion at the midpoint of its guidance (up from $3.895 billion), which would represent growth of 44%. Palantir also raised its outlook for U.S. commercial revenue to increase at least 85%. The valuation is still a major stumbling block, with the stock currently selling for 246 times next year's expected earnings. That said, the AI revolution continues to gain steam, with Palantir a key provider of the technology. Do the experts think Palantir Technologies is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Palantir Technologies make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,039% vs. just 181% for the S&P — that is beating the market by 858.19%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $631,505!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,103,313!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Danny Vena has positions in Palantir Technologies. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy. Why Palantir Technologies Stock Soared to a New All-Time High on Tuesday was originally published by The Motley Fool
Economic Times
2 days ago
- Business
- Economic Times
Palantir stock soars after $1B Q2 earnings crush forecasts as AI demand fuels 110% YTD surge—now S&P 500's top performer
Synopsis Palantir Q2 earnings just made headlines by hitting a major milestone—crossing $1 billion in revenue for the first time. The company beat Wall Street expectations, driven by booming demand for its AI-powered defense and commercial platforms like AIP, Foundry, and Gotham. With over 110% YTD stock growth, Palantir has become a breakout leader in the S&P 500's AI rally. Its strong government contracts and rapid commercial expansion show it's more than hype—it's delivering real-world AI solutions at scale. This quarter's results firmly place Palantir Technologies as a top name in the fast-growing AI and national security tech space. Reuters Palantir Technologies (PLTR) just delivered its biggest earnings surprise yet, posting over $1 billion in Q2 revenue for the first time—beating Wall Street expectations by a wide margin. Fueled by explosive demand for its AI-powered platforms across defense and commercial sectors, Palantir has now cemented its position as the top-performing stock in the S&P 500 in 2025, with a staggering 110% year-to-date gain. Palantir Q2 earnings crush forecasts with $1 billion revenue milestone, marking a major leap in AI-driven growth- Palantir Technologies (PLTR) just hit a game-changing moment in its history—reporting $1.004 billion in Q2 2025 revenue, a powerful signal of how its AI-powered platforms are reshaping defense, government, and enterprise markets. The number not only blew past Wall Street's forecast of $939 million but also marked the company's first-ever billion-dollar quarter, positioning Palantir as one of the top-performing AI stocks of the year. As investor demand for artificial intelligence platforms heats up, Palantir is showing exactly why it's seen as a strategic backbone for real-time, mission-critical national security systems. In the second quarter of 2025, Palantir posted $1.004 billion in total revenue, surging past analysts' expectations by nearly 7%. This historic beat wasn't just about the numbers—it confirmed Palantir's arrival as a true heavyweight in the AI and defense tech space. Adjusted EPS : $0.16 per share vs. $0.14 expected : $0.16 per share vs. $0.14 expected Year-over-year revenue growth : ~48% : ~48% Q3 revenue guidance: $1.085 billion, signaling more than 50% growth This solid beat sent PLTR stock up over 5% in after-hours trading, continuing a bullish run that's seen the stock more than double in 2025. Palantir's commercial business in the U.S. has quickly become one of the company's most exciting growth engines. In Q2 alone, U.S. commercial revenue surged 93% year-over-year to hit $306 million, as more companies adopt Palantir's Artificial Intelligence Platform (AIP) to drive efficiencies, automation, and decision-making. This massive jump reflects growing interest from sectors like healthcare, energy, manufacturing, and finance—all searching for secure, scalable AI solutions that deliver real-world outcomes. Palantir stock jumped 4.21% during regular trading, closing at $160.66, as investors reacted positively to the company's blowout Q2 earnings. The rally continued into after-hours trading, with shares climbing another 4.69% to $168.20, gaining $7.54 more after the bell. While its commercial business is taking off, Palantir's deep ties with the U.S. government remain a cornerstone of its success. In Q2, government revenue clocked in at $426 million, up 53% from the same time last year. Palantir's defense business is riding high on major wins, including: A $795 million Maven Smart System contract with the U.S. Army with the U.S. Army A long-term framework agreement worth up to $10 billion , consolidating 75+ Army AI programs under one procurement system , consolidating 75+ Army AI programs under one procurement system New NATO-linked deals positioning AIP as a trusted national defense tool Currently, about 40–45% of Palantir's total revenue still comes from federal and defense-related agencies. Palantir remains one of the top-performing stocks in the S&P 500, having surged more than 110% year-to-date. The company has become a clear favorite among investors looking to tap into the long-term upside of artificial intelligence, national security infrastructure, and next-gen software platforms. Its stock rally is backed by real demand, real contracts, and a pipeline that keeps expanding—not just hype. Institutional investors and analysts are now regularly citing Palantir as a foundational piece in the future of U.S. and allied defense systems. At the heart of Palantir's growth story is its Artificial Intelligence Platform (AIP)—a system that blends generative AI with deep, operational data to give users real-time intelligence. From battlefield operations to manufacturing and logistics, AIP is being adopted by clients who need more than just chatbots—they need precision, reliability, and security. Palantir is proving that AI adoption isn't just about innovation—it's about execution and outcomes. Despite the strong earnings, some analysts remain cautious due to Palantir's lofty valuation, which sits at over 260x forward earnings. With expectations now sky-high, the pressure is on for the company to continue delivering impressive results every quarter. Still, few companies in today's market have such a diverse portfolio of AI, data, and defense contracts, making Palantir a unique player in the AI race. Following this milestone quarter, here are the top areas investors are keeping an eye on: 2026 full-year guidance : Will management raise forecasts again or remain cautious amid global uncertainty? : Will management raise forecasts again or remain cautious amid global uncertainty? Commercial pipeline momentum : Can the commercial segment keep pace with government growth? : Can the commercial segment keep pace with government growth? Government dependency risks: Will reduced defense spending or political changes impact future revenue? Palantir's record-setting Q2 results have clearly marked a new chapter for the company. Crossing the $1 billion quarterly revenue mark proves that its platforms are not only in demand—but are becoming essential tools for governments and businesses alike. With its roots in national security and its eyes on commercial enterprise growth, Palantir is no longer just a niche software firm—it's a dominant force in the global AI transformation. Q1. What drove Palantir's Q2 earnings above $1 billion? Strong demand for Palantir's AI platforms in defense and U.S. commercial sectors. Q2. Why is PLTR stock among the top performers in 2025? Its AI-powered revenue growth and major government contracts boosted investor confidence.
Yahoo
6 days ago
- Business
- Yahoo
Palantir at All-Time Highs: Buy Now or Brace for a Reality Check?
Key Points Palantir's commercial revenue growth outpaced its government revenue growth in the first quarter (Q1). In Q1, Palantir closed 31 deals of at least $10 million and 51 deals of at least $5 million. Palantir is the most expensive stock in the S&P 500 based on its forward earnings. 10 stocks we like better than Palantir Technologies › Through the artificial intelligence (AI) boom over the past few years, Nvidia has gotten a lot of attention (rightfully so in many cases), but many would be surprised to see that its stock hasn't been the biggest beneficiary. That would be Palantir (NASDAQ: PLTR), which is up over 2,300% -- more than double Nvidia's gains in that span. Palantir is a software company that builds data and analytics tools that help governments and companies gather insights from large and complex datasets. It may sound relatively simple in theory, but it's fairly hard to do at the scale that Palantir does it. And investors have seemed to take notice. With Palantir's stock hovering near its all-time high, it's normal to wonder whether it's time to hop on the roller coaster while it's still on its way up, or brace for a reality check as investors begin to question if its valuation is warranted. In this case, I believe it's much closer to the latter. Palantir is putting up solid earnings results Let's start with some positive news, and that's Palantir's recent earnings. Palantir is mostly known for its work with U.S. government agencies like the CIA and the Department of Defense. That's been its bread and butter for a while, but its Artificial Intelligence Platform (AIP) has been a huge boost to its commercial business. In the first quarter, Palantir's U.S. government revenue grew 45% year over year to $373 million, and its U.S. commercial revenue grew 71% year over year to $255 million. Its $884 million in total revenue (up 39% year over year) continued its impressive growth, which has seen its revenue grow over 200% in the past five years. Much of this growth can be attributed to Palantir closing large six-figure-plus deals. It closed 139 deals of at least $1 million, 51 deals of at least $5 million, 31 deals of at least $10 million, and grew its total customers by 39% year over year. Palantir expects its fiscal year revenue to fall between $3.89 billion and $3.90 billion, which would be around a 36% increase from 2024. It's hard to ignore Palantir's high valuation Palantir's recent stock price explosion is great news for investors who've held the stock. However, it's not-so-good news for investors looking to acquire their first shares or add to their existing holdings. To put it lightly, Palantir's stock is extremely expensive. As of July 29, Palantir's stock is trading at an absurd 270 times its forward earnings. That's hard to justify for any business in any industry, but especially one whose main business (government contracts) isn't known for being high-growth and has yet to show its current growth rates are sustainable long-term. Notable past software companies that have reached extremely high valuations -- and still much less than what Palantir currently is -- haven't fared well since that peak. Zoom Communications, Bill Holdings, and Snowflake each traded at triple-digit multiples of their sales at one point, and they're now down 86%, 86%, and 45% from their peaks, respectively. This doesn't mean Palantir will follow the same fate, but it would need to have a historical and unprecedented run to justify the levels it's currently trading at. And unfortunately, I don't see it happening. How investors should approach Palantir's stock If you're a believer in Palantir's long-term potential, I would recommend dollar-cost averaging to begin or continue acquiring shares. When you dollar-cost average, you decide on an amount you're willing to invest in a stock and then put yourself on a set investing schedule, making the investments regardless of prices at that time. For example, if you have $1,000 you want to invest in Palantir, you could decide to invest $100 every other Monday, $250 on the first of each month, or whatever works best with your situation. The schedule you put yourself on isn't as important as making sure you stick to it and stay consistent through ups and downs. By dollar-cost averaging, you avoid a situation where you invest a lump sum right before a huge stock price drop happens. Palantir has had instances where its stock price dropped by double-digit percentages in a day, so it's not that far-fetched -- especially with its current stretched valuation. Should you invest $1,000 in Palantir Technologies right now? Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $625,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,090,257!* Now, it's worth noting Stock Advisor's total average return is 1,036% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bill Holdings, Nvidia, Palantir Technologies, Snowflake, and Zoom Communications. The Motley Fool has a disclosure policy. Palantir at All-Time Highs: Buy Now or Brace for a Reality Check? was originally published by The Motley Fool
Yahoo
30-07-2025
- Business
- Yahoo
Palantir Technologies Stock: Analyst Estimates & Ratings
With a market cap of $368.7 billion, Palantir Technologies Inc. (PLTR) builds and deploys advanced software platforms for governments and commercial clients worldwide. Its key products - Gotham, Foundry, Apollo, and the Artificial Intelligence Platform, support data integration, analysis, and operational decision-making across industries and national security sectors. Shares of the Denver, Colorado-based company have significantly outperformed the broader market over the past 52 weeks. PLTR stock has surged 501.5% over this time frame, while the broader S&P 500 Index ($SPX) has gained 17.4%. In addition, shares of Palantir Technologies have climbed 109.7% on a YTD basis, compared to SPX's 8.5% rise. More News from Barchart Here's What Happened the Last Time Novo Nordisk Stock Was This Oversold As SoFi Raises 2025 Guidance, Should You Buy, Sell, or Hold SOFI Stock Here? Earnings Will Be 'Worse Than Expected' for UnitedHealth. How Should You Play UNH Stock Here? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Looking closer, PLTR stock has also outpaced the Technology Select Sector SPDR Fund's (XLK) 26.1% return over the past 52 weeks and 13.9% increase on a YTD basis. Despite beating Q1 2025 revenue expectations with $883.9 million on May 5, Palantir's shares tumbled 12.1% the next day due to a 10% year-over-year decline in global sales, raising concerns about the sustainability of its international growth. While U.S. sales surged 55% and the company raised its full-year forecast, investors were spooked by signs of weakening demand outside the U.S. For the current fiscal year, ending in December 2025, analysts expect PLTR's EPS to grow 362.5% year-over-year to $0.37. The company's earnings surprise history is mixed. It beat the consensus estimates in one of the last four quarters while missing on three other occasions. Among the 21 analysts covering the stock, the consensus rating is a 'Hold.' That's based on four 'Strong Buys,' 13 'Hold' ratings, one 'Moderate Sell,' and three 'Strong Sells.' On Jul. 10, Wedbush raised its price target on Palantir Technologies to $160, citing strong confidence in the company's AI strategy and maintaining an 'Outperform' rating. As of writing, the stock is trading above the mean price target of $110.72. The Street-high price target of $170 implies a potential upside of 7.6% from the current price levels. On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
