Palantir posts 48% revenue growth and beats expectations across the board

Shares of Palantir Technologies Inc. rose more than 3% in late trading today after the big data analytics company reported earnings and revenue beats in its fiscal second quarter and gave an outlook ahead of expectations thanks to surging growth.

For the quarter that ended on June 30, Palantir reported adjusted earnings per share of 16 cents, up from nine cents in the same quarter of 2024, on revenue of $1.004 billion, up 48% year-over-year. Both figures were ahead of the 14 cents per share and revenue of $937.45 million expected by analysts.

U.S. revenue jumped 68% year-over-year in the quarter, to $733 million, with commercial revenue up 93%, to $306 million, and government revenue up 53% year-over-year, to $426 million. The company closed 157 deals of at least $1 million each in the quarter, 66 deals of at least $5 million, and 42 deals of at least $10 million. It closed a record-setting $2.27 billion of total contract value — up 140% year-over-year.

Cash from operations in the quarter came in at $539 million and Palantir ended the quarter with $6 billion in cash, cash equivalents and securities on hand.

Business highlights in the quarter included the U.S. Army consolidating 75 legacy Palantir software contracts into a single 10‑year enterprise agreement with a ceiling of up to $10 billion, signaling a shift to “a la carte,” volume‑based artificial intelligence procurement. Alongside the deal, Palantir introduced its TITAN mobile AI targeting unit, a software-led, hardened system for real‑time battlefield analytics that further cemented its role as a prime contractor in defense modernization.

In mid‑May, Palantir forged a strategic integration with Divergent Technologies Inc., embedding its Adaptive Production System directly into Warp Speed and Foundry, giving users AI-native, on-demand additive manufacturing capabilities. The setup lets defense and industrial clients automatically detect supply chain bottlenecks and close them through digital fabrication, all within Palantir’s interface.

Right at the end of the quarter, Palantir also announced that Accenture Federal Services would become its preferred U.S. federal implementation partner, with plans to train and certify more than 1,000 Accenture data and AI professionals on Foundry and Palantir’s Artificial Intelligence Platform. The collaboration aims to scale AI‑driven automation across mission command, federal supply chain orchestration and financial intelligence programs by industrializing Palantir implementations.

“We continue to see the astonishing impact of AI leverage,” co-founder and Chief Executive Alex C. Karp said in the company’s earnings release. “We are guiding to the highest sequential quarterly revenue growth in our company’s history, representing 50% year-over-year growth.”

For its fiscal third quarter, Palantir said that it expected revenue of $1.083 billion to $1.087 billion and for the full year, revenue of $4.142 billion to $4.15 billion. For the full year, analysts had been expecting $3.9 billion.

Image: Palantir