Palantir Technologies lifts outlook after beating Wall Street expectations with a 48% jump in quarterly revenue.
Palantir Technologies has raised its full-year revenue guidance for 2025 for the second time this year, as booming demand for its artificial intelligence (AI) platform continues to drive significant growth across both its commercial and government operations.
The data analytics and software company now expects to generate between $4.14 billion and $4.15 billion in revenue this year—up from its earlier estimate of $3.89 billion to $3.90 billion.
The upgrade followed a 48% increase in second-quarter revenue, which exceeded $1 billion. Sales to U.S. commercial clients surged 93% year-on-year to $306 million, while American government revenue grew 53% to $426 million. Altogether, U.S. government contracts accounted for more than 42% of the company’s quarterly revenue.
“This was a phenomenal quarter,” said Alex Karp, Palantir’s co-founder and chief executive. “We continue to see the astonishing impact of AI leverage.”
In a letter to shareholders, Karp attributed the growth to “the arrival of language models, the chips necessary to power them, and our software infrastructure—one that allows organisations to tether the power of artificial intelligence to objects and relationships in the real world.”
Palantir’s AI platform has become a key tool for companies looking to streamline operations. Clients including American Airlines, Heineken, Wendy’s, and Walgreens use the technology to optimise crew scheduling, reduce inventory costs, and reroute delivery trucks in real-time.
Founded in 2003 with backing from billionaire investor Peter Thiel, Palantir initially built its reputation by working with U.S. intelligence agencies such as the CIA following the September 11 attacks. The company has since expanded into the private sector, aiming to reduce its dependence on government contracts.
Still, Palantir’s ties to the U.S. government remain strong. Just last week, the U.S. Army announced it could purchase up to $10 billion worth of services from Palantir over the next decade.
For the third quarter, Palantir also projected revenue above Wall Street estimates, signalling continued momentum. Full-year sales from U.S. commercial customers are now expected to exceed $1.30 billion, up from prior guidance of more than $1.18 billion.
Palantir posted net income of $327 million in the second quarter, marking a 144% increase year-on-year. Revenue of $1 billion topped analyst forecasts of $937.7 million.
The company’s share price has skyrocketed 114% since the start of the year, and rose another 4.2% in after-hours trading on Monday to $167.33, following the earnings report.
“Palantir is continuing to exceed increasingly high expectations,” said Gil Luria, an analyst at DA Davidson. “They have accelerants on both sides—commercial and government. On the government side, their capabilities have gotten to a point where they can be the lead contractor on increasingly large projects.”
As Palantir continues to capitalise on the AI boom, it is increasingly positioning itself not just as a data analytics firm, but as a strategic technology partner to some of the world’s largest institutions.
