Palantir Reports Strong Revenue Growth and Increases Guidance Amid AI Boom

Palantir Technologies recently announced a significant boost in its revenue guidance, driven by a surge in commercial and government revenue. The generative artificial intelligence software company has grown to a valuation of $1 trillion. Their revenues increased by 39% to $634.3 million over last year. Palantir grew like crazy closing 139 deals in the reporting period, with all of those having a value of no less than $1 million. Of these, 51 transactions exceeded $5 million.

The firm’s U.S. revenues saw a significant 55% jump, totaling $628 million. Palantir’s commercial revenues were up 71% year-over-year, growing to a robust $255 million. At the same time, sales in the government segment jumped 45%, to $373 million. This expansion reflects a growing adoption of Palantir’s tools within the U.S. defense sector, which has been pivotal in driving the company’s success.

Palantir has increased its full year revenue guidance to a range of $3.89 billion and $3.90 billion. This new increase signals the company’s continued confidence in strong market demand. To that end, the company projects U.S. commercial revenues to exceed $1.178 billion for the fiscal year. In addition, Palantir forecast revenues for the ongoing third quarter to be between $934 million and $938 million.

Palantir posted a massive bottom line beat with net income of roughly $214 million or 8 cents a share. That’s more than double the amount for the same quarter last year, when they posted about $105.5 million or 4 cents per share. We now estimate the adjusted operating income will fall in the range of $1.711 billion and $1.723 billion. Moreover, we project full-year adjusted free cash flow to be $1.6-$1.8 billion.

Even in the wake a wider tech stock slump in 2025, Palantir’s shares have been marching to their own drum. CEO Alex Karp noted that the company’s strong performance underlines a transformative shift within Palantir and the industry at large.

“We believe our results are indicative of a revolution sweeping across our business and industry.” – Alex Karp

Karp emphasized the company’s role in modern enterprise solutions by stating, “We are delivering the operating system for the modern enterprise in the era of AI.”