AI-driven growth, strong U.S. contracts, and Trump’s cost-cutting push propel Palantir into the top 10 U.S. tech companies by market value
Palantir (PLTR) delivered a blockbuster quarter on Monday, surpassing Wall Street expectations and posting more than $1 billion in quarterly revenue for the first time. The Denver-based artificial intelligence software provider also raised its full-year revenue outlook, fueled by surging demand for its AI-powered analytics and expanding government contracts.
Earnings came in at 16 cents per share, adjusted, beating the 14 cents expected. Revenue rose 48% year-over-year to $1 billion, outpacing analyst estimates of $940 million. Palantir now expects full-year revenue between $4.142 billion and $4.150 billion, up from prior guidance of around $3.9 billion. Third-quarter revenue is projected between $1.083 billion and $1.087 billion, well ahead of consensus estimates.
CEO Alex Karp credited years of investment in AI infrastructure and shifting market sentiment. “The growth rate of our business has accelerated radically… The skeptics are admittedly fewer now, having been defanged and bent into a kind of submission,” Karp said in his letter to shareholders.
U.S. revenue surged 68% to $733 million, with U.S. commercial revenue nearly doubling to $306 million. Government contracts remain a cornerstone, climbing 53% to $426 million, bolstered by President Donald Trump’s campaign to streamline federal operations, which has included layoffs and contract consolidations.
During the quarter, Palantir secured 66 deals worth at least $5 million each and 42 deals of $10 million or more, pushing total contract value up 140% year-over-year to $2.27 billion. Net income more than doubled to $326.7 million, or 13 cents per share, from $134.1 million, or 6 cents per share, a year earlier.
Investor enthusiasm has propelled Palantir’s market value to over $379 billion, surpassing Salesforce, IBM, and Cisco to rank among the top 10 U.S. tech companies. Shares, which have more than doubled this year, hit a record high Monday.
Valuations remain steep, with shares trading at 276 times forward earnings, according to FactSet — one of the highest multiples in the S&P 500, alongside Tesla. Despite the premium, investors continue to bet on Palantir’s position at the forefront of the AI-driven analytics revolution.
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