Palantir Technologies has hit a major milestone, reporting over $1 billion in quarterly revenue for the first time—a figure that far exceeded analysts’ expectations. Fueled by surging demand for artificial intelligence software and a boost in U.S. government contracts, the company also raised its full-year revenue and earnings outlook, sending its stock soaring more than 5%.
The Denver-based tech firm reported earnings per share of 16 cents on an adjusted basis, beating the expected 14 cents. Total revenue came in at $1 billion, up 48% from the same period last year and ahead of the projected $940 million. Analysts had not anticipated this level of performance until the fourth quarter.
“The growth rate of our business has accelerated radically, after years of investment and skepticism,” said CEO Alex Karp in a letter to shareholders. “The skeptics are admittedly fewer now, having been defanged and bent into a kind of submission.”
Palantir now expects its full-year revenue to range between $4.142 billion and $4.150 billion, an increase from previous guidance of $3.89 billion to $3.90 billion. For the third quarter alone, the company forecasts revenues between $1.083 billion and $1.087 billion, well above market expectations.
A major driver of this growth has been the company’s performance in the United States, where revenues jumped 68% year-over-year to $733 million. U.S. commercial revenue nearly doubled to $306 million, while government contracts saw a 53% rise, reaching $426 million. Much of this growth is attributed to ongoing efforts to improve efficiency in government spending, a key focus of the current administration.
The company also disclosed the closing of 66 deals worth at least $5 million, and 42 deals totaling over $10 million during the quarter. The total value of contracts surged 140% year-over-year to reach $2.27 billion.
Palantir’s profitability also saw substantial improvement, with net income climbing 144% to $326.7 million, up from $134.1 million a year earlier. This represents earnings of 13 cents per share, more than double last year’s 6 cents.
As a result of this performance, Palantir’s market valuation has skyrocketed past $379 billion, placing it among the top 10 most valuable U.S. tech companies—leapfrogging legacy giants like Salesforce, IBM, and Cisco. Its stock price reached a new high, although it now trades at a premium valuation of 276 times forward earnings, with Tesla being the only other major tech firm in triple digits at 177.
CEO Alex Karp emphasized the confluence of new technologies—such as advanced language models and the powerful chips that drive them—as a key factor behind Palantir’s explosive growth. “It has been a steep and upward climb—an ascent that reflects the remarkable alignment of AI innovation and our software infrastructure,” he noted.
Investors appear to be buying into that vision, betting heavily on Palantir’s positioning at the intersection of AI, national security, and enterprise software. The company’s momentum shows no signs of slowing, as it continues to win large-scale contracts and expand its footprint across both public and private sectors.
