TLDR
- Palantir reported $1 billion quarterly revenue, crushing analyst estimates by $60 million with 48% year-over-year growth
- Operating income jumped 83% to $464 million while free cash flow more than tripled to $569 million
- Bank of America raised price target from $180 to $215, projecting commercial sales could hit $10 billion by 2030
- Company raised full-year guidance to $4.1-4.2 billion revenue from previous $3.9 billion forecast
- Stock trades at 240 times earnings, creating high expectations for sustained momentum
Palantir Technologies delivered another knockout quarter that has Wall Street buzzing about the data analytics company’s AI-driven future. The Denver-based firm continues to capitalize on surging demand for artificial intelligence solutions across government and commercial sectors.
The company reported second-quarter revenue of $1 billion, easily beating analyst estimates of $940 million. This represents a robust 48% jump compared to the same period last year and marks another quarter of accelerating growth.
Operating metrics told an even more compelling story. Operating income surged 83% to $464 million from the previous year. Free cash flow performance was particularly impressive, more than tripling to $569 million during the quarter.
Palantir ended the period with $5.8 billion in net cash, providing substantial financial flexibility for future investments. The strong results sent PLTR shares up 4.6% in after-hours trading.
Revenue Guidance Gets Major Upgrade
Management expressed growing confidence by raising expectations across multiple timeframes. For the upcoming quarter, Palantir projects revenue of $1.1 billion with operating income near $495 million.
The full-year outlook received a boost as well. Palantir now expects $4.1 to $4.2 billion in revenue for 2025, up from the previous guidance of $3.9 billion.
This marks the latest in a series of guidance increases as demand for AI-powered analytics continues exceeding internal projections. The company’s ability to consistently raise forecasts has become a hallmark of its recent performance.
Senior equity analyst Matt Britzman from Hargreaves Lansdown noted that Palantir’s growth trajectory shows no signs of slowing down. The momentum appears broad-based across both government and commercial customer segments.
AI Platform Drives Customer Stickiness
Palantir’s competitive advantage stems from its sophisticated technology stack. The company’s “ontology framework” connects fragmented data sources and makes them usable in real time. The AI Platform then integrates large language models into both Gotham and Foundry platforms.
Once organizations adopt Palantir’s systems, switching becomes extremely difficult. The data insights become too valuable to abandon, creating sticky revenue streams that benefit long-term growth.
Bank of America Sees Massive Commercial Potential
Wall Street is taking notice of Palantir’s expanding market opportunity. Bank of America recently revised its outlook, raising the price target from $180 to $215 based on stronger growth projections.
The investment bank expects commercial sales could exceed $10 billion by 2030. Revenue growth rates of 41% in 2026 and 39% in 2027 support this aggressive forecast.
Boeing recently joined Palantir’s growing commercial customer base, selecting Foundry for defense projects. The aerospace giant adds another Fortune 500 name to the company’s expanding portfolio.
The average spending by Palantir’s top 20 clients reached $75 million over the past 12 months, representing a 30% increase from the previous year. This demonstrates deepening customer relationships and expanding use cases.
