TLDR
- Palantir reported first-ever $1 billion quarterly revenue in Q2 2025, up 48% year-over-year
- U.S. commercial revenue surged 93% year-over-year while government revenue grew 53%
- Wedbush raised price target to Street-high $200, calling Palantir the “next Oracle” of AI
- Stock trades at premium valuation with P/E ratio over 800 and market cap of $420+ billion
- Company secured major deals including $1.3 billion Pentagon contract expansion
Palantir Technologies achieved a historic milestone in Q2 2025, reporting its first billion-dollar quarterly revenue. The AI and data analytics company posted revenue of $1.004 billion, up 48% year-over-year and beating analyst estimates.
The earnings drove PLTR stock past $180, extending its position as the S&P 500’s top performer in 2025. Shares have gained 134% year-to-date and 467% over the past year.
Commercial Growth Powers Results
U.S. commercial revenue jumped 93% year-over-year to $306 million, now representing over 30% of total quarterly revenue. The company closed 157 deals worth over $1 million, including 66 deals exceeding $5 million.
Palantir’s top 20 customers now average $75 million in trailing 12-month revenue, up 30% annually. Total contract value reached $2.3 billion for the quarter, while U.S. commercial contract value exploded 222% to $843 million.
Recent commercial wins include partnerships with Fannie Mae and The Joint Commission for healthcare applications. The company’s AI platform continues attracting enterprise customers seeking mission-critical data solutions.
Government revenue remained strong at $553 million, growing 49% year-over-year. U.S. government revenue specifically increased 53% annually.
The Pentagon expanded Palantir’s Maven Smart System contract to $1.3 billion through 2029. The original $480 million contract provides AI-powered technologies to military operations.
Palantir Stock Price Prediction
Wedbush analyst Dan Ives raised his PLTR price target to $200 from $160, the highest on Wall Street. The firm maintained its “Outperform” rating, calling Palantir the potential “next Oracle” of AI.
Piper Sandler increased its target to $182 from $170, keeping an “Overweight” rating. The firm praised Palantir’s eighth consecutive quarter of revenue acceleration.
However, valuation concerns persist. PLTR trades at 439 times forward earnings and a price-to-sales ratio above 140. The stock’s $420+ billion market cap puts it in premium territory.
Wall Street consensus remains cautious with a “Hold” rating. Only four of 22 analysts maintain “Strong Buy” ratings, while 15 rate it a “Hold.”
Updated Financial Guidance
Management raised full-year revenue guidance to $4.142-$4.150 billion, up from previous estimates. U.S. commercial growth is projected to increase at least 85% for 2025.
The company expects Q3 revenue between $1.083-$1.087 billion. Adjusted operating income is projected at $493-$497 million for the third quarter.
Palantir reported adjusted earnings per share of $0.16 for Q2. Operating income reached $464.4 million with a 46.3% margin, while adjusted free cash flow hit $568.8 million.
Analysts expect Q3 earnings per share of $0.09, representing 50% year-over-year growth. Full-year 2025 EPS estimates stand at $0.38 per share.
