Palantir Technologies (PLTR) surged over 21% on Tuesday after delivering an earnings report that shattered expectations.
The company posted a 36% year-over-year revenue increase to $828 million, significantly outperforming Wall Street’s consensus estimate of $782 million. Adjusted earnings per share came in at $0.14, soaring 75% and easily surpassing forecasts.
The government segment remained strong with 45% growth, while the U.S. commercial business emerged as the key driver, expanding 64% year over year to $214 million. Palantir’s Artificial Intelligence Platform (AIP) fueled this momentum, attracting a 73% increase in commercial customers and pushing its remaining deal value up 99%.
With no debt and a robust $5.2 billion cash reserve, Palantir raised its 2025 revenue guidance to between $3.74 billion and $3.75 billion. The company’s U.S. commercial revenue is now expected to climb 54%, reflecting an acceleration in enterprise AI adoption.
This article was created with AI assistance and reviewed by an editor. For details, please refer to our Terms of Use.
The government segment remained strong with 45% growth, while the U.S. commercial business emerged as the key driver, expanding 64% year over year to $214 million. Palantir’s Artificial Intelligence Platform (AIP) fueled this momentum, attracting a 73% increase in commercial customers and pushing its remaining deal value up 99%.
With no debt and a robust $5.2 billion cash reserve, Palantir raised its 2025 revenue guidance to between $3.74 billion and $3.75 billion. The company’s U.S. commercial revenue is now expected to climb 54%, reflecting an acceleration in enterprise AI adoption.
The AI Landscape: Commoditization Fuels Growth
Palantir executives reinforced their long-term AI vision, emphasizing how declining model costs are shifting value to software platforms like AIP. Chief Technology Officer Shyam Sankar underscored this trend, citing the Chinese firm DeepSeek’s ability to develop cutting-edge AI models at a fraction of prior costs.
“We’ve been saying for the last two years that models are commoditizing,” Sankar noted. “The price of inference is dropping like a rock.”
This shift benefits not only Palantir but also companies like Snowflake (SNOW), Databricks, and Salesforce (CRM), all of which stand to gain from the lower cost of AI compute. Snowflake, which recently launched an enterprise-focused AI model in under three months with a budget below $2 million, saw its stock rise 3.5% in early trading.
Palantir executives reinforced their long-term AI vision, emphasizing how declining model costs are shifting value to software platforms like AIP. Chief Technology Officer Shyam Sankar underscored this trend, citing the Chinese firm DeepSeek’s ability to develop cutting-edge AI models at a fraction of prior costs.
“We’ve been saying for the last two years that models are commoditizing,” Sankar noted. “The price of inference is dropping like a rock.”
This shift benefits not only Palantir but also companies like Snowflake (SNOW), Databricks, and Salesforce (CRM), all of which stand to gain from the lower cost of AI compute. Snowflake, which recently launched an enterprise-focused AI model in under three months with a budget below $2 million, saw its stock rise 3.5% in early trading.
A Bullish Future for Palantir
CEO Alex Karp reaffirmed the company’s leadership in AI, calling the current phase “the beginning of the first act” in a transformation that will play out over decades. Wedbush analysts echoed this optimism, raising their price target for Palantir from $90 to $120, citing the company’s dominance in AI-driven analytics.
Despite the stock’s meteoric rise—up 392% over the past year—investors should note that Palantir trades at 192 times next year’s expected earnings. While the valuation is steep, the company’s rapid growth and strong financial position suggest that any pullback could present a buying opportunity for long-term believers in AI’s future.
CEO Alex Karp reaffirmed the company’s leadership in AI, calling the current phase “the beginning of the first act” in a transformation that will play out over decades. Wedbush analysts echoed this optimism, raising their price target for Palantir from $90 to $120, citing the company’s dominance in AI-driven analytics.
Despite the stock’s meteoric rise—up 392% over the past year—investors should note that Palantir trades at 192 times next year’s expected earnings. While the valuation is steep, the company’s rapid growth and strong financial position suggest that any pullback could present a buying opportunity for long-term believers in AI’s future.
Considering a $1,000 investment in these companies?
Our team at Stock Investor carefully curated a list of top stocks with the potential for significant returns, suitable for beginners and seasoned investors alike who are eager to learn a trade and unearth the best stocks to buy. Though not featured in this article, these selected stocks could be game-changers in the future.For those seeking dynamic trading experiences, consider joining our Swing Trade Alerts, Option Income Alert, or our Trading Room. Take advantage of our special offer today, starting at just $1 in the first month.
Unlock the secrets of Smart Money
Explore how billionaires and institutions are influencing the market. Follow their every move with DarkOption Flow and stay updated on essential market insights. Begin your journey to informed investing today!
Education
And if you're a fan of Invest opedia, you'll appreciate what we offer at SharperTrades even more. Explore our comprehensive option trading course and technical trading course, where you can learn trading, analyze stocks, delve into chart patterns for stocks, and gain invaluable insights for making the best company investments.
Unlock Your Stock Market Edge with SharperTrades. Dive into powerful trading tools, learn a trade, and receive expert guidance. Stay up-to-date with regular market updates. Learn trading, basics of investing, and how to pick the best stocks to buy. Whether you're a beginner or seasoned investor and trader, we've got you covered. Get started for free, today!