Palantir has hit a new milestone, crossing $1 billion for the first time with its second-quarter revenue. The company, owned by Peter Thiel, confirmed that revenue grew about 48% year-over-year to hit $1.004 billion. According to the company, the figure was influenced by growth in both United States commercial and government deals.
The company has now set its sights on a new $1 trillion valuation. The firm has also raised its full-year guidance across key metrics, noting an increase in demand for its AI software. “We are guiding to the highest sequential quarterly revenue growth in our company’s history, representing 50% year-over-year growth. This was a phenomenal quarter. We continue to see the astonishing impact of AI leverage,” CEO Alex Karp said.
Revenue from the United States rose by 68% compared to the same quarter last year, reaching $733 million. Commercial deals brought in $306 million, up by 93%, while government contracts generated $426 million, which represents 53% over last year. The company also saw its Rule of 40 score hit 94% in the quarter.
Palantir records $1 billion second-quarter milestone
Palantir mentioned that its total contract value hit $2.27 billion, representing a rise of 140% compared to the same time in 2024. Commercial contracts represented about $843 million of the total, rising 222% year-over-year. The company also mentioned that the remaining deal value from US commercial accounts has reached $2.79 billion, which is about 145% compared to 2024 and 20% higher than Q1.
In terms of user count, Palantir saw a 43% rise year-over-year and a 10% quarter-over-quarter jump, showing that the firm’s market presence has been growing. The firm also saw GAAP income from operations of $269 million, with a margin of 27%, while adjusted operating income came in at $464 million with a 46% margin. Net income hit $327 million, which gives it a 33% margin, while adjusted net income was $404 million.
Palantir also brought in $539 million in cash from operations and ended the quarter with $569 million in adjusted free cash flow. The company now holds $6 billion in cash, cash equivalents, and U.S. Treasury securities. Earnings per share stood at $0.13 GAAP and $0.16 adjusted. Adjusted EBITDA hit $470 million, giving a 47% margin.
The firm expects increased revenue in Q3
According to Palantir, it expects revenue to fall between $1.083 billion and $1.087 billion in Q3, and adjusted income from operations to range between $493 million and $497 million. For the full year, revenue guidance has been raised to between $4.142 billion and $4.150 billion. Adjusted income from operations has also been estimated to fall between $1.912 billion and $1.920 billion, and adjusted free cash flow is expected to come in between $1.8 billion and $2.0 billion.
“All the value in the market is going to go to chips and what we call ontology,” Alex said in his shareholder letter. He attributed the latest milestone to several developments, including the rapid combination of language models, chip capacity, and Palantir’s software. Alex also added that this momentum came after years of investment in infrastructure and being dismissed by critics. “The skeptics are admittedly fewer now, having been defanged and bent into a kind of submission,” he added.
During the earnings call, Alex mentioned that US companies need to resist becoming bland compromises of global preferences. He also warned against shallow acceptance of all opinions, referencing C.S. Lewis’s 1943 book The Abolition of Man and its warning about men without chests. “Such men promise to shepherd us forward yet lack much substance,” he said. “They are little more than administrative caretakers.”
After the release of the report and earnings call, Palantir’s stock surged by more than 3% in extended trading, while stock futures reacted to its outstanding outperformance across major indexes. Dow Jones futures rose 74 points, or 0.2%, and S&P 500 and Nasdaq 100 futures each also rose 0.2%.
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