Why Palantir Stock Skyrocketed 80.3% in the First Half of 2025 -- and Has Kept Rising

Core Insights - Palantir's stock experienced an 80.3% increase in the first half of 2025, significantly outperforming the S&P 500's 5.5% gain, with a total increase of approximately 1,570% over the last three years [1][5] Financial Performance - In Q4 of the previous year, Palantir reported non-GAAP earnings per share of $0.14 on revenue of $828 million, exceeding analyst expectations of $0.11 per share on sales of $776 million, with a year-over-year sales increase of 36% [3] - For Q1 of the current year, Palantir posted adjusted earnings of $0.13 per share on sales of $884 million, aligning with analyst estimates for earnings but surpassing sales expectations of $863 million [4] Market Sentiment and Valuation - The company's valuation has been positively influenced by excitement surrounding AI and its applications in the defense sector, alongside expectations of favorable conditions under the Trump administration [5] - As of July 2025, Palantir's share price rose an additional 11%, with management guiding for annual revenue between $3.89 billion and $3.902 billion, indicating a growth rate of approximately 36% at the midpoint [6] - Palantir is currently trading at about 259 times this year's expected earnings and 91 times expected sales, reflecting a growth-dependent valuation that carries potential volatility [7]