Palantir (PLTR) Q2 Revenue Surges 48%

Core Insights - Palantir Technologies reported strong Q2 2025 earnings with GAAP revenue of $1.00 billion, surpassing analyst estimates of $937.7 million, and adjusted EPS of $0.16 compared to the consensus of $0.14, indicating robust performance in both revenue and profitability [1][2] - The company experienced significant year-over-year growth in its U.S. commercial (93%) and government (53%) sectors, while international commercial revenue declined by 5% year-over-year [1][5][8] Financial Performance - GAAP revenue reached $1.00 billion, a 48% increase from Q2 2024's $678 million [2] - Adjusted free cash flow surged to $569 million, up 282.2% year-over-year from $149 million [2][6] - GAAP net income more than doubled to $327 million, reflecting a 142.2% increase from $135 million in the previous year [2][6] Business Overview - Palantir develops software platforms for data integration, analysis, and management, with key products including Gotham, Foundry, Apollo, and the Artificial Intelligence Platform (AIP) [3] - The company serves a diverse client base across government, defense, healthcare, manufacturing, and financial services [3] Strategic Focus - Current priorities include advancing AI-powered software, increasing AIP adoption, and strengthening relationships with U.S. government entities [4] - The company emphasizes technological innovation and customer retention in high-stakes data environments [4] U.S. Market Performance - U.S. revenue increased by 68% year-over-year to $733 million, with commercial sales driven by AIP adoption [5] - The company closed 157 deals of at least $1 million each, with a record overall contract value of $2.27 billion, up 140% year-over-year [5][7] International Market Performance - International commercial revenue declined by 5% year-over-year and 11% sequentially, indicating a need for improvement in this area [8][9] - Management did not provide detailed international figures, reinforcing the focus on U.S. business as the primary growth driver [9] Technology and Product Development - Strong demand for AIP has been noted, with clients reporting operational gains [10] - New use cases for AIP are emerging, enhancing business processes and decision-making capabilities [11] - Continuous improvement and heavy investment in R&D, particularly in AI and data privacy, are essential for maintaining product leadership [12] Financial Outlook - Management raised guidance for FY2025, expecting Q3 2025 GAAP revenue between $1.083 billion and $1.087 billion, and full-year revenue guidance of $4.142–$4.150 billion [13] - U.S. commercial revenue is projected to exceed $1.302 billion for FY2025, representing at least 85% growth [13] - Key variables to monitor include customer expansion outside the U.S. and trends in contract cancellations [14]