PLTR Goes Nuclear: AI-Fueled Quarter Blows Past Wall Street

Core Insights - Palantir Technologies (PLTR) reported a record second-quarter 2025 earnings, achieving its first-ever billion-dollar quarter with revenues of $1 billion, a 48% year-over-year increase, surpassing expectations [2][6] - The company's growth is driven by its Artificial Intelligence Platform (AIP) and strong demand from both government and commercial sectors, particularly in the U.S. [3][11] - PLTR's stock has more than doubled year-to-date and increased over 500% in the past 12 months, positioning it as a leading AI stock [4] Financial Performance - Q2 2025 earnings per share were 16 cents, exceeding expectations by 2 cents and reflecting a 78% increase from the previous year [7] - Adjusted EBITDA reached $470.9 million, a 69% increase year-over-year, with an adjusted EBITDA margin of 47%, up 800 basis points [7] - U.S. revenues grew 68% year-over-year to $733 million, with commercial revenues surging 93% to $306 million and government revenues rising 53% to $426 million [8][9] Growth Drivers - The AIP is the primary catalyst for PLTR's growth, with U.S. commercial revenue jumping 71% year-over-year in Q1 and continuing to grow by 93% in Q2 [11] - The total U.S. commercial contract value increased by 222% year-over-year, and customer count grew by 43% [15] - PLTR closed 157 deals worth at least $1 million, with 42 deals exceeding $10 million, indicating strong customer traction [10] Future Guidance - Palantir raised its full-year 2025 revenue guidance to between $4.14 billion and $4.15 billion, up from a previous estimate of $3.90 billion [16] - For Q3 2025, the company expects revenues of approximately $1.085 billion, above current consensus expectations [16] - Adjusted income from operations is projected between $1.91 billion and $1.92 billion, with adjusted free cash flow expected between $1.8 billion and $2 billion [17] Financial Health - Palantir ended the quarter with $929.5 million in cash and equivalents, down from $2.1 billion at the end of 2024 due to ongoing investments [19] - Operating cash flow for the quarter was $539.3 million, reflecting the company's profitability and operational efficiency [19] Competitive Position - Palantir's strategy of providing immediately useful AI solutions distinguishes it from competitors, who are still in pilot deployment phases [20] - The company is capitalizing on the tangible utility of AI, delivering operationalized solutions that clients are eager to adopt [21] - PLTR's performance is part of a broader AI surge, with its growth mirroring that of peers like NVIDIA, while other companies like C3.ai face challenges [22]