Palantir Technologies (PLTR) crossed a historic milestone in the second quarter of 2025, reporting its first-ever billion-dollar quarter. Revenue surged nearly 48% year-over-year to approximately $1.004 billion, easily beating Wall Street’s expectations of roughly $937–940 million. Adjusted earnings per share came in at $0.16, topping consensus forecasts of $0.14, while adjusted operating margins climbed to an impressive 46%.
Free cash flow soared to $569 million, representing a margin of 57%, and the company posted GAAP net income of about $327 million, or a 33% net margin. Palantir’s Rule of 40 score — a key measure of growth and profitability — hit a remarkable 94%, underlining its rare balance of aggressive expansion and strong operational efficiency. The company’s balance sheet remains robust, with a cash and short-term investment reserve of approximately $6 billion.
A closer look at the numbers reveals that Palantir’s U.S. business is powering much of the momentum. Domestic revenue surged 68% to $733 million, with U.S. commercial revenue skyrocketing 93% to $306 million and U.S. government revenue climbing 53% to $426 million. Internationally, Palantir continues to serve a growing base of major commercial clients in Europe and high-value government partners outside the United States, though CEO Alex Karp made clear that the company’s most transformative work is occurring in its home market.
Total Contract Value (TCV) rose 140% year-over-year to $2.3 billion, driven in part by a 222% jump in U.S. commercial TCV to $843 million. Off the back of these results, Palantir raised its full-year guidance to $4.14-4.15 billion, with U.S. commercial revenues now expected to surpass $1.3 billion — an increase of over 85% from the prior year.
On the company’s earnings call, Karp delivered one of his most emphatic visions to date, framing Palantir’s success not just as a business story, but as part of a broader national transformation. He pointed to key offerings such as Ontology, Foundry, and Maven as being “on the front line” of what he called “a perfect time for Palantir” and “a revolution in The United States of America.” While acknowledging the importance of Palantir’s international partnerships, Karp cast the company’s mission as fundamentally American, fueled by advances in AI, semiconductors, and large language models. He described Palantir as “anomalously bullish” on every facet of U.S. life, with a particular focus on the country’s blue-collar workforce.
Story Continues
