CFO David Glazer said Q2 government revenue growth of 53% was driven by “continued execution in existing programs and new awards reflecting the growing demand for AI and our government software offerings.”
Palantir Technologies (PLTR) stock was the top-trending equity ticker on Stocktwits early Tuesday, as retail traders savored the artificial intelligence (AI)-powered data analytics company’s quarterly results.
On the platform, retail sentiment toward Palantir stock turned to ‘extremely bullish’ (80/100) by early Tuesday from ‘bearish’ a day ago. The reversal in sentiment was accompanied by an increase in message volume to ‘extremely high’ levels.
The 24-hour message volume increased by nearly 1,800% on Monday as retailers discussed the company’s quarterly results.
Commenting on the results, Wedbush analyst Daniel Ives said, “Messi of AI” delivered strong results, blowing away buy-side expectations.
The analyst noted that the beat was across the board, with revenue for the second quarter of 2025 topping the $1 trillion mark for the first time.
According to the analyst, Palantir’s “marquee AIP product moat gains further traction across enterprise and federal landscapes with the AI demand wave not slowing down.”
The AIP is Palantir’s in-house AI platform.
CNBC Mad Money host Jim Cramer has already called for a rally to the $200 psychological barrier. “Palantir, when it was $50 I said it would go to $100, when it was at $100 I said it would go to $150, and now that it has topped $150, its next stop is $200,” he said in a post on X. “As usual Palantir quarter is a mixture of Camus (ontology) and Caymus (celebration). Amazing Rule of 40 score.. Re-defining growth,” he added.
Key highlights from Palantir’s results are as follows:
- Adjusted earnings per share (EPS) $0.16 versus the Fiscal.ai-compiled $0.14
- Revenue, up 48% YoY and 14% QoQ, beating the $939.47 million consensus
- U.S. commercial nearly doubled YoY to $306 million
- U.S. government revenue rose 53% to $426 million
- Adjusted income from operations of $464 million versus guidance of $401 million-$405 million
Co-founder and CEO Alex Karp said, “This was a phenomenal quarter. We continue to see the astonishing impact of AI leverage. Our Rule of 40 score was 94%, once again obliterating the metric.”
Speaking on the earnings call, CFO David Glazer said the second-quarter government revenue growth of 53% was driven by “continued execution in existing programs and new awards reflecting the growing demand for AI and our government software offerings,” according to a transcript provided by Koyfin.
Among key operational metrics, the company said it closed 157 deals of at $1 million value, and 66 deals of at least $5 million value, and 42 deals of at least $10 million value, during the quarter. Its customer count climbed 43% YoY and 10% sequentially.
The total contract value was a record $2.27 billion, up 140% YoY.
Palantir guided to third-quarter adjusted income from operations of $493 million to $497 million and revenue of $1.083 billion to $1.087 billion. Analysts, on average, expect the company to report revenue of $981.99 million for the quarter.
The company has increased its full-year guidance yet again, raising it to a range of $4.142 billion to $4.150 billion, up from $3.89 billion to $3.90 billion. The company also increased its U.S. commercial revenue guidance to more than $1.302 million and its adjusted income from operations outlook to $1.912 billion to $1.920 billion.
A bullish watcher noted that a golden cross technical formation has occurred and wondered whether the next target would be $174.
Another user called Palantir the “next Microsoft.”
Palantir stock has gained over 112% year-to-date. In Tuesday’s early premarket session, the stock added 4.90% to $168.53, following a 4.14% rally during Monday. The stock has traded in a 52-week range of $25.57 to $161.40.
The sell-side, however, is not very optimistic. Analysts’ average price target for Palantir stock is $113.54, according to Koyfin. This implies roughly 30% downside from Monday’s closing level.
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