By Britney Nguyen
Quarterly revenue surpassed $1 billion for the first time and accelerated for the eighth quarter in a row
Shares of Palantir Technologies Inc. rose 4.6% in after-hours trading on Monday after the company’s second-quarter earnings results crushed Wall Street’s expectations – with management projecting even bigger growth ahead.
The company (PLTR) reported June-quarter revenue of $1 billion – up 48% from the previous year, and the first time Palantir’s quarterly revenue has surpassed that mark. That marked the eighth quarter in a row that overall revenue accelerated, and Palantir expects that trend to continue, with its third-quarter guidance implying the potential for 50% growth.
“We continue to see the astonishing impact of AI leverage,” Palantir Chief Executive Alex Karp said in a statement. Speaking with MarketWatch, he called the latest numbers “bombastic.”
U.S. commercial revenue jumped 93% from the previous year to $306 million, while U.S. government revenue grew 53% to $426 million. Overall U.S. revenue was up 68% to $733 million.
“Our numbers show unyielding demand that every part of our business is organically firing on each cylinder, producing numbers that, from my perspective, have never been seen in enterprise software,” Karp told MarketWatch.
The company’s revenue growth was mostly driven by its U.S. business and demand for its artificial-intelligence platform, or AIP, Palantir Chief Revenue Officer Ryan Taylor said. In the June quarter, the company saw momentum from its partnerships with TeleTracking Technologies, TWG Global and GE Aerospace, Taylor added.
From discussions with enterprise customers, Taylor said the company is “seeing very concrete, tangible impacts delivered through AIP.” He said that Citibank is now able to do customer onboarding tasks in seconds that once took days, while Fannie Mae is using Palantir’s software to find instances of mortgage fraud.
The company attributes its success to its Ontology technology, which allows its software platform users to organize and map out data to make decisions. Taylor said that while large-language models are powerful, they “fall flat on basic human understanding,” which is why he thinks companies are turning to Palantir’s software to get the most out of LLMs.
The robust AI demand underpins the company’s expectation for $1.083 billion to $1.087 billion in third-quarter revenue, which is well above the FactSet consensus of $982 million.
Palantir Chief Technology Officer David Glazer told MarketWatch that the company has also applied the AIP product to its own business, driving efficiency gains in the past two years. Palantir has seen 88% growth in revenue during that time while growing headcount by just 12%.
In the latest quarter, Palantir posted adjusted earnings of 16 cents a share, whereas analysts were looking for 14 cents a share. The company improved its score on the Rule of 40 – which adds a company’s revenue growth rate plus its profit margin – to 94 in the second quarter from 83 in the first.
Though the company is pursuing opportunities in the Middle East and Asia, the U.S. continues to be the strong point, Glazer said, pointing out that the U.S. segment makes up about 73% of Palantir’s total business. Palantir just posted 68% revenue growth in its U.S. business, Glazer said, “so while there are pockets of opportunity internationally,” including in continental Europe, the growth isn’t at the same pace as it is in the U.S.
For the full year, the company raised its revenue guidance to between $4.142 billion and $4.150 billion. Palantir was previously targeting $3.890 to $3.902 billion.
Palantir also lifted its U.S. commercial revenue guidance to upwards of $1.302 billion, which would translate to 85% growth. It previously was looking for more than $1.178 billion, which would have equated to at least 68% growth.
-Britney Nguyen
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08-04-25 2017ET
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