Data-mining and analytics company Palantir (NYSE:PLTR) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, with sales up 48% year on year to $1.00 billion. On top of that, next quarter’s revenue guidance ($1.09 billion at the midpoint) was surprisingly good and 10.5% above what analysts were expecting. Its non-GAAP profit of $0.16 per share was 15.6% above analysts’ consensus estimates.
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Revenue: $1.00 billion vs analyst estimates of $939.6 million (48% year-on-year growth, 6.8% beat)
Adjusted EPS: $0.16 vs analyst estimates of $0.14 (15.6% beat)
Adjusted Operating Income: $464.4 million vs analyst estimates of $404.2 million (46.3% margin, 14.9% beat)
The company lifted its revenue guidance for the full year to $4.15 billion at the midpoint from $3.90 billion, a 6.4% increase
Operating Margin: 26.8%, up from 15.5% in the same quarter last year
Free Cash Flow Margin: 56.7%, up from 41.9% in the previous quarter
Market Capitalization: $364.1 billion
“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. Year-over-year growth in our U.S. business surged to 68%, and year-over-year growth in U.S. commercial climbed to 93%. We are guiding to the highest sequential quarterly revenue growth in our company’s history, representing 50% year-over-year growth,” said Alex C. Karp, Co-Founder and Chief Executive Officer of Palantir Technologies.
Started by Peter Thiel after seeing US defence agencies struggle in the aftermath of the 2001 terrorist attacks, Palantir (NYSE:PLTR) offers software as a service platform that helps government agencies and large enterprises use data to make better decisions.
A company’s long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last three years, Palantir grew its sales at a solid 25.4% compounded annual growth rate. Its growth surpassed the average software company and shows its offerings resonate with customers, a great starting point for our analysis.
This quarter, Palantir reported magnificent year-on-year revenue growth of 48%, and its $1.00 billion of revenue beat Wall Street’s estimates by 6.8%. Company management is currently guiding for a 49.5% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 28.3% over the next 12 months, an acceleration versus the last three years. This projection is eye-popping and indicates its newer products and services will spur better top-line performance.
