Shares of Palantir Technologies (NASDAQ:PLTR) climbed over 5% in premarket trading following the company’s announcement of raised full-year guidance, propelled by robust demand from government and corporate clients for its AI-powered solutions.
The U.S. government’s push to expand artificial intelligence adoption, alongside the Pentagon’s increased purchases from “non-traditional” software vendors, has boosted growth for the data analytics and defense software firm.
Palantir posted second-quarter revenue of roughly $1 billion, a 48% increase from the prior year that beat analyst estimates, with more than 40% of sales attributed to U.S. government contracts. Adjusted earnings per share came in at $0.16, exceeding expectations for the quarter ending June 30.
The company’s total contract value soared 140% year-over-year to a record $2.27 billion.
Within the U.S. market, Palantir’s commercial segment grew 93% year-over-year to $306 million, while government revenue rose 53% to $426 million. Overall, U.S. revenue increased 68% to $733 million.
CEO Alex Karp credited the results to the “astonishing impact of AI leverage,” emphasizing the company’s accelerating momentum in commercial sectors.
Looking ahead, Palantir projects third-quarter revenue between $1.083 billion and $1.087 billion, well above analysts’ forecast of $642.9 million.
For the full year 2025, the firm now expects revenue between $4.14 billion and $4.15 billion, with U.S. commercial revenue anticipated to exceed $1.302 billion, marking at least 85% growth.
Additionally, Palantir raised its adjusted free cash flow guidance to a range of $1.8 billion to $2 billion, while adjusted operating income is forecast between $1.912 billion and $1.920 billion.
Palantir Technologies stock price
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