Pltr Day 23

**Palantir’s Financial Performance: Revenue, Profitability, and Growth Metrics**

Palantir Technologies has demonstrated robust financial performance, driven by its AI-driven data analytics platforms—Gotham, Foundry, and the Artificial Intelligence Platform (AIP)—serving government and commercial clients globally. In 2024, Palantir generated $2.87 billion in revenue, with projections for 2025 indicating continued growth, fueled by strong U.S. commercial demand and expanding international contracts. The company’s profitability has improved significantly, achieving consistent GAAP profitability since 2023, while its growth metrics, such as customer acquisition and contract values, reflect its leadership in the AI software market. Below is a detailed analysis of Palantir’s revenue, profitability, and growth metrics, supported by available data as of August 14, 2025, with insights from web sources and X sentiment.[](https://www.marketbeat.com/stocks/NASDAQ/PLTR/financials/)[](https://www.macrotrends.net/stocks/charts/PLTR/palantir-technologies/revenue)

### **Revenue**

1. **Historical Revenue Growth**:

   - **2024**: Palantir reported annual revenue of $2.866 billion, a 28.79% increase from $2.225 billion in 2023, which itself grew 16.75% from $1.906 billion in 2022. This reflects a strong upward trajectory since 2018 ($595 million).[](https://www.macrotrends.net/stocks/charts/PLTR/palantir-technologies/revenue)

   - **Q2 2025**: Quarterly revenue reached $1.004 billion, up 48% year-over-year (Y/Y) from $678 million in Q2 2024 and 14% quarter-over-quarter (Q/Q) from $884 million in Q1 2025, marking the first time Palantir surpassed $1 billion in quarterly revenue.[](https://www.investing.com/news/company-news/palantir-q2-2025-slides-revenue-tops-1b-rule-of-40-score-hits-94-93CH-4168743)[](https://deepnewz.com/company-earnings/palantir-reports-first-1-billion-quarterly-revenue-48-growth-eps-doubled-10-army-b4db5a54)

   - **Segment Breakdown**:

     - **U.S. Revenue**: Grew 68% Y/Y to $733 million in Q2 2025, with U.S. commercial revenue surging 93% Y/Y to $306 million and U.S. government revenue increasing 53% Y/Y to $426 million.[](https://www.investing.com/news/company-news/palantir-q2-2025-slides-revenue-tops-1b-rule-of-40-score-hits-94-93CH-4168743)[](https://www.cnbc.com/2025/08/04/palantir-pltr-q2-earnings-2025.html)

     - **International Revenue**: The “Rest of the World” (including Europe, Asia, and Middle East) contributed 23% of 2024 revenue ($661 million), with the UK alone accounting for $305 million (10.6%). International growth was slower at 18% Y/Y from 2022–2024.[](https://www.marketbeat.com/stocks/NASDAQ/PLTR/financials/)

2. **2025 Guidance**:

   - Palantir raised its full-year 2025 revenue guidance to $4.142–$4.150 billion, representing ~45% Y/Y growth from 2024’s $2.866 billion, up from prior guidance of $3.890–$3.902 billion.[](https://www.cnbc.com/2025/08/04/palantir-pltr-q2-earnings-2025.html)[](https://www.investopedia.com/palantir-earnings-q2-fy2025-11784457)

   - U.S. commercial revenue is expected to exceed $1.302 billion, reflecting at least 85% Y/Y growth, driven by AIP adoption.[](https://www.investing.com/news/company-news/palantir-q2-2025-slides-revenue-tops-1b-rule-of-40-score-hits-94-93CH-4168743)

   - Q3 2025 revenue is forecasted at $1.083–$1.087 billion, a 50% Y/Y increase, beating analyst estimates of $983 million.[](https://www.cnbc.com/2025/08/04/palantir-pltr-q2-earnings-2025.html)

3. **Revenue Drivers**:

   - **Commercial Growth**: The 93% Y/Y U.S. commercial revenue growth in Q2 2025 reflects rapid adoption of AIP, with clients like TeleTracking (hospital operations) and Fannie Mae (mortgage fraud detection) driving demand.[](https://www.investing.com/news/company-news/palantir-q2-2025-slides-revenue-tops-1b-rule-of-40-score-hits-94-93CH-4168743)

   - **Government Contracts**: Major deals, such as the $1.3 billion Maven Smart System and $10 billion U.S. Army software contract, bolster government revenue, with U.S. government revenue up 53% Y/Y in Q2 2025.[](https://www.cnbc.com/2025/08/04/palantir-pltr-q2-earnings-2025.html)

   - **International Expansion**: Contracts like the NHS’s £330 million Federated Data Platform and SOMPO’s $50 million deal in Japan contribute to global revenue, though growth is slower than in the U.S.[](https://www.marketbeat.com/stocks/NASDAQ/PLTR/financials/)

### **Profitability**

1. **Net Income**:

   - **Historical Trend**: Palantir achieved GAAP profitability in 2023, with net income of $217 million, reversing losses of $371 million in 2022 and $520 million in 2021. In 2024, net income rose to $468 million.[](https://www.marketbeat.com/stocks/NASDAQ/PLTR/financials/)

   - **Q2 2025**: GAAP net income reached $326.7 million (24% margin), up 144% Y/Y from $134.1 million in Q2 2024 and up from $214 million in Q1 2025. Adjusted net income was $334.4 million.[](https://www.investing.com/news/company-news/palantir-q2-2025-slides-revenue-tops-1b-rule-of-40-score-hits-94-93CH-4168743)[](https://www.cnbc.com/2025/08/04/palantir-pltr-q2-earnings-2025.html)

   - **Earnings Per Share (EPS)**: GAAP EPS was $0.13 in Q2 2025 (vs. $0.06 in Q2 2024), with adjusted EPS at $0.16, beating analyst estimates of $0.14.[](https://www.cnbc.com/2025/08/04/palantir-pltr-q2-earnings-2025.html)

2. **Operating Income**:

   - **2024**: GAAP operating income was $310.4 million (10.8% margin), up from $120 million in 2023.[](https://www.marketbeat.com/stocks/NASDAQ/PLTR/financials/)

   - **Q2 2025**: GAAP operating income reached $269.3 million (27% margin), with adjusted operating income at $464 million (46% margin), reflecting strong operational efficiency.[](https://www.investing.com/news/company-news/palantir-q2-2025-slides-revenue-tops-1b-rule-of-40-score-hits-94-93CH-4168743)

   - **Full-Year 2025 Guidance**: Adjusted operating income is projected at $1.912–$1.920 billion, up from prior guidance of $1.711–$1.723 billion.[](https://www.investing.com/news/company-news/palantir-q2-2025-slides-revenue-tops-1b-rule-of-40-score-hits-94-93CH-4168743)

3. **Profitability Metrics**:

   - **Rule of 40 Score**: Palantir’s Rule of 40 score (revenue growth + adjusted operating margin) reached 94% in Q2 2025, up from 83% in Q1 2025 and 64% in Q2 2024, positioning it as a leader among enterprise software firms.[](https://www.investing.com/news/company-news/palantir-q2-2025-slides-revenue-tops-1b-rule-of-40-score-hits-94-93CH-4168743)

   - **Gross Margin**: Gross profit was $810.8 million in Q2 2025 (80.8% margin), with FY 2024 gross profit at $2.3 billion (80.3% margin), reflecting efficient cost management.[](https://www.marketbeat.com/stocks/NASDAQ/PLTR/financials/)[](https://www.investing.com/news/company-news/palantir-q2-2025-slides-revenue-tops-1b-rule-of-40-score-hits-94-93CH-4168743)

   - **Adjusted EBITDA**: Reached $397.3 million in Q1 2025 (45% margin), indicating strong earnings before interest, taxes, depreciation, and amortization.[](https://www.businesswire.com/news/home/20250504446513/en/Palantir-Reports-Q1-2025-Revenue-Growth-of-39-YY-U.S.-Revenue-Growth-of-55-YY-Raises-FY-2025-Revenue-Guidance-to-36-YY-Growth-and-U.S.-Comm-Revenue-Guidance-to-68-YY-Crushing-Consensus-Expectations)

4. **Cost Management**:

   - Operating expenses in Q2 2025 were $541.4 million, including $243.8 million in marketing and $135 million in R&D, aligning with revenue growth but requiring monitoring to sustain margins.[](https://www.marketbeat.com/stocks/NASDAQ/PLTR/financials/)

   - CEO Alex Karp noted plans to grow revenue while reducing headcount (currently ~4,100) to ~3,600, aiming for efficiency through AI leverage, though no layoffs were specified.[](https://www.cnbc.com/2025/08/04/palantir-pltr-q2-earnings-2025.html)

### **Growth Metrics**

1. **Customer Growth**:

   - **Total Customers**: Grew 43% Y/Y to 849 in Q2 2025, with commercial customers up 48% Y/Y to 692 and U.S. commercial customers up 64% Y/Y to 485.[](https://www.investing.com/news/company-news/palantir-q2-2025-slides-revenue-tops-1b-rule-of-40-score-hits-94-93CH-4168743)

   - **AIP Bootcamps**: Added 87 net new customers in Q2 2025, converting pilots into long-term contracts, as seen with clients like Nebraska Medicine and TWG Global.[](https://www.investing.com/news/company-news/palantir-q2-2025-slides-revenue-tops-1b-rule-of-40-score-hits-94-93CH-4168743)

2. **Contract Values**:

   - **Total Contract Value (TCV)**: Q2 2025 saw $2.3 billion in TCV, up 140% Y/Y, with U.S. commercial TCV at $843 million, up 222% Y/Y.[](https://www.investing.com/news/company-news/palantir-q2-2025-slides-revenue-tops-1b-rule-of-40-score-hits-94-93CH-4168743)[](https://www.cnbc.com/2025/08/04/palantir-pltr-q2-earnings-2025.html)

   - **Remaining Deal Value (RDV)**: U.S. commercial RDV reached $2.32 billion in Q1 2025, up 127% Y/Y and 30% Q/Q, reflecting strong future revenue potential.[](https://www.businesswire.com/news/home/20250504446513/en/Palantir-Reports-Q1-2025-Revenue-Growth-of-39-YY-U.S.-Revenue-Growth-of-55-YY-Raises-FY-2025-Revenue-Guidance-to-36-YY-Growth-and-U.S.-Comm-Revenue-Guidance-to-68-YY-Crushing-Consensus-Expectations)

   - **Deal Activity**: Closed 157 deals of at least $1 million, 66 deals of $5 million+, and 42 deals of $10 million+ in Q2 2025, indicating robust demand.[](https://www.investing.com/news/company-news/palantir-q2-2025-slides-revenue-tops-1b-rule-of-40-score-hits-94-93CH-4168743)

3. **Cash Flow and Liquidity**:

   - **Cash Flow**: Operating cash flow was $539 million (54% margin) and adjusted free cash flow was $569 million (57% margin) in Q2 2025, up from $310 million in Q1 2025.[](https://www.investing.com/news/company-news/palantir-q2-2025-slides-revenue-tops-1b-rule-of-40-score-hits-94-93CH-4168743)

   - **Liquidity**: Cash, cash equivalents, and short-term U.S. Treasury securities totaled $6.0 billion in Q2 2025, with no debt, providing a strong buffer for investments.[](https://www.investing.com/news/company-news/palantir-q2-2025-slides-revenue-tops-1b-rule-of-40-score-hits-94-93CH-4168743)

   - **Capital Expenditures**: $7.6 million in Q2 2025, supporting operational capacity, though $941.5 million in investment purchases reflects aggressive capital deployment.[](https://www.marketbeat.com/stocks/NASDAQ/PLTR/financials/)

4. **Stock Performance and Valuation**:

   - **Stock Price**: As of August 5, 2025, Palantir’s stock price was $173.27, with a market cap of $411 billion (PitchBook) to $423.7 billion (Macrotrends). Shares surged 73% YTD and over 500% in the past 12 months.[](https://pitchbook.com/profiles/company/43117-84)[](https://www.macrotrends.net/stocks/charts/PLTR/palantir-technologies/revenue)

   - **Valuation Metrics**: Trades at 276x forward earnings and 41.59x price-to-sales, raising concerns about overvaluation compared to peers like Snowflake or Databricks. Morningstar’s fair value estimate is $115, suggesting a premium.[](https://www.cnbc.com/2025/08/04/palantir-pltr-q2-earnings-2025.html)[](https://www.morningstar.com/stocks/palantir-earnings-blockbuster-growth-amid-high-expectations)

   - **X Sentiment**: Posts like @amitisinvesting celebrate Palantir’s $1 billion Q2 revenue and 45% Y/Y growth with 46% margins, calling it the “fastest-growing AI software name.” However, @amitisinvesting also notes a short position by Citron’s Andrew Left, citing overvaluation despite a low 2% short float.

### **Strategic Implications**

- **AI-Driven Growth**: Palantir’s AIP and partnerships with IBM, AWS, and Bain & Company drive commercial adoption, with U.S. commercial revenue growing 93% Y/Y in Q2 2025, surpassing a $1 billion annual run rate.[](https://www.businesswire.com/news/home/20250504446513/en/Palantir-Reports-Q1-2025-Revenue-Growth-of-39-YY-U.S.-Revenue-Growth-of-55-YY-Raises-FY-2025-Revenue-Guidance-to-36-YY-Growth-and-U.S.-Comm-Revenue-Guidance-to-68-YY-Crushing-Consensus-Expectations)[](https://www.investing.com/news/company-news/palantir-q2-2025-slides-revenue-tops-1b-rule-of-40-score-hits-94-93CH-4168743)

- **Government Stability**: Long-term contracts (6.6-year average for top clients) and deals like the $10 billion U.S. Army contract ensure stable revenue, with government revenue up 49% Y/Y in Q2 2025.[](https://www.cnbc.com/2025/08/04/palantir-pltr-q2-earnings-2025.html)

- **Profitability Strength**: Achieving GAAP profitability since 2023, with a 94% Rule of 40 score and 46% adjusted operating margins, positions Palantir as a leader in operational efficiency.[](https://www.investing.com/news/company-news/palantir-q2-2025-slides-revenue-tops-1b-rule-of-40-score-hits-94-93CH-4168743)

- **Challenges**:

  - **Valuation Concerns**: High multiples (276x earnings, 41.59x sales) and Morningstar’s $115 fair value estimate suggest overvaluation risks, with potential for multiple compression if growth slows.[](https://www.morningstar.com/stocks/palantir-earnings-blockbuster-growth-amid-high-expectations)

  - **Investment Risks**: Heavy investment outflows ($941.5 million in Q2 2025) could pressure financial flexibility if returns underperform.[](https://www.marketbeat.com/stocks/NASDAQ/PLTR/financials/)

  - **Ethical and Regulatory Risks**: Privacy concerns, particularly in Europe (e.g., NHS protests), and geopolitical tensions could impact international growth, as noted in X posts like @ZukunftFair.

### **Conclusion**

Palantir’s financial performance in 2025 showcases exceptional growth, with Q2 revenue of $1.004 billion (48% Y/Y growth), full-year guidance of $4.142–$4.150 billion (45% Y/Y growth), and U.S. commercial revenue up 93% Y/Y. Profitability has improved, with GAAP net income of $326.7 million in Q2 2025 (24% margin), a 94% Rule of 40 score, and $6.0 billion in cash reserves. Growth metrics, including 849 customers (43% Y/Y growth) and $2.3 billion in TCV (140% Y/Y growth), reflect strong demand for Palantir’s AI platforms. However, its high valuation (276x earnings) and ethical concerns, echoed in X posts, pose risks to sustained momentum. Palantir’s ability to maintain efficiency, navigate regulatory challenges, and justify its valuation will be critical to leveraging its AI-driven growth trajectory.[](https://www.marketbeat.com/stocks/NASDAQ/PLTR/financials/)[](https://www.investing.com/news/company-news/palantir-q2-2025-slides-revenue-tops-1b-rule-of-40-score-hits-94-93CH-4168743)[](https://www.cnbc.com/2025/08/04/palantir-pltr-q2-earnings-2025.html)

Last 7 days to Day 30! I hope investors continue to win!