Palantir Technologies shares are approaching the tipping point (NASDAQ: PLTR) which reported second-quarter 2025 earnings that exceeded Wall Street expectations, driven by soaring demand for its AI offerings, with performance pushing shares up 5% in post-market trading and capped a 100% year-to-date gain.
For the quarter ending June 30, the Denver-based AI and data analytics company posted adjusted earnings per share (EPS) of $0.16, surpassing the consensus estimate of $0.14. GAAP EPS hit $0.13 – well ahead of the expected $0.08.
Why Palantir Stock Is Up
Palantir Technologies shares are approaching the tipping point and their target quarterly revenue reached $1 billion, marking a 48% year-over-year (YoY) jump, beating Wall Street’s $939.5 million estimates.
In the top line the growth was driven by a 93% increase in US commercial revenue and a 53% increase in government contracts valued at $306 million and $426 million, respectively.
“We continue to see the astonishing impact of AI leverage,” said Palantir CEO Alex Karp. “Our Rule of 40 score was 94%, once again obliterating the metric. Year-over-year growth in our US business surged to 68%, and YoY growth in US commercial climbed to 93%.”
Where Will Palantir Stock Be In 5 Years
Looking ahead, Palantir forecasts third-quarter revenue between $1.08 billion and $1.09 billion—well above the expected $985 million. The data analyst giant, with billions of dollars’ worth of governmental defense projects adjusted operating profit of $493 million to $497 million and adjusted free cash flow of up to $2 billion.
Even though Palantir Technologies shares are approaching the tipping point it managed to also raise its full-year revenue outlook to $4.14–$4.15 billion, significantly above its earlier forecast of $3.89–$3.9 billion – US commercial revenue is expected to exceed $1.3 billion by year-end.
Analysts were quick to praise the results.
Investing Group Leader for Cash Flow Club,Jonathan Weber, stated that “Palantir delivered excellent business growth during the period… its performance looks highly compelling and Palantir clearly is a winner from the broad AI trend.”
Wedbush analyst Dan Ives echoed that view, stating, “The company’s marquee AIP product moat gains further traction across enterprise and federal landscapes with the AI demand wave not slowing down.”
Palantir Technologies shares are approaching the tipping point quarterly success highlights its expanding presence in the AI-powered enterprise software market and supports investor faith in its long-term prospects.
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