Palantir stock pops 8% after blowout quarter driven by AI, efficiency demand
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Palantir shares popped more than 8% after the software analytics provider lifted its full-year outlook, benefitting from ongoing AI tailwinds.
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August 5, 2025
08:03 PM
CNBC
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In this articlePLTR your favorite stocksCREATE FREE ACCOUNTwatch now2:2502:25Palantir reports $1 billion in revenue for the first timeClosing BellPalantir stock popped nearly 8% Tuesday after the software analytics vider lifted its full-year outlook, boosted by the artificial intelligence wave.CEO Alex Karp called the earnings results a "once in a generation, truly anomalous quarter" during an earnings call with analysts."We're very ud and we're sorry that our haters are disappointed, but there are many more quarters to be disappointed, and we're working on that too," he added.U.S. revenues grew 68% year over year $733 million, while U.S. commercial revenues nearly doubled to $306 million.Palantir's U.S. government revenues rose 53% from the year-ago period to $426 million as the company continues to benefit from President Donald Trump's focus on efficiency.Read more CNBC newsNvidia's set to regain some China access
But it still faces eroding AI chip market Ethereum turns 10: From scrappy experiment to Wall Street's invisible backboneGoogle has dropped more than 50 DEI-related organizations from one of its funding listsAmazon stock sinks after earnings: Here are the key takeawaysThe company's revenues grew 48% and topped $1 billion in quarterly revenue for the first time ever
That surpassed the $940 million in revenues forecast by analysts polled by LSEG."'I've been cautioned to be a little modest our bombastic numbers, but honestly, there's no authentic way to be anything but have enormous pride and gratefulness these extraordinary numbers," he said.Adjusted earnings came in at 16 cents per and ahead of the 14-cent-per- estimate
Net income jumped 144% to $326.7 million, or 13 cents per
That's up from $134.1 million, or 6 cents per a year ago.Palantir also upped its full-year guidance.The company now expects revenues to range between $4.142 billion and $4.150 billion
That's up from its previous forecast calling for $3.89 billion to $3.90 billion.Palantir s have soared more than 120% this year and the company's market cap topped $400 billion due to AI tailwinds and a bet on its contracts with the government.Last week, the company joined the list of 20 most valuable U.S. companies after joining the top 10 U.S. firms in May.However, investors are paying a hefty multiple for a company that makes a fraction of revenue relative to many of its peers. s currently trade 277 times forward earnings.Analysts have raised concerns the company's growth and valuation.Jefferies analyst Brent Thill maintained an underperform rating ing the results, citing a "disconnected between valuation and achievable growth.""While PLTR carries a rich valuation premium and remains a high-risk investment, the one-of-a-kind growth [plus] margin model puts it into a unique category of one that warrants a premium, in our view," wrote Piper Sandler's Brent Bracelin, who is overweight on s.WATCH: Palantir reports $1 billion in revenue for the first timeStock Chart IconStock chart iconPalantir YTD stock chart.
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