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Data intelligence group Palantir boosted its 2025 outlook and said its sales jumped almost 50 per cent in the second quarter, citing the “astonishing impact of AI” for its rapid expansion.
The group said on Monday that its sales rose to $1bn for the first time in the three months to the end of June, up 48 per cent from the same period in 2024, exceeding Wall Street forecasts of $939mn.
“We continue to see the astonishing impact of AI leverage,” said chief executive Alex Karp, adding that “the growth rate of our business has accelerated radically, after years of investment on our part and derision by some”.
Palantir said it expected 2025 revenues of between $4.1bn and $4.2bn, up from a previous forecast of about $3.9bn. Second-quarter net income was $327mn, up 144 per cent from the same period last year.
Palantir reported a 53 per cent year over year increase in revenue from the US government to $426mn, as it benefited from President Donald Trump’s increased focus on national security and vow to increase defence spending. US commercial revenues almost doubled to $306mn.
“This is a once in a generation, truly anomalous quarter and we’re sorry that our haters are disappointed,” Karp said on a call with shareholders following the earnings announcement.
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Palantir, which was founded in 2003 by Karp, tech veteran Peter Thiel and others, sells artificial intelligence software to businesses and governments around the world. Its technology is used to collate and analyse data, from supply chain analysis to surveillance of military targets and identification systems for undocumented immigrants.
Last week, Palantir announced it had signed a deal with the US government worth up to $10bn over the next decade, which is one of the largest defence department software contracts.
Palantir’s shares had more than doubled since the end of last year, as of Monday’s close. The stock added nearly 4 per cent in after-hours trading in New York following the release of the results.
Analysts have raised concerns for months that Palantir shares are overvalued. They have more than doubled this year, giving it a market capitalisation of $379bn and making it one of the most valuable listed US tech companies — ahead of Salesforce, IBM and Cisco.