Palantir 2Q25 Earnings Comment: Another Beat and the Rally Goes On
Palantir released its earnings for the second quarter of the fiscal 2025 on August 4th after the market closed:
· 2Q25 Earnings per share: $0.16 vs $0.14 estimate (+78% y/y)
· 2Q25 Revenue: $1.00bn vs $937.7mn estimate (+47% y/y)
The numbers look great, and not only that, Palantir revised upwards the guidance for Q3 and the full fiscal 2025 respectively.
These is primarily driven by the strong growth of US revenue – 68%, with the revenue from commercial clients almost doubling.
It appears that the tailwinds for Palantir are simply too strong. On the commercial side we have a robust demand for AI-driven solutions in business. On the government side, there are the efforts for improving the efficiency within the different state departments. All this combined with the strong ability of the company to grab big contracts – for instance, the recently-secured $10 billion contract with the US Army.
Despite the great results, the company did not discuss much on competition. It would have been even better if they had given more solid evidence on whether (and how) the moment in performance can be sustained or what makes them durable long-term.
Palantir continues to be very speculative with its crazy valuation and cult-like followings. The issue is Alex Karp is happy to see this and actively fuels the hysteria with his way of speaking emphasizing how exceptional Palantir is but without giving many solid reasons to believe in the sustainability of the stock rally.
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