Palantir Crushes $1B Sales Milestone, Soars Past Records Amid AI Surge

Palantir just hit the billion-dollar club — and Wall Street took notice.

Shares of the Denver-based AI and data analytics firm exploded Tuesday morning, jumping more than 9% after the company reported its first-ever $1 billion quarter, raised its annual forecast, and proved it’s dodging the worst of the federal belt-tightening under Trump’s Department of Government Efficiency (aka “DOGE”).

It’s the latest win in what’s been a red-hot year for Palantir, whose stock is now up more than 100% in 2025, smashing records left and right in the ongoing AI gold rush.

“This was a phenomenal quarter,” CEO Alex Karp said. “We continue to see the astonishing impact of AI leverage.”

Palantir booked $327 million in profit for Q2 — up 33% year over year — and beat analyst expectations on both earnings and revenue. A big part of that came from a 53% jump in US government sales, even as federal spending gets slashed.

At the same time, US commercial sales surged 93%, bringing in $306 million — a clear sign that Palantir’s AI-powered data tools are catching fire with businesses, not just defense contractors.

Total US revenue grew 68% year-over-year to $733 million.

“Palantir is clearly benefiting from AI industry momentum across its government and commercial customer bases,” wrote analysts at William Blair.

After blowing past expectations, Palantir raised its full-year revenue forecast to between $4.14 and $4.15 billion, up from $3.89 billion. That implies 45% annual growth, up from the 36% it originally projected.

It’s also expecting another $1 billion quarter in Q3, riding strong momentum and a $10 billion contract with the US Army.

In his usual no-filter style, Karp used the earnings call to say he wants to use AI to help “arm the working class” — meaning, give blue-collar workers the tech tools usually reserved for data scientists.

“People with less than a college education are creating a lot of value — sometimes more than those with degrees — using our product,” he said.

He also plans to engage labor unions and community leaders to help make AI more accessible across industries.

Palantir, long known for its secretive government work in intelligence and defense, is now aggressively expanding into healthcare, manufacturing, and energy, using its AI platform to help companies make better decisions with less manpower.

And it’s not just talk — Palantir has seen its US customer base grow 64% year-over-year, all while only adding about 10% more headcount. That’s a strong sign the company’s AI tools are doing the heavy lifting.

Even with all this momentum, analysts are still wary about Palantir’s sky-high valuation. It’s currently trading at 74 times projected 2026 revenue, making it the most expensive stock on the S&P 500.

“Even with bullish growth estimates, the math to justify this price is tough,” said Jefferies analyst Brent Thill.

Still, many analysts who were once skeptical are now revising their takes. Deutsche Bank even upgraded the stock from “sell” to “hold,” admitting they were “late to the party” on recognizing Palantir’s AI edge.

The Associated Press, the Hill, and Investor’s Business Daily contributed to this report.