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Key Points
- Palantir’s first-half revenue surged from $1.31 billion to $1.88 billion, driven by soaring demand for its AI and data software platforms.
- Strong revenue growth and cost controls lifted net income from $241.6 million to $546.3 million in the first half of 2025.
- Palantir secured record deals, including 42 worth over $10 million, pushing total contract value up 140% year-over-year.
America’s richest Black billionaire, Alex Karp, led Palantir Technologies to a standout performance in the first half of 2025, with revenue climbing to nearly $1.9 billion, well above Wall Street’s expectations.
The surge reflects the growing influence of artificial intelligence, which continues to drive demand for the company’s software and data infrastructure across both government and commercial sectors.
AI push drives Palantir revenue surge
According to the company’s half-year results, Palantir’s revenue rose sharply from $1.31 billion in the same period last year to $1.88 billion this year.
That jump highlights how its platform—designed to help businesses and the U.S. military develop and execute AI strategies—has become a critical tool in turning advanced algorithms into practical decision-making systems.
The rapid advancement of large language models, combined with the chips that power them and Palantir’s ability to connect these systems to real-world data, has positioned the company as a key player in AI deployment.
Net income more than doubles
The revenue boost, alongside disciplined cost controls, more than doubled the company’s net income for the period—from $241.6 million to $546.3 million.
Basic earnings per share also rose from $0.11 to $0.23. A large portion of that growth came in the second quarter, prompting strong words from CEO Alex Karp.
“This was a phenomenal quarter,” Karp said. “We continue to see the astonishing impact of AI leverage. Our Rule of 40 score hit 94 percent. Year-over-year growth in our U.S. business surged to 68 percent, and our U.S. commercial growth climbed to 93 percent. We’re now guiding toward the strongest sequential revenue growth in Palantir’s history.”
Contract value hits record $2.27 billion
In Q2 alone, Palantir reported a 48 percent revenue increase—from $678.1 million to $1 billion. Adjusted EBITDA jumped 47 percent to $470.9 million.
U.S. commercial revenue soared 93 percent year-over-year and 20 percent compared to the previous quarter, reaching $306 million. U.S. government revenue also grew strongly, rising 53 percent year-over-year and 14 percent quarter-over-quarter to $426 million.
The company also saw its customer base expand, growing 43 percent year-over-year and 10 percent quarter-over-quarter. It closed 157 deals worth at least $1 million, including 66 valued at $5 million or more, and 42 above $10 million.
Altogether, Palantir locked in a record-setting $2.27 billion in total contract value for the quarter—up 140 percent from the year before.
On the back of those results, Palantir now expects third-quarter revenue to land between $1.083 billion and $1.087 billion. It also raised its full-year revenue forecast to between $4.142 billion and $4.150 billion.
Karp builds billion-dollar data empire
Alex Karp co-founded Palantir in 2003 with Peter Thiel and a small team determined to use big data to solve complex societal problems—from counterterrorism to financial fraud.
Once known for its classified contracts with U.S. intelligence agencies, the company has dramatically expanded its focus in recent years. Its AIP (Artificial Intelligence Platform) is now a cornerstone of the firm’s transformation into a broader AI and commercial analytics powerhouse.
That transformation has not only reshaped Palantir’s identity—it has also redefined Karp’s fortune. The 56-year-old CEO, the son of a Jewish mother and an African-American father, now ranks among the wealthiest tech leaders in the world with a net worth of $14.1 billion.
Palantir’s market capitalization hits $379 billion
Following its earnings release, Palantir’s stock climbed more than 4 percent on Monday, August 4, closing at $160.66. That pushed its market capitalization to $379 billion, extending its year-to-date gains to over 110 percent. Karp, who owns a 2.6 percent stake in the company, has seen the value of his holdings soar alongside the stock’s rally.
As of June 30, 2025, Palantir’s total assets had risen to $7.36 billion, up from $6.34 billion at the end of 2024. Meanwhile, its accumulated deficit narrowed from $5.18 billion to $4.64 billion, signaling not just strong growth—but an improving balance sheet as well.
