Palantir’s AI growth story
Palantir’s second-quarter results showed why investors have been prepared to pay such a premium for the stock.
Revenue rose 93% year-on-year to $1.935 billion in the three months to the end of June, while US revenue surged 115% to $1.573 billion. Within that, US commercial revenue increased an extraordinary 149% to $764 million, while US government revenue climbed 90% to $809 million.
The company also closed 220 deals worth at least $1 million during the quarter, including 73 worth at least $10 million. Total contract value rose 49% to $3.37 billion, while US commercial remaining deal value jumped 124% to $6.24 billion.
That combination of accelerating commercial adoption and continuing government demand is central to the Palantir investment case. The company is increasingly positioning AIP as a platform for deploying AI inside organisations rather than simply as another data-analysis product.
Profitability has also been unusually strong. GAAP operating income reached $912 million, equivalent to a 47% margin, while adjusted operating income was $1.19 billion, representing a 62% margin. Adjusted free cash flow was $1.22 billion, a 63% margin.