Summary
Palantir (PLTR) posted another blockbuster quarter in Q2 2025, beating EPS and revenue estimates while raising forward guidance. U.S. revenue soared 68% year-over-year, fueled by AI demand and government contracts. Despite these strong fundamentals, Palantir’s valuation now sits at 276× forward earnings — the highest among top tech companies. With shares hitting new all-time highs, investors may want to wait for a pullback before entering.
Market Movers
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📚 Deep Dive 📚
📊 Palantir Earnings: Another Big Win, but Pricey at These Levels
Palantir (PLTR) jumped +4% after delivering another blowout quarter that exceeded Wall Street’s expectations and raised guidance across the board.
Q2 2025 Highlights
- EPS (Adjusted): $0.16 vs. $0.14 expected
- Revenue: $1.00B vs. $940M expected
- Q3 Guidance: $1.083B–$1.087B vs. $983M expected
- Full-Year Outlook: Raised operating income & free cash flow projections
Key Business Drivers
- U.S. Revenue: +68% YoY → $733M
- U.S. Commercial Revenue: Nearly doubled YoY → $306M
- U.S. Government Revenue: +53% YoY → $426M
- Boost from Trump’s government efficiency campaign (contract cuts, layoffs, focus on high-performance vendors)
- CEO Alex Karp credits growth to the convergence of AI language models, advanced chips, and Palantir’s software infrastructure
Deal Activity & Contracts
- 66 deals worth at least $5M
- 42 deals worth at least $10M
- Contract value: +140% YoY → $2.27B
- Net income: +144% YoY → $326.7M ($0.13/share)
Valuation & Market Impact
- Market Cap: $379B → Now in the top 10 U.S. tech companies by value
- Surpassed Salesforce, IBM, and Cisco in market cap
- Shares hit a new all-time high Monday
- Valuation: 276× forward earnings (only Tesla is higher among top 20 at 177×)
GAR Capital Take 💡
We’ve loved PLTR since 2021 — it’s been one of our top 10 picks for years. The company’s government and AI positioning make it a powerhouse for the next decade.
That said… at these levels, the stock is expensive.
If you already own it, congrats — enjoy the ride.
If you’re looking to enter, patience may pay off.
We’d prefer a pullback from all-time highs before adding.
Bottom line:
✅ Fantastic growth story
✅ Strong AI & government tailwinds
⚠️ Steep valuation — wait for a better entry if you’re not already in