Key points:

• Palantir shares soar 15%
• Revenue, earnings jump
• Shares still deep in the red

Revenue almost doubled while US commercial segment exploded nearly 150%. Stock’s still down 30% from record, with that pre-market gain factored in.

🚀 Palantir smokes Wall Street’s targets

• Palantir shares PLTR surged more than 15% in premarket trading Tuesday after the AI software company delivered a double beat.
• That means both profit and revenue exceeded Wall Street’s forecasts, giving traders two reasons to rediscover their enthusiasm before breakfast.
• Adjusted earnings reached $0.41 per share, up from $0.16 a year earlier and comfortably above the $0.34 expected.
• Revenue climbed 93% to $1.94 billion, beating projections near $1.81 billion and continuing Palantir’s streak of accelerating growth.
• Adjusted operating margin expanded to 62% from 46% last year, also topping the 60% forecast. The metric shows how much revenue remains after operating costs, excluding selected items.

💰Commercial growth enters overdrive

• US commercial revenue rocketed 149% year over year to $764 million as businesses adopted Palantir’s AI and data platforms. After compounding, the segment has expanded roughly 380% since 2024.
• US government revenue also surged 90% to $809 million, helped by demand for defense and intelligence technology.
• Together, Palantir’s American operations generated $1.57 billion, showing that commercial adoption is catching up with the government contracts that originally defined the business.
• The results challenged fears that generative AI could replace large portions of business software. Palantir argues the opposite: companies need its platforms to connect AI models securely with their own data and operations.

🔭 Guidance rises, valuation stays lofty

• Palantir lifted its full-year revenue forecast to between $8.15 billion and $8.16 billion, up by roughly $500 million from its previous range of $7.65 billion to $7.66 billion. Management now expects annual growth of about 82%. Subtle guidance raise, this was not.
• The company also guided third-quarter revenue to roughly $2.16 billion, around 8% above Wall Street’s expectations.
• That suggests momentum is continuing rather than peaking, temporarily silencing another bearish argument that Palantir’s sales growth and margins had reached their ceiling.
• Valuation remains the unresolved issue. Even after falling roughly 30% from its record with Tuesday’s premarket bounce included, Palantir still trades at unusually rich sales and earnings multiples.
• The quarter dismantled the slowing-growth narrative. The “already expensive” debate survives for another earnings season.

Source: Tradingview