Palantir Reports Strong Q2 Earnings
Palantir Technologies Inc. (PLTR) reported a significant year-over-year revenue increase of 93% for Q2, totaling $525 million, while adjusted earnings-per-share reached $0.41, surpassing analyst expectations of $0.35. The company’s government revenue surged by 90%, contributing approximately 55% of overall revenue, with commercial revenue up 149% year-over-year.
Key Financial Metrics
Palantir’s Rule of 40 score is currently 155, indicating strong financial health. The company also reported a free cash flow (FCF) for Q2 that exceeded the total for the first half of 2025, underscoring its profitability amid rising government spending. Analyst estimates predict an increase in annual EPS from around $0.69 in 2025 to over $2 in 2027.
Valuation Improvements
Palantir’s share price has seen a valuation shift, with its PEG ratio dropping from 9x to 3 since mid-2025, enhancing its investment appeal. With ongoing earnings beats, Palantir’s growth trajectory continues to position it as a key player in both commercial and defense sectors.
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