Palantir beats a quarter of $ 1 billion, but can it keep the pace?

Palantir has just beaten a billion dollar in quarterly income … and I still don’t know for sure if the market will get what will happen.

I’m Rick Orford. I have been trading since ’99, and no, I am not a financial adviser. That’s good, because I am not here to sell you a 401 (K) plan or to pitch what ETF that you don’t need. I split figures so that retail investors such as we can make smarter, faster decisions.

So here is the deal:

The commercial company of Palantir has grown in the US with 93% and even surpasses my goals.

They just have an army contract of $ 10 billion inked.

And they have just posted a 94% rule of 40 score, which means that they scale as a startup, but print like a Blue chip company.

But I look at a specific signal that hardly anyone is talking about, and it could be the key to unlock another $ 5-10 billion in growth in the coming years.

In this video I will show you exactly where that signal hides and why the Palantir can turn a defense into an Enterprise Juggernaut.

Palantir’s background

Okay, many of you already know who Palantir is – and if you do, you can skip this. But if you don’t, Palantri is an AI company that offers big data analysis, helps organizations to integrate, analyze and act large and complex data sets. They are currently one of the largest defense contractors in the US, and most of their income comes from government contracts, although Palantir has a fast -growing commercial segment and you are about to find out how fast.

Q2 report

First, Financial Q2 2025 are released and not to anyone’s surprise, she blew the expectations out of the water.

The quarterly turnover has risen by 48%year after year $ 1 billion, with the Q1 guidelines being defeated by 7%, estimates of the analysts with a huge 62.50%and my own prediction with 60%.

By splitting it per segment, the total commercial turnover grew by 47%, while government revenues rise by 49%.

Now let’s look at the American songs, because let’s be honest, the US is where the greatest customers of Palantir are. The total American turnover came to $ 733 million, or an increase of 68% years after year.

Government’s turnover increased by 49% to $ 426 million, and the commercial turnover did great, which increased 93% – my expectation of at least 60% growth reduced – to $ 306 million. This is an excellent improvement of an already impressive growth rate of 71% on an annual basis reported in the last year.

The number of American commercial customers also grew by 64% years after year, and although it is not explicitly suspected in the archives, I suspect that the efforts of the company to expand its AIPBoot camp are a large part of this growth.

For Q2, the total contract value reached $ 2.3 billion, which rose 140% year after year. Again, this is a new record for the company.

And finally, Palantir reported a diluted EPS of 13 cents, an increase of 117% compared to the 6 cents of last year.

Palantir also reported $ 6 billion in cash, cash equivalents and tradable effects, which represents a growth of around 15% from the end of the year in 2024.

Accompaniment

Due to the growth of Q2, Palantir has increased its end-of-year guidance from $ 3,902 billion on the high-end to between $ 4.142 and $ 4,150 billion, or around 6%.

They also increased the expected annual American commercial revenue growth to at least 85% or more than $ 1.3 billion.

Rule of 40

Their Q2 finance also emphasized the rule of Palantir of 40 score.

For those who are not known, the rule of 40 is a benchmark for financial performance for companies that offer software and software as a service or SaaS. It adds the company’s turnover and profit margin and if it scores above 40%, it grows at a considerable pace and is considered financially healthy.

And to no one is the company now a high score of 94%, calculated from a turnover growth of 48% and 46% profit margin, which means that it grows exceptionally well while retaining solid profitability.

For full disclosure, however, the company uses figures on an adapted basis for this. If we use GAAP values, this is a turnover of 48% plus 27% margin or a total of 75%. It is lower, yes, but no less impressive.

$ 10 billion army contract

Then let’s talk about a huge victory for Palantir.

On July 31, 2025, Palantir scored a massive fixed price, $ 10 billion contract with the US Army. And this is not just a normal deal; It is a company -wide agreement, which means that the army simplifies all existing contracts and consolidates where Palantir is already working, either directly or as a subcontractor. That $ 10 billion is spread over the next 10 years, ending in July 2035.

This deal cemented Palantir as a major long -term player in the US military intelligence and technology. If you are bullish about Palantir or, better yet, you already have shares, this is large, big news.

Performance Rundown

Now with that explosive Q2 report and recent contract profit, we let Zoom Uit and Assess the price performance of Palantir. By the way, I use Barkart for this part. If you want to follow, just scan this QR code.

So, Palantir has risen 112% so far and an impressive 549% in the last 52 weeks. It has also been a huge 1,521%in the past three years.

On August 4, it reached a record high at $ 161.40 and closed it to $ 160.66. But the good news does not stop there.

Palantir acts above $ 168 after hours, or almost 5% more.

The stock price is now speeding up to the $ 178 high target price that has been determined by analysts.

Tailwind

But is that really the limit of Palantir? Let’s see what is working for the company.

American commercial revenue growth

So, as I said in my video for making, Palantir takes significant steps in expanding its commercial AIP products through strategic partnerships with companies such as Accentuate” Amazon” Google” MicrosoftAnd Much more.

These alliances are not only brand exercises. They help Palantir integrate his platform into real work flows on a scale. That type of embedded adoption could change AIP into the standard infrastructure for operational AI in several industries.

European markets

Palantir has still not violated the European AI markets in the same way in the US. This topic was recently brought up on my Discord channel.

So if you are more positive about the company’s prospects, you can regard Europe’s slow AI acceptance as a potential growth catalyst for the future. If Palantir cracks the European Enterprise market with AIP in the same way as with American customers, that can be an unlocking of several billions of dollars.

So instead of seeing Europe as a dead zone, some long -term investors regard it as an optionality as a lever that has not yet been drawn.

Beneficiary of the current American administration

Finally, and this cannot be denied, Palantir is the clear winner in the efforts of the United States to modernize AI and to take over in his national activities. Contracts such as the Golden Dome and Maven present new potential income flows for Palantir, but more importantly, they further anchor the company in the ecosystem of the defense and the intelligence.

Headwindy

But of course it is never good to be too optimistic about something. Palantir does indeed face a few challenges, so let’s go through the biggest.

Risk

From the previous closure, Palantir trades 432 times the forward income, which means that investors pay more than 400 times what the company is expected to earn in the next 12 months. That is enormous.

Let’s look at two companies: Nvidia, the most valuable and currently the most valuable only $ 4 trillion company in the world, and Microsoft, which becomes Real Close to the big 4T. I recently discussed both companies and you can watch these videos.

Anyway, Microsoft acts with 35 times forward income, while Nvidia is 44.

That means that Palantir acts at ten to twelve times more than the two most valuable companies in the world.

Now I always say that p/e valuations do not necessarily apply to hyper growth companies.

However, as I have also sketched, the valuations of Palantir have been high for quite some time and at these levels it may not be sufficient to expectations. The company may have to beat estimates by raising broad margins and increasing guidelines every quarter to keep its share price up. And if the growth even slows down, the stock can get a sharp correction.

Tight EU regulations

I mentioned Palantir’s EU forecasts earlier in a positive light, but now let’s look at the other side of the coin.

EU AI restrictions are much tighter than those of the US, and that can be a serious headwind for Palantir. The EU AI Act, Which was officially approved in 2024 and will start in phasing for the next two years, introduces strict rules on transparency, data privacy, algorithmic accountability and the classification of “high-risk” AI systems. Given the involvement of Palantir in defense, surveillance and predictive analyzes, its software could be subject to more intense regulatory barriers in Europe than in the US.

Pronunciation

So I am generally still bullish about Palantir based on the excellent Q2 growth and recent contract profit, and I am enthusiastic about what the company has in store for the future. It would not surprise me if the share in the short term $ 190 only comes based on this recent good news.

However, I will double my monitoring efforts to move forward to see if the general momentum can keep pace with the expectations of investors.

So what is your opinion about Palantir? Do you think the AI golf and the support of the government are sufficient to justify the hype, or are we approaching the top?

Let me know your thoughts in the responses. And if you found this video useful, make sure you like it, subscribe and use notifications so that you never miss an update.