Palantir Technologies’ stock surged past its previous record high on Tuesday after the company reported its first-ever $1 billion sales quarter and raised its full-year forecast. Shares soared beyond $170, breaking earlier records set multiple times this year amid the global race for dominance in artificial intelligence. The stock’s prior closing high was $160.66, achieved earlier this week.
Since going public in 2020—when it posted a $1.17 billion annual loss—Palantir has rapidly turned its fortunes around. The company is now profitable, with revenue and earnings on the rise. In the second quarter alone, profits jumped 33% to $327 million.
The major revenue milestone was driven by a 53% increase in government contracts, even as federal spending has been trimmed under President Donald Trump and his Department of Government Efficiency (DOGE), which was once led by billionaire Elon Musk.
Despite the cuts, analysts Louie DiPalma and Bryce Sandberg from William Blair noted that Palantir’s U.S. government division experienced its strongest growth since Q2 of 2021. They emphasized that AI industry momentum continues to push growth across both public and private sector clients.
Commercial sales weren’t far behind, growing by a remarkable 93%. U.S. revenue overall surged 68% to $733 million.
On Monday evening, Palantir revised its full-year revenue outlook to a range of $4.14 to $4.15 billion. It also raised its U.S. commercial revenue forecast to over $1.3 billion—indicating potential growth of at least 85% in that segment.
“This was a phenomenal quarter,” said CEO Alex Karp in a statement. “We continue to see the astonishing impact of AI leverage.”
Karp expressed optimism about AI’s potential to uplift various sectors of American society. Speaking to analysts, he emphasized Palantir’s focus on empowering blue-collar workers through AI tools and training, stating that the company intends to work with labor leaders to introduce more workers to the technology.
“People with less than a college education are creating a lot of value—and sometimes more than college-educated individuals—using our platform,” Karp said.
Based in Denver, Palantir is known for its powerful software that helps governments and businesses analyze and draw insights from vast amounts of data.
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