Palantir won’t pause here. The stock just reached a new all-time high, closing at $179.54 on July 7 after breaking previous records multiple times this year. It rose another 0.8% to $180 during July 8’s trading.
That marks the stock’s year-to-date growth of 139%.
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On August 4, the AI defense software company posted second-quarter revenue of $1 billion, up 48% year-over-year and marking a milestone analysts hadn’t expected the firm to reach until the fourth quarter. Its adjusted earnings of 16 cents also topped forecasts of 14 cents.
Palantir also raised its full-year guidance to between $4.142 billion and $4.150 billion, up from a prior range of $3.89 billion to $3.90 billion.
“It has been a steep and upward climb — an ascent that is a reflection of the remarkable confluence of the arrival of language models, the chips necessary to power them, and our software infrastructure, one that allows organizations to tether the power of artificial intelligence to objects and relationships in the real world,” CEO Alex Karp wrote in a letter.
Image source: Bloomberg/Getty Images
Palantir unveils surprising news
Palantir (PLTR) is known for providing AI-driven data analytics software to the U.S. government, military, and commercial clients. The stock soared 340% in 2024 as demand for AI infrastructure surged across sectors.
In the second quarter, Palantir’s U.S. revenues jumped 68% from a year ago to $733 million, largely driven by the U.S. commercial segment, which nearly doubled to $306 million.
Related: Analyst revamps Palantir stock forecast before earnings
Its U.S. government revenues jumped 53% from the year-ago period to $426 million, despite massive spending cuts under President Donald Trump and his Department of Government Efficiency, formerly led by Elon Musk.
Palantir has recently secured a 10-year contract with the U.S. Army worth up to $10 billion. The number is more than three times Palantir's 2024 revenue of $2.87 billion, making it one of its biggest ever. It could also significantly boost the company’s Remaining Performance Obligations (RPO).
While Palantir's revenue is on fire, the company is looking to reduce its workforce.
“We’re planning to grow our revenue … while decreasing our number of people,” CEO Alex Karp recently said in an interview with CNBC. “This is a crazy, efficient revolution. The goal is to get 10x revenue and have 3,600 people. We have now 4,100.”
Karp didn’t clarify whether this would involve layoffs, according to CNBC.
Veteran fund manager unveils bold Palantir stock price target
Chris Versace, a 30-year Wall Street veteran who oversees TheStreet Pro's portfolio, has lifted his price target for Palantir to $190 from $160 after thoroughly reviewing the company’s earnings. He maintained a rating of “stockpile,” which means he suggests buying on pullbacks or successful tests of technical support levels.
Versace highlighted the company's U.S. commercial performance, citing numbers including U.S. commercial contract value to climb 222% year over year to $843 million. U.S. commercial remaining deal value (RDV) grew +145% YOY and +20% QOQ to $2.8 billion.
Related: Jim Cramer drops jaw-dropping price target on Palantir stock post-earnings
Versace pointed to strong U.S. commercial momentum, noting that contract value climbed 222% year-over-year to $843 million. The remaining deal value for the segment also saw solid gains, rising 145% from a year ago and 20% from the previous quarter to $2.8 billion.
“[These numbers] push back on the increasingly dated view that Palantir was not making as much headway in the space as it was in the public one,” Versace wrote.
“But here’s the thing — it’s not that the U.S. government revenue growth has slowed appreciably, it’s just that Palantir, like ServiceNow (NOW) and others, is benefiting from AI adoption in the enterprise.”
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Versace also highlighted Palantir’s improving efficiency, with adjusted operating margins set to reach 47% in the second half of 2025, up from 45% in the first half and around 37% a year earlier.
That growing trend suggests margins in 2026 could end up higher than the company’s current target of 46%, he said.
“With better revenue outlook and stronger margins, analysts may soon raise their 2026 earnings estimates — and possibly their price targets, too,” Versace added.
Related: Palantir's blockbuster results spark stock surge
