Key Points:
- Palantir posts $1B Q2 revenue, up 48% on AI boom
- Stock up 130% YTD with strong contract growth
- Cramer sees $200 target amid bullish outlook
Palantir Technologies has crossed a significant milestone, reporting over $1 billion in quarterly revenue for the first time in its history during Q2 2025. The company posted $1.0 billion in revenue, a 48% increase year-over-year, and adjusted earnings of $0.16 per share, beating analyst expectations of $0.14.
The company also demonstrated robust profitability with gross margins of around 82% and adjusted operating margins hitting 46%. Palantir stock surged following a Rule of 40 score of 94—a key financial benchmark that blends growth and profitability, underscoring the company’s exceptional fiscal health. Jim Cramer, host of CNBC’s Mad Money, emphasized this figure as a major indicator of the company’s strength, noting it “crushes the benchmark”.
Much of Palantir’s growth is attributed to its Artificial Intelligence Platform, which has seen widespread adoption across industries. CEO Alex Karp highlighted how AIP is transforming operations for clients by powering logistics, supply chains, and enterprise planning.
Guidance Boost Sparks Investor Confidence
Following its blockbuster quarter, Palantir Stock raised its full-year 2025 revenue forecast for the second time this year. The company now expects $4.14 billion to $4.15 billion, up from a prior range of $3.89 billion to $3.90 billion.
Commercial growth is also accelerating rapidly, with U.S. commercial revenue projected to exceed $1.3 billion, surpassing earlier projections of $1.18 billion. U.S. government revenue in Q2 alone surged 53% to $426 million, while domestic commercial revenue nearly doubled.
Investors responded with enthusiasm. Palantir stock jumped 5–8% in after-hours trading, pushing its year-to-date gains past 130% and three-year growth near 600%. The firm is now among the top-performing S&P 500 stocks in 2025.
Still, some analysts remain cautious. With a forward price-to-earnings multiple exceeding 200x, concerns over valuation persist despite the strong fundamentals. While price targets have been raised across Wall Street, some firms maintain neutral stances due to the elevated risk.
Cramer’s Bold Prediction and Karp’s Vision
Jim Cramer delivered a bold outlook on Palantir, saying the stock could reach $200 per share, roughly 24% higher than current levels. “Whether it happens tomorrow or next week, it’s going there,” he asserted on The Street.
CEO Alex Karp added cultural commentary during the earnings call, emphasizing Palantir’s Meritocracy Fellowship, which challenges traditional credential-based hiring. “Once you’re at Palantir, no one cares about the other stuff,” Karp said, positioning the company as a place where performance overrides pedigree.
CFO David Glazer confirmed the company will continue hiring aggressively to meet demand in AI and data science, even if it raises short-term expenses. The long-term goal, he said, is to further solidify Palantir’s leadership in the AI software space.
Palantir’s blowout Q2 results mark a turning point for the company, underscoring its strategic pivot to AI-driven growth. With expanding margins, rising guidance, and bullish sentiment from Wall Street influencers like Jim Cramer, the firm is now firmly positioned at the intersection of defense, enterprise tech, and AI innovation. However, sky-high valuation multiples remain a key factor to watch in the months ahead.
