Palantir's a position you have to own but at a smaller size, says Clockwise Capital's James Cakmak
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Yahoo
33 minutes ago
- Yahoo
Palantir stock surges after company reports first billion-dollar quarter
Palantir (PLTR) stock surged in after-hours trading on Monday after the company reported second quarter results that beat analyst estimates across the board as its revenue topped $1 billion in a quarter for the first time. "The growth rate of our business has accelerated radically," Palantir CEO Alex Karp said. "Yet we see no reason to pause, to relent, here." Shares in the defense technology giant were up more than 4% in after-hours trade on Monday. In its second quarter, Palantir posted earnings per share of $0.16, beating consensus estimates of $0.14 and up 77% from the same quarter last year. Revenue came in at $1.004 billion, Palantir's first quarter surpassing the billion-dollar mark on a quarterly basis. The company's top line also beat analyst forecasts for $939.25 billion and was up 48% year over year. US commercial revenue came in at $306 million, growing 93% year over year, while US government revenue for the quarter was $426 million, up 53% from the same quarter last year. Analysts had estimated that sales for the two sectors would come in at $273 million and $391 million, respectively. In May, shares of Palantir fell 12% the day after its first quarter results as investors scrutinized the company's valuation and declining sales in its international commercial business, which sells software to businesses abroad, even as its first quarter revenue blew past Wall Street's forecasts. On Monday, Palantir raised its 2025 full-year revenue guidance to $4.14-$4.15 billion, above Wall Street's estimate of $3.91 billion. The company also noted in its report that it closed $2.27 billion of total contract value in the quarter, up 140% from the same quarter last year. Karp attributed much of the company's success to Palantir's integration of AI technology into its offerings. "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," Karp said in a letter to shareholders, "one that allows organizations to tether the power of artificial intelligence to objects and relationships in the real world." "For a startup, even one only a thousandth of our size, this growth rate would be striking, the talk of the town," Karp said. "For a business of our scale, however, it is, we continue to believe, nearly without precedent or comparison." "This was a phenomenal quarter ... We are guiding to the highest sequential quarterly revenue growth in our company's history," Karp said. In another boon to the company's US government business, Palantir announced last week that it signed a deal rolling up contracts with the US Army for a value of up to $10 billion over the next decade. Wedbush analyst Dan Ives, a noted Palantir bull, said the deal is 'one of the largest ever DOD [Department of Defense] software contracts in US history.' "Palantir remains one of our top tech names to own in 2025 and this deal represents another opportunity for PLTR to capitalize on while continuing to generate unprecedented traction for its entire portfolio across the federal and commercial landscapes," Ives wrote in a note to investors on Monday after the company published its earnings. Palantir stock is up more than 110% this year against the S&P 500's 7.4% gain. Some on Wall Street have concerns about Palantir's valuation, and shares currently trade at levels 24 times the historical market multiple of the S&P 500 (^GSPC). 'We cannot rationalize why Palantir is the most expensive name in our software coverage,' RBC Capital Markets analyst Rishi Jaluria wrote in a note to clients before Palantir published its Q2 earnings. 'Absent a substantial beat-and-raise quarter elevating the [near term] growth trajectory, valuation seems unsustainable.' Palantir delivered beat-and-raise results Monday. Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Follow him on X at @byjakeconley or email him at
Yahoo
an hour ago
- Yahoo
Palantir Technologies Inc (PLTR) Q2 2025 Earnings Call Highlights: Record Revenue and Strategic ...
Total Revenue: Surpassed $1 billion in Q2, with 48% year-over-year growth. US Business Revenue: Grew 68% year over year and 17% sequentially, representing 73% of total company revenue. US Commercial Revenue: Increased 93% year over year and 20% sequentially, comprising 31% of Q2 revenue. US Government Revenue: Grew 53% year over year and 14% sequentially. Adjusted Operating Margin: Expanded to 46%, exceeding prior guidance by nearly 300 basis points. Adjusted Free Cash Flow: $569 million, representing a margin of 57%. Net Dollar Retention: Increased to 128%, up 400 basis points from last quarter. Customer Count: Grew 43% year over year and 10% sequentially to 849 customers. Top 20 Customers Revenue: Increased 30% year over year to $75 million per customer. GAAP Net Income: $327 million, representing a 33% margin. GAAP Earnings Per Share: $0.13. Adjusted Earnings Per Share: $0.16. Cash and Equivalents: Ended the quarter with $6 billion. Q3 2025 Revenue Guidance: Between $1.083 billion and $1.087 billion. Full-Year 2025 Revenue Guidance: Raised to between $4.142 billion and $4.150 billion. Warning! GuruFocus has detected 6 Warning Signs with SPG. Release Date: August 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Palantir Technologies Inc (NASDAQ:PLTR) achieved a record-breaking quarter with over $1 billion in quarterly revenue for the first time, marking a 48% year-over-year growth. The US commercial sector led with a 93% year-over-year revenue growth, significantly outpacing the US government revenue growth of 53%. The company reported its highest-ever TCV and ACV, with $2.3 billion in TCV and $684 million in ACV, closing 157 deals worth $1 million or more. Palantir Technologies Inc (NASDAQ:PLTR) demonstrated strong cash flow with a second-quarter adjusted free cash flow of $569 million, representing a margin of 57%. The company raised its full-year 2025 revenue guidance midpoint to $4.146 billion, representing a 45% year-over-year growth rate, and increased its US commercial revenue guidance to an excess of $1.302 billion, representing at least 85% growth. Negative Points International commercial revenue declined by 3% year over year, indicating challenges in expanding outside the US market. The company anticipates a significant ramp in expenses in the third quarter due to the seasonality of new hire starts, which could impact profitability. Revenue from strategic commercial contracts is expected to decrease, with third-quarter 2025 revenue from these contracts anticipated to be between $2 million to $4 million, compared to $10 million in the third quarter of 2024. Despite strong growth, the company faces challenges in maintaining its growth trajectory without a traditional direct sales force, relying heavily on customer referrals. There is a potential risk of over-reliance on the US market, as the US business now represents 73% of total company revenue, which could be a vulnerability if market conditions change. Q & A Highlights Q: Beyond just using LLMs, how is Palantir making AI more useful for frontline workers and decision makers, not just data scientists? A: Shyam Sankar, Chief Technology Officer, explained that AI is empowering frontline workers by giving them "superpowers." For example, nurses have more time with patients, and factory workers can focus more on production rather than administrative tasks. Palantir is also helping companies like Panasonic Energy train workers from diverse backgrounds, such as those with experience in casinos, to manage high-end technology. This approach is expanding job opportunities and enhancing creativity and agency among workers. Q: You're achieving massive success without a direct sales force. Are you planning to change this approach? A: Alexander Karp, CEO, stated that Palantir's strategy focuses on value creation rather than traditional sales methods. The company relies on current customers to advocate for its products, emphasizing the effectiveness of their solutions. While they have a small, nimble sales force, the primary driver of growth is the credibility and value their products deliver, which leads to organic expansion through customer referrals. Q: What excites you about the AI action plan from the White House, and how do you ensure you attract and retain the right talent? A: Shyam Sankar highlighted that the AI action plan removes barriers, allowing for more empirical AI development. The focus is on implementation and creating an American tech stack. Regarding talent, Palantir offers access to meaningful problems and rapid involvement in impactful projects, which attracts and retains top talent. The company provides a unique credential that values agency and problem-solving over traditional educational backgrounds. Q: How does Palantir plan to maintain its competitive edge in talent acquisition amid the current battle for software talent? A: Alexander Karp emphasized that Palantir offers a unique environment where employees can quickly work on high-impact projects. The company values diverse backgrounds and provides a new credential that is independent of traditional educational or social status. This approach, combined with the opportunity to work on significant problems, helps Palantir attract and retain elite talent. Q: How does Palantir's approach to AI differ from traditional methods, and what impact does this have on its growth? A: Shyam Sankar explained that Palantir's AI approach focuses on integrating LLMs with workflow and software through Ontology, enabling faster value realization. This unique integration accelerates growth by allowing customers to build their software on Palantir's platform, leading to significant competitive advantages and market differentiation. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
2 hours ago
- CNBC
CNBC Daily Open: Markets appear to have gotten over the July jobs report — unlike Trump
The U.S. Bureau of Labor Statistics' July's jobs report revised previous months' figures down so dramatically that U.S. President Donald Trump on Monday called it "RIGGED" and "CONCOCTED." Markets, however, seem to have shrugged off their worries for now — U.S. stocks rebounded Monday from the sell-off on Friday after the report was released. But the move could be more of an instinctive reflex than a reflection of what's really driving markets. "Today is sort of a bounce-back day," said Sam Stovall, chief investment strategist at CFRA Research. "Stocks tend to pop after a drop, so that's what's happening." "We have to wait and see what happens tomorrow, because there could be a possibility that investors think, 'You know what, we really need to take some money off the table to digest some of these gains,'" he added. Trump's new tariffs come into force on Aug. 7, so there's a possibility investors could seize this opportunity, when markets have recovered slightly from Friday's losses, to take profit first — and before any further slowdown, as suggested by July's jobs report, is potentially "rigged" and strikes the U.S. economy. Trump will 'substantially' raise tariffs on India. The South Asian country's oil purchases from Russia is the cause behind Trump's threat. In response, India said it was being "targeted" by the U.S. and EU, and criticized them as "indulging in trade with Russia." The EU will suspend its planned U.S. tariffs for six months. The countermeasures, which would have taken effect on Aug. 7, were delayed to allow the bloc to "further negotiate" with the U.S. and "finalise a Joint Statement" on their trade deal. U.S. stocks rebound from Friday's losses. Major U.S. indexes rose Monday, with the S&P 500 snapping a four-day losing streak. Asia-Pacific markets traded higher Tuesday, though India's Nifty 50 fell as it began trading for the day. Palantir's quarterly revenue exceeds $1 billion. Wall Street had expected the software provider to hit that milestone only in the fourth quarter of the year. But a 48% year-over-year jump in second-quarter revenue helped Palantir beat forecasts. [PRO] The 'Magnificent Seven' are powering earnings growth. Year on year, Mag 7 earnings have increased by 26%. The other S&P 500 companies posted a combined 4% growth — a disparity that could be problematic for investors, according to an analyst. How an obscure SEC proposal could boost listings on European stock exchanges The Securities and Exchange Commission is in the early stages of a proposal to tighten the rules for foreign companies that trade on U.S. exchanges. It's a move that could inadvertently prompt dozens of stocks to seek a secondary listing in London or another major financial center. The plan targets the definition of a "Foreign Private Issuer." One of the key changes being floated would require FPIs to have an active listing on a "major" non-U.S. exchange to qualify for exemptions from some regulatory requirements.
