Palantir raises revenue outlook as AI demand powers record sales

Palantir Technologies has raised its full-year revenue forecast for the second time in 2025, underlining the company’s breakneck momentum amid strong global demand for its artificial intelligence platform. The data analytics specialist now expects to generate between 4.14 billion and 4.15 billion US dollars this year, a significant increase from the previous projection of up to 3.90 billion US dollars.

Recent financial results revealed a 48 per cent surge in second quarter revenue, surpassing the symbolic 1 billion US dollar mark. American commercial revenue soared by 93 per cent to reach 306 million dollars, while government contracts in the US rose by 53 per cent to 426 million dollars, representing more than 42 per cent of total second quarter turnover.

Chief executive Alex Karp hailed “a phenomenal quarter”, crediting progress to rapid advances in large language models, the growing power of microchips and the company’s proprietary software infrastructure. According to Karp, Palantir’s tools now allow organisations to connect artificial intelligence to real world objects and relationships with unprecedented sophistication.

Founded in 2003, Palantir has its roots in intelligence and defence, counting the CIA among its earliest clients post September 11. In recent years, the firm has been broadening its client base to include commercial sectors ranging from aviation to retail. Leading US businesses such as American Airlines, Heineken and Walgreens use Palantir’s AI to optimise workforce scheduling, shrink costly inventory and redirect logistics fleets to meet unexpected shifts in demand.

The company’s robust showing is drawing the attention of both investors and public sector clients. US government sales may soon rise further with the Army reportedly considering procurement contracts totalling up to 10 billion dollars over the next decade. Net profit for the latest quarter more than doubled year on year to 327 million dollars, while Palantir’s share price has jumped 114 per cent since the beginning of the year, closing up 4.2 per cent in afterhours trading at 16733 dollars.

Gil Luria, analyst at DA Davidson, said Palantir is delivering growth across both commercial and government markets, and is now being tapped to lead larger and more complex projects for public sector clients. As the digital transformation of both sectors accelerates, Palantir’s platform remains at the heart of how organisations translate data into actionable intelligence.