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Investing.com - Shares of Palantir (NASDAQ:PLTR) rose by more than 5% in premarket trading after the company lifted its annual guidance, fueled by strong demand from governments and corporations for its artificial intelligence-enhanced services.
The White House’s drive to encourage the widespread adoption of AI -- as well as the Pentagon’s move to buy more software from "non-traditional" providers -- has also powered returns at the data analytics and defense software group.
Second-quarter revenue spiked by 48% from a year ago to around $1 billion, topping Wall Street estimates, with more than 40% of the sales coming from the U.S. government. Palantir, which was co-founded by billionaire Peter Thiel, also posted adjusted earnings of $0.16 per share, exceeding expectations the three months ended on June 30.
Total (EPA:TTEF) contract value hit a record, up 140% year-over-year to $2.27 billion.
Palantir’s U.S. commercial segment surged 93% year-over-year to $306 million, while U.S. government revenue rose 53% to $426 million. Total U.S. revenue grew 68% to $733 million.
CEO Alex Karp attributed the strong performance to the “astonishing impact of AI leverage,” highlighting Palantir’s accelerating commercial momentum.
For the third quarter, revenue is now seen in a range of $1.083 billion to $1.087 billion, compared with analysts’ forecasts for revenue of $642.9 million.
Looking ahead, the company raised its guidance for full-year 2025 revenue to between $4.14 billion to $4.15 billion, with U.S. commercial revenue guidance now expected in excess of $1.302 billion, representing a growth rate of at least 85%.
The company also lifted its adjusted free cash flow guidance to between $1.8 billion and $2 billion. Adjusted income from operations is tipped to come in at $1.912 billion to $1.920 billion.
(Scott Kanowsky contributed reporting.)