PLTR 2Q25:Eighth Straight Quarter of Growth Acceleration Highlights Palantir’s Commercial Business Momentum

It was largely in line with our estimates, and Palantir delivered another exceptionally strong quarter. It delivered its eighth consecutive quarter of accelerating growth, with quarterly revenue exceeding $1 billion for the first time. Revenue grew 48% YoY, beating the high end of guidance by 7%, second only to the beat in 4Q last year. Rule of 40 reached 94% (vs. 83% last quarter). It is still leaving room for further acceleration in both 3Q and 4Q.

US Commercial Revenue

US Commercial grew 92% YoY, well above the Street’s 75% expectation. As we previously noted, there was a buffer here, creating upside potential against sell-side models. Excluding the $5 million in SPAC-related revenue, US Commercial ex-SPAC grew 100% YoY (vs. 98% last quarter).

From a revenue-beat attribution perspective, ~60% of the upside to guidance came from US Commercial this quarter (~30% from Government, ~10% from International Commercial). This compares with 50% Government contribution last quarter.

New customer additions rebounded, with QoQ growth of +10.4% (vs. +8.2% last quarter), primarily driven by International Commercial (+8.9% in Q2 vs. +0.5% in Q1). This suggests a nascent improvement in International Commercial; however, as our prior channel expert interviews indicated, the key watchpoint remains conversion speed—how long these customers take to sign larger contracts.