Palantir Technologies (PLTR) Is Up 15.1% After Landmark US Army Deal and Billion Dollar Quarter – What’s Changed

• Palantir Technologies reported second quarter 2025 results with revenue exceeding US$1 billion for the first time, driven by strong demand for its AI platforms and major government contracts, including a newly secured US$10 billion agreement with the U.S. Army.
• The company also raised its full-year revenue guidance and highlighted exceptional growth in its U.S. commercial business, reflecting heightened confidence in both public and private sector momentum.
• We'll explore how the landmark U.S. Army contract could reshape Palantir's investment narrative as AI adoption accelerates across key sectors.

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What Is Palantir Technologies' Investment Narrative?

For investors to make a case for owning Palantir, belief in the company’s continued leadership in AI-driven data platforms and its ability to capture expanding public and private sector budgets is crucial. The latest results and guidance mark a turning point: Palantir notched its first US$1 billion quarter on brisk demand and clinched a US$10 billion Army deal, showing that AI adoption is advancing across key verticals. Near term, these wins supercharge growth catalysts, with raised guidance signaling that recent momentum is translating to stronger financials, especially in U.S. commercial operations. Still, with enormous expectations already reflected in a premium valuation, Palantir faces heightened risk: any slowdown in customer spending or budget tightening, particularly by government clients, could weigh heavily on performance. This latest earnings and contract news seem materially positive, but also raise the stakes as the company enters a challenging growth phase.

But on the flip side, Palantir’s premium price means even small disappointments could spark sharp corrections. Palantir Technologies' shares are on the way up, but could they be overextended? Uncover how much higher they are than fair value.

Exploring Other Perspectives

The Simply Wall St Community’s 135 user-generated fair value estimates for Palantir span US$50 to US$440 a share, with many at both ends of the spectrum. With recent results lifting growth expectations, but valuation still a talking point, these contrasting views show just how much debate surrounds Palantir’s future, and why it’s worth considering several opinions before deciding what comes next.

Explore 135 other fair value estimates on Palantir Technologies - why the stock might be worth over 2x more than the current price!

Build Your Own Palantir Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Palantir Technologies research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Palantir Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Palantir Technologies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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