Palantir’s Q2 Report: The High-Stakes Season of Big Bets and Bigger Valuations

by

Let’s talk about Palantir Technologies (PLTR), the stock equivalent of that wildly overenthusiastic friend who always insists they’re “so different” and then proceeds to crash your party—yet somehow, everyone still pays attention. This company, which is using AI to tell stories of military missions and business ops that are either straight out of sci-fi or a corporate Orwellian nightmare, has enjoyed a near-miraculous 480% jump in the last year alone. Yes, you read that right: 480%. It’s like betting on a horse that’s been secretly cloned. So far in 2025, it’s up almost 110%, making your average growth fund look like a sad, slow-paced turtle.

But rich stories come with high valuations, like clothes with too many zippers—impressive on the outside but suspiciously confounding underneath. Palantir’s P/E ratio is nearing 700, which, if you’re not into math, means analysts are basically betting on this company being a miracle machine, or just that they really, really believe in AI’s future. The forward P/E is still sitting at 270, just to keep the thrill alive. Investors are riding a roller coaster with no brakes, clinging to the hope that Palantir’s AI will reinvent everything from warfare to warehouse management—because who doesn’t want their next conspiracy theory to come with a profit margin?

The company’s second-quarter earnings call is scheduled for August 4, right after the closing bell, which is basically a corporate version of waiting to see if your new haircut looks as good as your Instagram filter promised. The question is: can Palantir keep its rocket ride— or will the fuel run out? If growth stalls, the bubble might just go POP, leaving investors clutching their shares like a lifebuoy during a flood. Sadly, saturated valuation doesn’t guarantee success, but it does set up quite the suspense thriller. Think of it as betting on whether a magic trick will actually work or just shockingly bad sleight of hand.

What’s fueling this hype machine—besides everyone’s suspicion that AI will save or destroy civilization

Palantir’s AI Platform (AIP)—which sounds less like a tech upgrade and more like a government agency’s secret weapon—launched in spring 2023 and has been throwing growth raves ever since. Employing generative AI, it’s basically a voice-activated butler that ingests your lengthy project briefings and shouts back insights faster than you can say “synergy.” For military folks, it’s the tactical doppelgänger of an over-caffeinated analyst, forever linking to satellite networks and predicting battlefield outcomes from a distance that would make James Bond jealous. But don’t think Palantir is just playing war games; it’s also busy turning its Gotham map into the new Excel sheet of government workflow—making bureaucrats feel like secret agents while just managing spreadsheets.

Off the corporate front, Foundry aims to do for supply chains and healthcare what Instagram did for selfies—make everything look seamless and hyper-optimized. And it’s working. First quarter’s commercial contracts inched up 33% YoY, and U.S. clients propelled that growth with a 71% revenue jump to $255 million. Government revenues, meanwhile, skyrocketed 45%, topping half a billion with a big, proud “made in USA” sticker. Cash-wise, Palantir is living the dream—$370 million in free cash flow and a staggering $5.4 billion in the bank with zero debt, which in today’s climate is basically the corporate version of a unicorn sipping a latte at an affordable coffee shop.

Loading widget...

What’s really worth watching when the curtain rises on earnings day

Despite all the shiny bright signs, let’s get real: any company sporting a P/E ratio flirting with 700 isn’t exactly playing it safe. That’s overextension akin to trying to balance on a tightrope made of spaghetti—impressive until it snaps. Still, if you’re like me and believe Palantir is a tech savior cloaked in paperclips, you probably think the valuation is just a misfit puzzle piece waiting for the bigger picture. But if this company tanks—and disappoints—those valuations could deflate faster than your inbox after a national holiday.

So here’s what I—and you, obviously—should keep an eye on:

Customer count: Palantir’s commercial clients have grown 46% in a year, and quarterly upticks sit at 9%. Big deals are a must—139 worth at least $1 million in Q1, and 31 over $10 million. That feels less like a growth story and more like a high-stakes dating app where everyone’s just trying to lock it down before the market turns.

Revenue growth: This is the biggie—the money still has to flow, and Palantir plans a second-quarter revenue target of about $935 million, maybe $938 million if we’re feeling lucky. That’s about 47% more than last year, which sounds ambitious but hey, who doesn’t love a good growth spurt? If it doesn’t materialize, expect a tongue-lashing from the stock market.

Remaining performance obligations (RPO): Think of RPO as Palantir’s promise to deliver, even if they’re taking their sweet time. End of Q1, RPO was $1.9 billion, and it’s been steadily climbing. Anything below $2.05 billion is a warning, but if they breach $2.15 billion, well, that’s just showing off. The company’s backlog is kind of like the idea that everything is fine until it’s not.

Quarter Total RPO
Q1 2023 $936 million
Q2 2023 $968 million
Q3 2023 $988 million
Q4 2023 $1.24 billion
Q1 2024 $1.3 billion
Q2 2024 $1.37 billion
Q3 2024 $1.57 billion
Q4 2024 $1.73 billion
Q1 2025 $1.9 billion

How to play Palantir’s rollercoaster today (spoiler: cautiously)

I love Palantir more than my morning coffee, but I’m not rushing to add more shares before the earnings hype bubble bursts. My advice: go slow and steady—think dollar-cost averaging—so you’re not left crying over an unexpected drop while celebrating a potential spike. This stock isn’t for the faint of heart or for those with a short recalibration period; it’s for the brave, or at least the ones who’ve already bought in and refuse to look away. Regardless of the results, I’m holding onto my shares because I believe that Palantir—warts, valuation, and all—is still on the leaderboard of tomorrow’s tech giants.

Read More

2025-08-02 19:01