Why Palantir Stock Skyrocketed 80.3% in the First Half of 2025 — and Has Kept Rising

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In the first half of 2025, the stock of Palantir (PLTR) experienced a significant surge, with an increase of approximately 1.62%. During this period, the company’s share price climbed by a substantial 80.3%, contrasting the S&P 500 index’s 5.5% growth as reported by S&P Global Market Intelligence.

In the realm of tech, I’ve been thrilled to witness Palantir’s soaring valuation in 2025! This surge can be attributed to impressive business outcomes and palpable enthusiasm about the company’s prospective growth in the artificial intelligence (AI) software domain. Over the last three years, the stock has skyrocketed approximately 1,570%, making it an exhilarating investment journey indeed!

Palantir stock crushed the market in 2025’s first half

In February, Palantir released their earnings report for the fourth quarter of the previous year, and these figures surpassed Wall Street’s already high predictions. The company reported a non-GAAP (adjusted) earnings per share of $0.14 on revenue of $828 million, which significantly exceeded analysts’ average estimate of $0.11 per share on sales of $776 million. Sales increased by 36% compared to the same period the previous year, indicating that Palantir was continuing to secure significant contracts from both public and private sector clients.

In May, Palantir revealed their Q1 results for this year, meeting Wall Street’s earnings predictions and exceeding sales expectations. The company reported adjusted earnings of $0.13 per share on sales amounting to $884 million. Analysts had anticipated per-share earnings of $0.13 on sales of $863 million. Following the release of their Q1 report, Palantir’s shares experienced a dip in trading. However, these results were robust enough to support the resumption of the rally after some initial market turbulence.

During the initial half of 2025, Palantir shares saw substantial increases in value on the stock market. The company’s worth seems to have risen due to enthusiasm about artificial intelligence companies connected with the defense sector and assumptions that the Trump administration might create beneficial circumstances for its expansion.

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What’s next for Palantir?

In the latter part of 2025, Palantir’s stock has persistently increased, with a nearly 11% surge in its share price during July’s trading sessions alone. The company anticipates its annual revenue to be within the range of $3.89 billion to $3.902 billion this year, implying a growth rate of approximately 36% if we consider the midpoint of this range. Moreover, the company expects an adjusted free cash flow of around $1.7 billion at the midpoint of its target.

Following significant increases in its stock price, Palantir is currently valued at approximately 259 times this year’s projected earnings and 91 times anticipated sales. Despite the high valuation, which could lead to significant fluctuations if growth slows, the company has been consistently delivering impressive results. Investors are optimistic that Palantir will continue to achieve substantial success in the artificial intelligence software industry.

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2025-07-17 08:44