Artificial intelligence (AI) based data analytics software company Palantir Technologies recorded an unexpected 'surprise performance' exceeding expectations in the second quarter of this year. Thanks to the growing demand for AI, quarterly revenue has surpassed $1 billion for the first time.
Palantir announced on the 4th (local time) that its revenue in the second quarter reached $1 billion (1.386 trillion won), marking a 48% increase compared to the same period last year. This figure exceeds Wall Street's forecast of $940 million. The earnings per share came in at $0.16 (221 won), surpassing Wall Street's estimate of $0.14.
Alex Karp, the CEO of Palantir, said he is feeling the 'amazing ripple effects' of AI, describing the performance as 'bombastic.' In a letter to shareholders, he explained that Palantir's growth trajectory is driven by the arrival of large language models (LLM), the chips that power them, and the alignment of their software infrastructure.
Palantir's revenue from the United States increased by 68% year-on-year to $733 million, and revenue from the institutional sector also surged to $360 million, doubling compared to the same period.
Palantir particularly benefited from President Donald Trump's government efficiency policies. Palantir's AI technology has been evaluated as contributing to productivity improvement, leading to a 53% increase in U.S. government revenue year-on-year, totaling $426 million.
Palantir evaluated that its AI platform, AIP (Artificial Intelligence Platform), has driven growth in the U.S. The company explained that the demand for AIP has increased due to partnerships formed in the second quarter with corporations such as GE Aerospace, TWG Global, and TeleTracking Technologies.
In the second quarter alone, Palantir signed 66 contracts worth at least $5 million and 42 contracts worth over $10 million. The total contract value rose 140% year-on-year to $2.27 billion.
The outlook for the future is also optimistic. Palantir has revised its revenue forecast for the year to $4.142 billion to $4.150 billion, up from the previous estimate of $3.89 billion to $3.9 billion.
Palantir's stock price has more than doubled this year. Its market capitalization has surpassed $379 billion, entering the top 20 companies in the U.S., and has placed it among the top 10 U.S. tech companies by market capitalization, surpassing Salesforce, IBM, and Cisco.
On this day, Palantir's stock closed at $160.66, up 4.14% from the previous trading day on the New York Stock Exchange. This is the highest closing price on record.