To The Moon

Yesterday, one company I've been closely monitoring finally delivered the kind of earnings I've been waiting to see -  $Palantir Technologies Inc.(PLTR)$  . As someone who has followed Palantir not just for its government contracts but for its long-term AI ambitions, Q2 2025 felt like a turning point.

Many questioned whether Palantir could monetize AI at scale or transition from defense to commercial success. After this report, I think the answer is clear. Below, I break down the highlights from the latest earnings, why I believe this is a critical inflection point, and what it means for the long-term thesis.

Palantir

🔑 1. Revenue, Profit, and Free Cash Flow Surged Past Expectations

Palantir delivered $1.06 billion in revenue, a 48% YoY increase — its first-ever billion-dollar quarter.

U.S. commercial sales rose 93%, showing rapid enterprise adoption.

The company posted $327 million in net income (33% margin) and $569 million in free cash flow (57% margin).

Management guided full-year FCF to hit $1.8–2.0 billion — up from earlier expectations.

🚀 Its Rule of 40 score (Revenue Growth + FCF margin) hit 94%, a stellar mark for any software firm.

💡 Summary: Palantir has evolved from growth to growth + profitability + scalability — the trifecta for long-term tech winners.

Palantir 2025 Q2 earnings

🔥 2. AI Flywheel in Action – Ontology Is the Real Differentiator

Unlike many firms chasing hype around LLMs, Palantir is building enterprise-ready AI systems, powered by its unique ontology framework.

This layer connects data, logic, and workflows — allowing AI agents to operate in real-world business and government systems.

Clients like Lear, Fannie Mae, and U.S. hospitals use AIP to cut costs, automate logistics, and optimize operations.

Q2 saw 157 deals over $1M, including 42 deals over $10M — showing deepening client engagement.

💡 Summary: Palantir isn't just plugging in LLMs. It's embedding AI into critical operations, making it indispensable for clients.

Palantir

🇺🇸 3. U.S. Market Dominance Across Both Government & Commercial Sectors

The U.S. remains Palantir's engine room, with 68% of revenue coming from domestic clients.

The U.S. Army recently awarded Palantir a $10B contract, solidifying its status in defense AI.

On the commercial side, Palantir's“bottom-up”adoption model is paying off, with pilots evolving into full-scale rollouts.

Its lean salesforce and product-led strategy allow for capital-efficient growth.

💡 Summary: Whether its defense logistics or enterprise automation, Palantir is embedding itself across mission-critical systems in the U.S.

🧠 4. Why Palantir's Moat May Be Underestimated

Many investors still misclassify Palantir as“just another government contractor”or“AI-wrapped consultancy.”

In reality, its moat lies in the infrastructure layer of AI software — connecting models to data, people, and action.

Unlike other players that rely on brute-force compute or custom code, Palantir's ontology and Foundry/AIP stack allow rapid deployment across industries.

💡 Summary: Palantir is quietly becoming the "operating system" for applied AI. This makes it sticky, hard to displace, and increasingly valuable as enterprises adopt AI at scale.

📊 5. What This Means for Investors

Palantir is no longer a speculative growth story. It's a GAAP-profitable, cash-rich company, with real-world AI monetization.

While NVIDIA  $NVIDIA Corp(NVDA)$  dominates AI infrastructure, Palantir captures downstream value — where data meets workflows and decisions.

The company sees 10x TAM growth in U.S. alone over 5 years, especially in manufacturing, energy, and defense.

💡 Summary: If you're looking beyond chips and models and into real AI adoption, Palantir may be one of the best-positioned platforms in the market today.

PLTR CEO - Alex Karp

📌 Final Thoughts

Palantir's Q2 2025 earnings validated much more than financial performance — they confirmed that its long game is working. In a world flooded with AI startups and model builders, Palantir is focused on deployment, not demos.

This may be a rare moment where the market underestimates the power of integration, distribution, and operational utility. For long-term investors, especially those looking beyond the GPU layer, Palantir deserves serious attention.

$Palantir Technologies Inc.(PLTR)$  

Diamond hand 💎 ✋ 

As a retail investor, I focus mainly on the US and Singapore markets, combining a mix of technical trading and long-term investing strategies. I enjoy analyzing charts, spotting patterns, and making calculated moves based on both market sentiment and fundamentals. While I'm not a professional, I treat my portfolio seriously and continue to learn and grow with each trade. If you're also navigating the markets and enjoy discussing stocks, options, or market trends, feel free to follow me. Let's learn and grow together as a community.

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