# *Critical* Palantir Earnings LIVE

Source: https://www.youtube.com/watch?v=TmQFNYak9e0
Recap page: https://rapidrecap.app/video/TmQFNYak9e0
Generated: 2025-11-11T05:33:17.876+00:00

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## Quick Overview

Palantir's Q2 2025 earnings report was phenomenal, featuring 93% Y/Y growth in U.S. Commercial Revenue and a 48% Y/Y growth in overall Revenue, leading to a stock surge and strong operating leverage as demonstrated by expanding margins and significant cash flow, despite some analysts remaining skeptical about the high valuation.

**Key Points:**
- Palantir reported a 93% year-over-year (Y/Y) growth in U.S. Commercial Revenue and 48% Y/Y growth overall in Q2 2025, crushing consensus expectations.
- The company's Rule of 40 score reached 94%, driven by U.S. commercial growth surging to 88% Y/Y and overall growth climbing to 80% Y/Y.
- Adjusted EPS for the quarter was $0.13, beating the consensus estimate of $0.10, and the company guided for 50% annualized EPS growth over the next four years, suggesting a PEG ratio around 3.67, which the presenter considered fair value.
- Operating margin expanded significantly to 26.8%, up from 22% the prior year, showcasing strong operating leverage.
- The company reported closing 204 deals over $1 million (totaling $91 million) and a record-setting $2.27 billion in Total Contract Value (TCV) for the quarter.
- The presenter noted concerns about high valuation (PEG of 6) but ultimately found the figures, especially the accelerating revenue growth and operating leverage, highly impressive.
- Cash flow from operations was $848.51 million, and the company ended the quarter with $9.5 billion in cash, cash equivalents, and short-term U.S. Treasury securities.

![Screenshot at 00:05: Palantir's stock chart showing a significant upward trend leading into the earnings announcement, which the analyst uses as context for the market reaction.](https://ss.rapidrecap.app/screens/TmQFNYak9e0/00-00-05.png)

**Context:** The video features a financial analyst reviewing Palantir Technologies Inc.'s (PLTR) Q2 2025 earnings report, contrasting the company's strong performance metrics—particularly in AI-driven commercial revenue growth—against market skepticism and high valuation metrics like the PEG ratio. The analyst uses the official earnings release and presentation slides to support his positive assessment of the company's financial health and future guidance.

## Detailed Analysis

The analyst positively analyzes Palantir's Q2 2025 earnings, highlighting multiple areas of strength that justify the stock's high valuation despite some skepticism. Key highlights include U.S. Commercial Revenue growth of 93% Y/Y and overall revenue growth of 48% Y/Y, leading to a Rule of 40 score of 94%. The GAAP EPS of $0.13 beat expectations of $0.10. The company raised its FY 2025 revenue guidance to 85% Y/Y. The analyst calculated that even with a high assumed 50% annualized EPS growth over the next four years, the stock is still trading at a PEG ratio of 3.67, suggesting fair value. Furthermore, operating margin increased to 26.8% (up from 22% last year), indicating strong operating leverage. The analyst noted 204 deals over $1 million ($91 million total) and strong cash flow from operations ($848.51 million for the six months ended June 30, 2025). The presenter also pointed out the rapid acceleration in revenue growth from Q2 to Q3 (31% growth Q/Q in Q3 vs. Q2) and the solid cash position of $9.5 billion.

### PLTR Q2 2025 Earnings Highlights

- U.S. Revenue grew 58% Y/Y and 17% Q/Q to $807 million
- Commercial Revenue grew 93% Y/Y and 30% Q/Q to $306 million
- Rule of 40 score reached 94%
- GAAP EPS $0.13 (beat $0.10 est.)

### Guidance & Future Outlook

- Raised FY 2025 Revenue Guidance to 85% Y/Y
- Guided Q3 Revenue to 50% Y/Y
- Projected 50% annualized EPS growth over next 4 years (implying PEG of 3.67)

### Operational Efficiency

- Operating Margin expanded to 26.8% (up from 22% YoY)
- Sales & Marketing grew 24% YoY
- G&A grew 16% YoY (suggesting scaling)
- Commercial Revenue grew 121% YOY

### Deal Metrics

- Closed 204 deals over $1M ($91M total)
- Record TCV of $2.27 Billion (up 140% YoY)

### Financial Health (Balance Sheet/Cash Flow)

- Ended Q3 2025 with $9.4B in cash/marketables (vs $6.4B liabilities outside deferred)
- Net cash provided by operating activities was $848.51M for the six months ended June 30, 2025.

![Screenshot at 00:05: Palantir stock chart showing strong upward momentum leading into earnings.](https://ss.rapidrecap.app/screens/TmQFNYak9e0/00-00-05.png)
![Screenshot at 00:04: The analyst displaying excitement over the initial stock reaction following the earnings announcement.](https://ss.rapidrecap.app/screens/TmQFNYak9e0/00-00-04.png)
![Screenshot at 00:18: A screen capture showing the reported Q2 2025 Highlights, detailing revenue growth figures.](https://ss.rapidrecap.app/screens/TmQFNYak9e0/00-00-18.png)
![Screenshot at 00:36: The analyst discussing the reported figures, emphasizing the strong growth rates.](https://ss.rapidrecap.app/screens/TmQFNYak9e0/00-00-36.png)
![Screenshot at 01:47: The analyst navigating to the official investor relations page to verify data.](https://ss.rapidrecap.app/screens/TmQFNYak9e0/00-01-47.png)
![Screenshot at 03:03: The analyst manually inputting data into a note-taking interface while reviewing earnings documents.](https://ss.rapidrecap.app/screens/TmQFNYak9e0/00-03-03.png)
![Screenshot at 04:21: The stock chart showing the immediate positive reaction \(spike\) in PLTR price post-earnings.](https://ss.rapidrecap.app/screens/TmQFNYak9e0/00-04-21.png)
![Screenshot at 07:46: The analyst pointing out specific high-growth figures from the earnings release, such as 121% YOY commercial revenue growth.](https://ss.rapidrecap.app/screens/TmQFNYak9e0/00-07-46.png)
![Screenshot at 08:38: The analyst referencing the projected EPS growth rate of 52% annualized over the next four years.](https://ss.rapidrecap.app/screens/TmQFNYak9e0/00-08-38.png)
![Screenshot at 09:03: The analyst checking the balance sheet data on the right-hand screen to verify liquidity and debt structure.](https://ss.rapidrecap.app/screens/TmQFNYak9e0/00-09-03.png)