Record-Breaking Revenue and Growth
Palantir surpassed $1 billion in quarterly revenue for the first time with a 48% year-over-year growth in Q2 2025. The U.S. business revenue grew 68% year-over-year and 17% sequentially, now representing 73% of total company revenue. U.S. commercial business saw a remarkable 93% year-over-year growth.
Strong Performance in U.S. Commercial Segment
The U.S. commercial segment grew 93% year-over-year and 20% sequentially, comprising 31% of Q2 revenue compared to 23% a year ago. The company closed its highest-ever TCV and ACV, with $2.3 billion in TCV and $684 million in ACV.
Significant Government Contracts
Palantir was awarded a $218 million order from U.S. Space Force and a 10-year $10 billion contract with the U.S. Army. The company also saw a 53% year-over-year growth in U.S. government business.
Expansion of Top Customers
Top 20 customers now average $75 million a year in trailing 12-month revenue, up 30% from a year ago. The company closed 157 deals worth $1 million or more, with 66 deals worth $5 million or more and 42 deals worth $10 million or more.
Improved Profitability and Cash Flow
Adjusted operating margin expanded to 46%, and adjusted free cash flow was $569 million, representing a margin of 57%. The Rule of 40 score climbed to 94% in Q2, up 11 points quarter-over-quarter.