Palantir forecasts greater demand from US groups for its AI software

Palantir reported second-quarter results that beat on the demand narrative it has been building for over a year: US sales rose 23%, and management guided toward greater demand ahead from US commercial and government customers for its AI platforms. Enrichment data shows the company's broader FY2025 numbers running hot — $4.5B in revenue, up 56.2% year-over-year, with 82.4% gross margin and 36.3% net margin, translating to $0.63 in diluted EPS. Those are software-company margins paired with growth rates rarely seen at this revenue base.

The story matters because Palantir has become a bellwether for whether enterprise and government AI spending is durable or a bubble narrative. The 23% US sales growth figure, if it decelerates or accelerates from prior quarters, will be read by the market as a signal for the broader AI-software trade, not just PLTR specifically. The stock has traded at a premium multiple for years on the promise that Gotham and Foundry adoption would eventually convert into this kind of margin profile — and the print suggests that conversion is happening.

The tension going forward is valuation versus execution: bulls point to the accelerating US demand commentary and the 56.2% YoY growth as proof the AI-platform thesis is playing out in real revenue and real margin, not just multiple expansion. Bears will note that Palantir's valuation already prices in years of growth at this pace, so any deceleration in the 'greater demand' forecast — or a hint that government spending normalizes — could compress the multiple sharply given how much good news is embedded. Watch subsequent guidance commentary and whether commercial (versus government) mix continues to shift, since that mix is central to the bull thesis on durability.