Palantir Technologies Inc. PLTR posted record earnings driven by AI adoption, but CEO Alex Karp says the U.S. risks falling behind without an "all-in" national effort.
AI Push Powers Palantir's Record $1 Billion Revenue Surge
Palantir Technologies reported its first-ever $1 billion quarter, a 48% year-over-year revenue jump fueled by soaring demand for artificial intelligence, as reported by Fortune
U.S. commercial sales surged 93%, and total profit climbed 33% to $327 million, beating Wall Street estimates. CEO Karp credited AI for the company's explosive growth and operational efficiency, calling it a "crazy, efficient revolution."
Palantir Plans To Boost Revenue With Smaller Workforce
"We're planning to grow our revenue … while decreasing our number of people," Karp said on CNBC.
"The goal is to get 10x revenue and have 3,600 people. We have now 4,100." Palantir has already reduced its IT team from 200 to under 80 employees by automating workflows with AI.
Despite the upbeat results, Karp sounded the alarm. "America is in the lead in government and commercial, but we could lose the lead," he said in a statement to Fortune. "Being so far ahead is often a danger zone."
Palantir Stock Target Raised To $200 As AI Demand Accelerates
On Tuesday, Wedbush analyst Dan Ives raised his price target on Palantir Technologies to $200, citing “hyper growth demand” and exceptional commercial expansion.
He called Palantir a defining force in the "use case era of the AI Revolution." With the current stock price at $160.66, Ives projects a 24.5% upside. Commercial revenue rose 35% year-over-year, reflecting a strategic pivot from government contracts toward enterprise adoption of its Foundry and AIP platforms.
Following strong Q2 earnings, CEO Karp credited the company's momentum to loyal retail investors and dismissed critics, stating, "Stop talking to the haters. They’re suffering."
Palantir Earns Wall Street Praise After AI-Fueled Q2 Beat
On Monday, Palantir received widespread acclaim from Wall Street after delivering a blowout Q2 performance that beat expectations across the board.
Ives called the company the "Messi of AI" and praised CEO Karp's leadership as a "Hall of Fame performance," predicting a trillion-dollar market cap within 2–3 years.
CNBC's Jim Cramer echoed the bullish sentiment, projecting the stock will hit $200, citing continued momentum and dismissing "Doomerism" — a term used by Palantir to describe negativity fueled by short-sellers.
Price Action: Palantir shares rose 7.85% on Tuesday to close at $173.27, but dipped 0.73% in premarket trading on Wednesday, according to Benzinga Pro.
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
Edge Rankings
Price Trend
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
