Denver, CO – Palantir Technologies Inc. (NASDAQ: PLTR) reported exceptional financial results for the second quarter ended June 30, 2025, marking a significant milestone with its first-ever quarterly revenue exceeding $1 billion. The data analytics and AI software company achieved a remarkable Rule of 40 score of 94% for the quarter, a key metric combining revenue growth and profitability. While CEO Alex Karp highlighted a "91% Rule of 40 score" in a recent tweet, official company reports confirm the higher 94% figure.
This 94% Rule of 40 score represents a substantial increase from 83% in Q1 2025 and 64% in Q2 2024, underscoring Palantir's accelerating growth and operational efficiency. The Rule of 40 is widely used in the software industry to assess a company's health, with scores above 40% generally considered strong. Palantir's performance places it in an elite category among enterprise software firms.
The company's Q2 2025 revenue surged by 48% year-over-year to $1.00 billion, driven by robust performance across its segments. U.S. commercial revenue was a significant contributor, climbing an impressive 93% year-over-year. Palantir also reported a GAAP net income of $326.7 million and an adjusted operating income of $464 million, achieving a 46% adjusted operating margin.
In the tweet, CEO Dr. Alex Karp emphasized the significance of these results, stating, > "The single most impressive number I think any enterprise software company’s ever seen." He further articulated the company's strategic vision, adding, > "The prediction that all the tendies would be downstream from the values— chips and ontology— is being proven not as a thesis, but as a reality." This statement highlights Palantir's belief that its foundational software and AI-driven platforms are translating directly into tangible financial gains.
Following the earnings announcement, Palantir's stock price saw an increase, reflecting strong investor confidence. The company also raised its full-year 2025 revenue guidance, anticipating continued momentum. Palantir's Q2 success was further bolstered by significant deal closures, including $2.3 billion in total contract value (TCV) and $684 million in annual contract value (ACV), securing 157 deals over $1 million.