"Palantir's growth story hinges on its dual pillars: government and commercial segments. Government revenue, which makes up about 55% of the total, grew 53% in Q2, driven by expanded U.S. Army and intelligence community deals . Commercial revenue surged 93%, fueled by its Foundry platform's adoption in healthcare and manufacturing. Yet, the bar is set high. Investors now expect the commercial side to pull even more weight as Palantir pushes into Europe and Asia."
"A miss below 50% could signal saturation in government contracts, where Palantir's Gotham software dominates but faces competition from startups like Anduril. Recent wins, including a $480 million Army contract extension, buoyed shares, but delays in deployment could cap upside. The company's adjusted operating margin hit 34% last quarter, up from 28%, showing profitability gains, and management is guiding for 45% margins in Q3. Still, with R&D expenses climbing 25% year over year, any revenue shortfall amplifies concerns over f"
Palantir projects roughly $1.083–$1.087 billion in Q3 revenue, implying about 49.6% year-over-year growth and leaving little margin against Wall Street estimates. Year-to-date stock gains of 128% reflect AI enthusiasm, but recent security concerns and an August valuation dip increase downside risk. Government revenue, roughly 55% of total, grew 53% in Q2 while commercial revenue rose 93% as Foundry expanded in healthcare and manufacturing. Investors expect more commercial contribution abroad. The company improved margins to 34% and targets 45% in Q3, even as R&D spending climbs 25% year over year.
Read at 24/7 Wall St.
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