Palantir (PLTR) didn’t need a hype man following its blowout Q2 showing, but it got one anyway in veteran analyst Jim Cramer.
The AI bellwether dished out a near-billion-dollar quarter with triple-digit income growth. On top of that, guidance popped, with Palantir flexing its AI muscle.
With one of its strongest quarterly earnings prints, longtime Palantir bull Jim Cramer rushed in, with arguably his boldest call on the stock to date.
Though it potentially raises some eyebrows, those who’ve tracked his predictions know it’s not without precedent.
Cramer’s been riding Palantir stock for years and is not alone this time. However, there’s something about the explosiveness in Palantir’s Q2 showing that positions it in the AI arms race more solidly than ever.
Palantir pops as Cramer talks $200 and Dan Ives sees more upside.Image source: Kevin Dietsch/Getty Images
Palantir’s Q2 earnings report blew past market expectations with considerable aplomb.
Total sales were up a powerful 48% YOY to roughly $1.0 billion, obliterating the $938 million estimate.
On the bottom-line front, its adjusted EPS came in at 16 cents, topping estimates by a couple of cents (roughly a 14.3% upside surprise).
Commercial sales jumped a mind-boggling 93% to $306 million, while U.S. government sales surged 53% to $426 million.
That indicates that enterprise clients and federal agencies are leaning harder into Palantir’s AI-powered software stack.
CEO Alex Karp lauded the “astonishing impact of AI leverage” for Q2’s strength. He talked up the success of the company’s investments in generative AI, high-performance chips, and the robust Foundry and AIP platforms.
Also, by layering in AI models directly into its infrastructure, Palantir is efficiently streamlining everything from logistics and supply chains to predictive maintenance.
That’s a big part of why its net income spiked 144% year-over-year to $327 million. Palantir’s Rule of 40 score (a metric that combines revenue growth and profit margins) hit an eye-popping 94%, one of the highest in its niche.
On top of that, operating margins expanded, while adjusted free cash flow stayed strong, solidifying the company’s profitability position.
Looking ahead, management bumped its full-year 2025 revenue guidance to $4.14–$4.15 billion, up from a prior $3.89–$3.90 billion.
U.S. commercial sales are expected to rise to over 85% year-over-year. And for Q3, Palantir forecasts a whopping 50% top-line growth, the fastest sequential increase in its rich history.
These results underscore Palantir’s deepening role as a foundational AI infrastructure provider, with a massive long-term growth runway ahead.
Jim Cramer didn’t hold back after Palantir’s rollicking earnings, as he doubled down on his long-running bull thesis like it never left.
“Palantir, when it was $50, I said it would go to $100; when it was at $100, I said it would go to $150,” he said. With shares now breaching $160, Cramer added, the “next stop is $200,” pointing to another 20%+ bump from current levels.
A big part of Cramer’s bull case on Palantir is the Big Data giant’s growing traction as a go-to enterprise AI player.
Demand across federal and commercial sectors is soaring, underscoring the depth of the company’s unique data analytics backbone.
For Cramer, this is far from hype and more about Palantir’s positioning.
The company is “uniquely positioned to capitalize on soaring enterprise AI spending,” he said.
Additionally, Cramer pushed back against skeptics, throwing shade at the naysayers. “Doomerism,” he called it. All that noise about AI limitations and overvaluation? He says it’s just the shorts missing the broader outlook.
Cramer wasn’t the only analyst showering praise on Palantir post its Q2 showing. Veteran tech analyst Dan Ives of Wedbush hailed the quarter as a “blowout across the board” while reiterating his Outperform rating.
Ives zeroed in on two critical metrics that stood out for him.
The first was a 53% year-over-year surge in U.S. government revenue; the other was the stunning 93% jump in commercial sales.
Those numbers, he said, prove that Palantir’s massive AI investments are paying off and effectively translating into real sales across key sectors like defense, health care, and energy.
He even went full sports metaphor, calling Palantir “the Messi of AI,” lauding its ability to turn complex IP into real-world applications.
In addition to that, Ives argued, it’s a signal of a much larger story taking shape.
He feels that “the golden path” into multi-trillion-dollar AI spending has arrived, and Palantir is leading the charge.
He believes the company is on track to generate north of $1 billion in AI platform sales within a few years.
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That’s the foundation of his massive trillion-dollar valuation thesis.
That said, at the time of writing, Palantir stock is up more than 6% pre-market Aug. 5 to $170, after jumping 4% on Monday, closing at $160.66.
