Palantir (PLTR 1.95%) stock saw a massive rally across the first half of 2025's trading. The tech company's share price rose 80.3% across the stretch against the backdrop of a 5.5% gain for the S&P 500 index, according to data from S&P Global Market Intelligence
Palantir's valuation has surged in 2025 thanks to strong business results and excitement surrounding the company's long-term opportunities in the artificial intelligence (AI) software space. The stock is now up roughly 1,570% over the last three years.

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Palantir stock crushed the market in 2025's first half
In February, Palantir published results for last year's fourth quarter -- and the print came in far better than Wall Street's already elevated expectations. The business posted non-GAAP (adjusted) earnings per share of $0.14 on revenue of $828 million, crushing the average analyst estimate's call for per-share earnings of $0.11 on sales of $776 million. Sales were up 36% year over year in the period, and the results showed that the company was continuing to score big wins with customers in the public sector and the private sector.
Palantir then published results for this year's Q1 in May, delivering adjusted earnings that were in line with Wall Street's target and sales that topped the market's expectations. The business posted adjusted earnings of $0.13 per share on sales of $884 million. Meanwhile the average analyst estimate had called for per-share earnings of $0.13 on sales of $863 million. Palantir stock actually saw a sell-off in the trading immediately following its Q1 report, but the results were strong enough to lay the foundations for the rally to resume after some initial volatility.
Palantir stock posted impressive gains across the first half of 2025's trading. The company's valuation appears to have gotten a boost from excitement surrounding AI companies with exposure to the defense industry and expectations that the Trump administration will help establish favorable conditions for its growth.
What's next for Palantir?
The rally for Palantir stock has continued in the second half of 2025, and the company's share price is now up roughly 11% across July's trading. Management is guiding for annual revenue to come in between $3.89 billion and $3.902 billion this year -- good for growth of roughly 36% at the midpoint of the target range. Meanwhile, the company's midpoint target calls for adjusted free cash flow of roughly $1.7 billion.
On the heels of explosive gains, Palantir is now trading at roughly 259 times this year's expected earnings and 91 times expected sales. While Palantir's incredibly growth-dependent valuation creates the potential for substantial downside volatility, the business has been serving up strong results -- and investors are betting that the company will continue to score big wins in the AI software space.