Palantir reported more than 50% growth in earnings from U.S. government contracts last quarter, boosted by the White House’s push for cost-cutting and adoption of artificial-intelligence technology. The company,

Chief executive Alex Karp said Palantir’s business has “accelerated rapidly” after it reported $1 billion in quarterly revenue for the first time.

The firm, which has benefited from government cost cutting, saw strong revenue, but its price-to-earnings ratio could be a warning sign for investors. Shares of Palantir Technologies (Nasdaq: PLTR) are surging to new highs after the company reported better-than-expected Q2 2025 results.