Nasdaq 100: Palantir Soars Pre-Market on Blowout Earnings, Igniting Bullish Stock Market Outlook

All-Time High for PLTR as Revenue Smashes Expectations

Palantir Technologies (PLTR) surged to record highs after a blockbuster Q2 earnings report that beat expectations across all key metrics.

Shares rose 4.14% on Monday to close at $160.66 and climbed another 5.05% in Tuesday’s pre-market session, hitting $168.77.

The rally positions Palantir to challenge the $400 billion market cap threshold.

The broader market reflected the bullish tone, with Nasdaq-100 Index futures up 70.75 points, or 0.30%, at 23,367.25 as of 06:03 GMT.

$10 Billion Army Deal Anchors Government Growth

Q2 revenue reached $1.004 billion, rising 48% year over year and beating the $939 million consensus. US government revenue climbed 53% to $426 million, driven by a major 10-year, $10 billion contract with the US Army.

The agreement consolidates 75 prior deals into a single AI-powered defense infrastructure.

CEO Alex Karp described the quarter as “bombastic” and signaled further integration with federal systems may follow. Analysts note the deal is one of the largest software contracts in Department of Defense history.

Commercial AI Business Breaks Out in US Market

Palantir’s US commercial revenue surged 93% year over year to $306 million, outpacing the $273 million estimate. The company closed $2.27 billion in total contract value during the quarter — a 140% increase from the same period last year.

Management credited strong demand for enterprise AI tools and real-time decision platforms. Adoption is especially high in sectors requiring complex operational data, including healthcare, logistics, and manufacturing. While international commercial growth remains modest, the US business continues to scale rapidly.

Profitability Soars, Guidance Raised Aggressively

Net profit doubled to $326.7 million, with EPS at $0.16 versus the $0.14 estimate. The company raised its full-year revenue forecast to $4.14–$4.15 billion and lifted US commercial revenue guidance to $1.3 billion, implying at least 85% growth.

Palantir is now the most expensive stock in the S&P 500 on an earnings basis, trading at a P/E ratio exceeding 1000x. Despite valuation concerns, the profit ramp suggests operating leverage is taking hold.

Market Outlook: Bullish Momentum with Elevated Valuation Risk

Palantir’s Q2 performance supports a bullish near-term view. Explosive growth, massive federal contracts, and expanding margins are fueling momentum. Nasdaq futures confirming strength reinforces sentiment.

Still, valuation remains a key risk. Traders should monitor for signs of deceleration — but for now, the trend favors continued upside.

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