Palantir Technologies Inc (NASDAQ:PLTR) stock rose 7.43% (As on August 5, 11:17:08 AM UTC-4, Source: Google Finance) after the company topped Wall Street’s estimates, surpassing $1 billion in quarterly revenue for the first time, and hiking its full-year guidance. Palantir’s U.S. revenues jumped 68% from a year ago to $733 million. US commercial revenue came in at $306 million, growing 93% year over year, while US government revenue for the quarter was $426 million, up 53% from the same quarter last year. Analysts had estimated that sales for the two sectors would come in at $273 million and $391 million, respectively.

Moreover, the software analytics company has seen a boost from President Donald Trump’s government efficiency campaign, which included layoffs and contract cuts. Palantir’s U.S. government revenues jumped 53% from the year-ago period to $426 million. During the quarter, Palantir said it closed 66 deals of at least $5 million and 42 deals totaling at least $10 million. Total value of its contracts grew 140% from last year to $2.27 billion. Last week, the company also secured a $10 billion software and data contract with the U.S. Army. Net income rose 144% to about $326.7 million, or 13 cents per share, from about $134.1 million, or 6 cents per share a year ago. The company continues to generate strong cash flow with second quarter adjusted free cash flow of $569,000,000 representing margin of 57%.

PLTR in the second quarter of FY25 has reported the adjusted earnings per share of 16 cents, beating the analysts’ estimates for the adjusted earnings per share of 14 cents, according to LSEG estimates. The company had reported the adjusted revenue growth of 48 percent to $1 billion in the second quarter of FY25, beating the analysts’ estimates for revenue of $940 million.

The software analytics company also boosted its full-year outlook guidance. For the full year, Palantir now expects revenues to range between $4.142 billion and $4.150 billion, up from prior guidance of $3.89 billion to $3.90 billion. The company is also raising the full year U. S. Commercial revenue guidance to an excess of 1,302,000,000 representing a growth rate of at least 85%, 17 points higher than the guidance we gave just last quarter.

For the third quarter, Palantir forecast revenues between $1.083 billion and $1.087 billion, beating an analyst estimate of $983 million. Palantir also lifted its operating income and full-year free cash flow guidance.