Palantir reported a 71% increase in U.S. commercial revenue and a 45% gain in U.S. government revenue in the period, showing that both businesses are booming. The company recorded a record level of U.S. commercial total contract value of $810 million -- up 183% year over year.

Palantir stock has been on a tear in 2025, rising more than 40% even after Tuesday's big drop. Analysts have expressed concerns about the AI firm's valuation.

Shares of Palantir Technologies slumped more than 13% on Tuesday, after quarterly results and a raised forecast failed to meet the high expectations of Wall Street investors, who had driven the stock price up significantly ahead of earnings.