Palantir Chief Executive Officer Alex Karp hasn't been shy about touting the company's strong performance based on the Rule of 40, noting that it had a Rule of 40 score of 94 in its second-quarter report. That was made up of 48% revenue growth and 46% adjusted operating margin.

Palantir's Q2 2025 shows explosive growth, raised guidance, and strong government deals. Discover why it's a buy despite margin pressures.

Palantir (PLTR) shares closed higher on Friday after a senior Wedbush analyst, Dan Ives, said the data analytics firm will exceed $1 trillion in market cap within the next three years. Ives’ bullish remarks arrive only days after the Denver-headquartered firm reported a blowout Q2 and raised its full-year guidance,