Palantir and Snowflake earnings show agentic AI reaching 93% growth

Palantir's revenue grew 93 percent to $1.94 billion while Snowflake's product revenue accelerated to 34 percent, showing enterprise AI spending is reaching the two platforms anchoring the agentic AI stack.

"Palantir has become the cleanest public expression of enterprise AI software demand, converting foundation models into deployed workflows through Gotham, Foundry and AIP," Nick Mersch, portfolio manager at Purpose Investments, said.

Palantir's US commercial revenue surged 149 percent to $764 million, with US government up 90 percent to $809 million. Adjusted operating margin hit 62 percent and the Rule of 40 score reached 155. Management raised full-year revenue guidance to $8.15 billion, implying 82 percent growth, and guided adjusted free cash flow to $4.5 to $4.7 billion. Snowflake delivered product revenue of $1.334 billion, up 34 percent — a third consecutive quarter of acceleration from 26 percent a year ago. Net revenue retention climbed to 126 percent, and remaining performance obligations grew 38 percent to $9.21 billion. The million-dollar customer count reached 779, with 46 crossing the threshold in the quarter against 26 a year earlier.

The two companies take different routes to the same destination. Palantir sells software that deploys AI into government and enterprise workflows, while Snowflake's consumption-based data platform charges as AI workloads run on its infrastructure. Snowflake raised full-year product revenue guidance to $5.84 billion, up from 27 percent growth previously, and paired the print with a $6 billion five-year AWS commitment. Snowflake's next test comes September 2, when it reports fiscal second-quarter results.

Revenue Jumps 93% at Palantir, 34% at Snowflake

Palantir's approach centers on converting foundation models into deployed workflows. CEO Alex Karp framed the quarter around "unleashed demand for AI sovereignty," and the entrenched government franchise gives that framing substance as allied nations stand up sovereign stacks. The stock had lost roughly 29 percent year to date heading into the print as the AI software trade deleveraged, then jumped 12 percent on the results. It still trades north of 100 times earnings.

Snowflake has repositioned from cloud data warehouse to AI Data Cloud under CEO Srikrishna Ramaswamy. The strategic pitch is the agentic enterprise: Snowflake Intelligence gives business users natural language access to governed data while builders assemble agents and pipelines directly on the platform. The company also introduced dynamic model routing in Cortex AI Gateway, allowing customers to route queries among models to reduce costs and improve efficiency.

Can the Rally Survive Databricks and High Expectations?

Wall Street has taken notice. Bank of America raised its Snowflake price target from $330 to $395 with a buy rating, implying 23.81 percent upside from the previous close. Citizens JMP lifted its target to $408 from $325 with a market outperform rating, and UBS maintained its buy rating while raising its target to $425, citing improving enterprise AI demand and customer adoption. UBS also cautioned that revenue-growth expectations heading into the earnings report are demanding — Snowflake has risen more than 170 percent since April.

The structural overhang for Snowflake remains Databricks, now carrying a $190 billion private valuation. Consumption pricing means AI workloads land directly in revenue, which cuts both ways in a downturn. For Palantir, the debate is entirely about price — the fundamentals are currently unimpeachable, but the margin of safety embedded in the stock price is approximately zero.

Snowflake trades at a market cap of $110.58 billion with a one-year range of $118.30 to $341.95. The stock's fifty-day moving average sits at $273.79, well below the current price of $319.05. Palantir's Q2 print showed US commercial deal value more than doubled to $6.24 billion, suggesting the AI software trade may have room to run despite the valuation.

This article is for informational purposes only and does not constitute investment advice.