Palantir Technologies has released its latest quarterly report, showcasing unprecedented financial growth. Quarterly revenue hit a record $1.4 billion, representing a 70% increase year-over-year.
Investor and co-founder of Gerchik & Co, Ivan Kroshnyi, analyzed the drivers behind this surge, highlighting the key sectors that propelled these record-breaking figures.
Palantir’s most impressive dynamics were seen in the US market. US commercial revenue skyrocketed by 137% year-over-year ($507 million), with a 28% increase in the last quarter alone.
The government sector followed suit, with US government contract revenue rising 66% YoY to $570 million. However, beyond technological superiority, these numbers reflect a deep alignment with the current administration's political agenda.
The primary catalyst for the revenue spike for Palantir and its peers has been the massive increase in spending for Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP).
Following Donald Trump's second inauguration in January 2025 and the enactment of the "Big Beautiful Bill" in July, funding for migration agencies surged:
ICE contract spending more than doubled to $3.7 billion over two quarters.
CBP spending on private contractors increased sevenfold between the first and second halves of 2025.
According to an FT analysis, the collective earnings of major contractors (including Palantir and Deloitte) from agencies central to the immigration campaign have exceeded $22 billion.
| Company | Contract Value | Focus Area |
| Fisher Sand & Gravel | > $6 Billion | Southern border wall construction |
| CSI Aviation | > $1.2 Billion | Charter flights for deportation |
| Deloitte | > $100 Million | Consulting services for ICE and CBP |
| Palantir | $81 Million | Data analytics and monitoring OS |
Palantir’s role has drawn significant scrutiny. The company, a long-term partner of ICE, secured a $30 million deal in April to develop an operating system specifically for "tracking self-deportation."
Additionally, Palantir provides tools designed to "optimize operations for selecting and detaining illegal migrants." While CEO Alex Karp has dismissed ethical concerns regarding the group's work, the financial rewards from the administration’s new tactics remain at an all-time high.
It is important to note that the total financial benefit for Big Tech is often hidden behind third-party resellers:
Microsoft and Amazon provided services worth at least $93 million and $75 million respectively, primarily through intermediaries like Dell Federal Systems.
Motorola Solutions holds $19 million in direct contracts, but a reseller won a **$260 million** contract to supply its equipment for law enforcement activities.
Palantir’s record-breaking quarter is a textbook example of how a state's political vector directly translates into corporate revenue. As government spending on security and digital surveillance scales up, tech contractors positioned at the center of these mandates become the most resilient players in the market.
More investment ideas and reviews of promising projects for investors can be found on Ivan Kroshnyi's personal website.
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