ETFs to Ride on Palantir's First Billion-Dollar Quarter Revenues

Palantir’s PLTR second-quarter 2025 results spread bullishness about the company’s growth prospects. The software maker beat earnings and revenue estimates and raised its revenue forecast once again, driven by the artificial intelligence boom. The company also made a historic milestone of achieving $1 billion in revenues, its first-ever billion-dollar quarter. Shares of PLTR jumped nearly 5% in after-market hours on elevated volume. 

Palantir reported earnings per share of 16 cents, outpacing the Zacks Consensus Estimate by a couple of cents and improving 78% from the year-ago quarter. Revenues climbed 48% year over year to $1 billion and edged past the consensus estimate of $938.33 million.

U.S. government revenues soared 53% year over year to $426 million, while U.S. commercial revenues jumped 93% to $306 million.

Following the blockbuster quarter, Palantir raised its full-year revenue guidance to $4.14-$4.15 billion from the previous estimate of $3.90 billion. It expects revenues of about $1.085 billion for the ongoing third quarter, continuing the record-breaking quarterly growth trajectory. The Zacks Consensus Estimate is pegged at $989.44 million for the ongoing quarter and $3.92 billion for the full year. Most of the company's success is credited to Palantir's integration of AI technology into its offerings (read: Big Tech Roars on AI Frenzy: ETFs to Play).

Palantir shares have more than doubled this year and have increased by more than 500% over the past 12 months. This has made its valuations lofty. Shares are currently trading at 276 times forward earnings, according to FactSet. Tesla TSLA is the only other top 20 company with a triple-digit ratio at 177.

Palantir-Heavy ETFs to Buy

Investors seeking to tap the growth in the AI software maker should consider ETFs with a substantial allocation to Palantir. Direxion Daily PLTR Bull 2X Shares PLTU and GraniteShares 2x Long PLTR Daily ETF (PTIR) both offer two times (200%) the performance of the common shares of Palantir Technologies. PTIR charges a higher fee of 1.15% compared to 0.95% for PLTU but has larger AUM of $602 million versus $477.7 million for Direxion’s product (read: Single-Stock ETFs in Focus as Big Tech Earnings Unfold).

Tech ETFs like iShares U.S. Tech Independence Focused ETF IETC and iShares Expanded Tech-Software Sector ETF IGV have PLTR as the second holding in their baskets with 10.3% and 9.6% share, respectively.

IETC is an actively managed ETF providing exposure to U.S. tech companies with a greater proportion of technological capabilities, revenues and production in the United States. Software & Services takes the largest share at 41.5% while semiconductors & semiconductor Equipment takes 23.7% share. IETC charges 18 bps in fees per year.

IGV offers targeted exposure to software companies in the technology and communication services sectors by tracking the S&P North American Expanded Technology Software Index. Application software takes the largest share at 60.69%, followed by 36.6% in systems software. IGV charges 39 bps in annual fees. 

PLTR occupies the top spot in Global X Defense Tech ETF SHLD. It seeks to invest in companies positioned to benefit from the increased adoption and utilization of defense technology. This includes companies that build and manage cybersecurity systems, utilize artificial intelligence and big data, and build advanced military systems and hardware such as robotics, fuel systems, and aircraft for defense applications. SHLD tracks the Global X Defense Tech Index and charges 50 bps in annual fees.

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This article originally published on Zacks Investment Research (zacks.com).

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