Earnings That I liked!
Two of the hottest growth stocks of the year.
I am talking about stocks that have gone wild in the markets, with millions of investors betting on them — and despite their impressive performance, they had completely different reactions after their latest earnings reports.
On the one hand, Palantir ($PLTR) continues to crush it.
On the other, Hims & Hers Health ($HIMS) took a bit of a hit.
PALANTIR
Let’s start with Palantir.
The company announced its Q2 2025 results on Monday, and they were... explosive.
Revenue hit $1 billion — the first time in the company’s history.
Earnings per share came in at $0.16, beating all estimates.
Revenue growth reached 48% year-over-year, and just the commercial segment in the U.S. soared by 93%!
Government contracts also rose 53%, hitting $426 million, showing that Palantir is strengthening its position in both the private and public sectors.
Even more impressive? Palantir’s stock is up +113% since the beginning of the year.
CEO Alex Karp stated that we're living in an era of the “unimaginable impact of artificial intelligence”, and that customers are not just using Palantir’s tools anymore — they're building their own applications on top of them.
The AIP product has become a core infrastructure for many businesses and government agencies, with the customer count increasing by 43% year-over-year to 849.
And all of this with a Rule of 40 score of 94%!
(For context: Rule of 40 combines growth and profitability. A score above 40% is considered excellent — Palantir basically maxed it out.)
Management expects Q3 revenue of $1.08–$1.09 billion, representing 50% YoY growth — the highest sequential growth in the company’s history.
But — and it’s a big “but” — as good as those numbers are, Palantir’s valuation makes absolutely no sense.
Why? Because Palantir currently has a Forward P/E of 259.93!
That’s nearly 1,000% higher than the industry average!
And the Forward P/S is 91.34, which is almost 2,900% above the average!
HIMS & HERS
This is a digital health company, focused on telehealth and personalized medicine, and its stock is up +151% this year.
Incredible momentum — and yet... after its Q2 earnings, the stock dropped nearly 10%.
What happened?
Revenue came in at $544.8 million, below estimates of $552 million.
Still, that’s 73% year-over-year growth!
EPS was $0.17, slightly above expectations, and adjusted EBITDA reached $82.2 million — a record high for the company.
The drop was due to a 7% revenue decline compared to Q1, which worried some investors.
Hims had benefited greatly from offering cheaper versions of GLP-1 weight-loss drugs, like Wegovy.
However, their partnership with Novo Nordisk ended abruptly, with Novo citing regulatory compliance concerns.
That, along with growing scrutiny over the weight-loss drug market, made investors cautious.
Still, Hims continues to offer its products at significantly lower prices than brand-name alternatives.
And despite the hit, subscriber growth is still strong (+31% YoY), and the company maintains its full-year revenue forecast of $2.3–$2.4 billion.
The good news?
Management remains optimistic, forecasting Q3 revenue of $570–$590 million, and continues its international expansion.