The Q2 2025 earnings cycle just delivered some genuine surprises. Most are still seeing growth slow. But not several of the very best.
Here’s what really happened, backed by the actual numbers.
The Real Re-Acceleration Stories
Palantir: The Breakout $1B Quarter
Growth trajectory: 13% (Q2 2023) → 27% (Q2 2024) → 48% (Q2 2025)
This is what genuine re-acceleration looks like. Palantir didn’t just beat expectations—it crossed the $1 billion quarterly revenue milestone for the first time, posting 48% year-over-year growth that left analysts scrambling to raise their models.
Morgan Stanley’s reaction said it all: “Palantir has the winning recipe to deploy AI. Wow… is our reaction to Q2 results, with nearly every headline metric and key performance indicator accelerating versus Q1, which itself was a very strong quarter.”
The numbers back up the enthusiasm. Revenue hit $1.004 billion versus the $940 million expected. More importantly, U.S. commercial revenue nearly doubled year-over-year to $306 million, proving this isn’t just government contract growth—it’s genuine commercial market penetration at scale.
The guidance raise tells the real story: Palantir lifted full-year revenue guidance from $3.89-3.90 billion to $4.142-4.150 billion. That’s a $250+ million increase at the midpoint—the kind of raise that signals fundamental business acceleration, not just quarterly beats.
Shopify: The E-Commerce Resurgence
Growth trajectory: 25% (Q2 2023) → 20% (Q2 2024) → 31% (Q2 2025)
Shopify’s story is more complex but equally compelling. After dipping to 20% growth in Q2 2024, the company accelerated to 31% in Q2 2025, delivering $2.68 billion in revenue—well above the $2.55 billion expected.
But the profit explosion was the real story. Earnings per share jumped 438% to $0.70, crushing estimates of $0.20. Net income surged 429% to $906 million versus $171 million a year ago. This is what operational leverage looks like when it finally kicks in.
Europe was the standout, with GMV growing 42% on a constant currency basis. More importantly for the current environment, Shopify saw no tariff impact. CFO Jeff Hoffmeister noted the company hadn’t seen any “drops in U.S. demand, whether inbound, outbound or local” and instead saw the market accelerate in Q2.
The stock reaction validated the results: shares surged 20% on the news, pushing year-to-date gains above 40%.
Datadog: The Steady Enterprise Expander
Growth trajectory: 20% (Q2 2023) → 26% (Q2 2024) → 28% (Q2 2025)
Datadog’s acceleration is less dramatic but perhaps more sustainable. Revenue grew 28% year-over-year to $827 million, beating the $791 million estimate, with EPS of $0.46 versus $0.41 expected.
The enterprise expansion story is compelling: Datadog now serves 3,850 customers with over $100K in annual recurring revenue, up from 3,390 a year ago. That’s 89% of total ARR coming from six-figure accounts—the kind of sticky, high-value relationships that weather economic storms.
At their DASH 2025 conference, Datadog unveiled over 125 new products and features, showing the innovation velocity that’s keeping them ahead of competitors. The market liked what it saw: shares jumped 8% in pre-market trading on top of a 54% rally since early April.
The Different Story: HubSpot’s Stabilization & Revenue Raise
Growth trajectory: 25% (Q2 2023) → 20% (Q2 2024) → 19% (Q2 2025)
HubSpot represents a different narrative entirely. This isn’t re-acceleration—it’s a company working through growth moderation while showing signs of stabilization. Importantly, it raised its estimates for next quarter.
Revenue hit $760.9 million, up 19% year-over-year, which beat estimates but continued the deceleration from 25% growth in Q2 2023. However, management raised full-year guidance by approximately $44 million to $3.08-3.088 billion, suggesting confidence in operational improvements despite top-line challenges.
The AI story is still developing. Customer Agent and Prospecting Agent are gaining traction, but monetization remains early compared to Palantir’s commercial success or Shopify’s merchant tools. HubSpot added 9,700 net new customers and maintained a 17% operating margin, but the growth trajectory tells a story of a company still working through the AI transition.
The New IPOs (Figma, Hinge Health) Are Growing Very Quickly
While the established players work through their re-acceleration stories, it’s worth noting that some of the newest public SaaS companies are growing at rates that make even the champions look modest.
Figma: The Design Platform Phenomenon
Figma just went public in July 2025 and the numbers are staggering. In Q1 2025, the design collaboration platform reported 46% year-over-year revenue growth to $228.2 million, putting them at over $900 million in annualized revenue. The company generated $44.9 million in net income—actual profits while scaling at hypergrowth rates.
What’s remarkable isn’t just the growth rate, but the breadth of adoption. Figma has 13 million monthly active users, with two-thirds of them not being professional designers. That expansion beyond the core user base into product managers, engineers, and other business functions shows the platform potential that investors are betting on.
The market clearly believes in the story. Figma’s stock tripled on its first day of trading, reaching a market valuation over $58 billion (although it’s since traded down materially from its peak). At 95% of Fortune 500 companies already using Figma and 1,031 customers paying over $100K annually, the land-and-expand model is working at scale.
Hinge Health: The AI-Enhanced Healthcare Disruptor
Hinge Health, which went public in May 2025, just reported its first public earnings this week and the results were impressive. Revenue surged 55% year-over-year to $139.1 million in Q2 2025, beating expectations of $125 million.
More importantly, the digital musculoskeletal care company showed the path to profitability. Non-GAAP operating income hit $26.1 million compared to a $14.4 million loss in Q2 2024. The company generated $33 million in free cash flow while scaling rapidly.
The client expansion story is compelling: 2,359 clients as of Q2, up 32% year-over-year, with over 50 partners including the five largest national health plans. CEO Daniel Perez emphasized their “AI-powered platform” and the “market’s embrace” of their automated healthcare delivery approach.
For Q3 2025, Hinge Health guided to $141-143 million in revenue (41% growth at midpoint) versus analyst expectations of just $129 million. Full-year guidance of $548-552 million also beat the $511 million consensus.
What Separates the Winners
The three true re-acceleration stories share common elements that other SaaS companies should note:
AI that actually monetizes. Unlike the AI washing across the industry, Palantir’s AIP platform, Shopify’s Magic tools (even if early), and Datadog’s observability innovations generate real revenue, not just marketing copy.
Enterprise customer expansion. All three showed meaningful expansion within existing large accounts. This is the stickiest form of SaaS growth—existing customers finding more value and expanding their spend.
Geographic diversification. International strength, particularly in Europe, provided both growth acceleration and currency benefits. This wasn’t just U.S. recovery.
Operational leverage. The profit expansion, particularly visible in Shopify’s 438% EPS growth, shows these companies achieving the operational efficiency that SaaS models promise at scale.
The Market Reality
These results highlight the bifurcation happening in B2B. While median public SaaS growth has declined to around 15%, companies that have successfully integrated AI into revenue-generating use cases, expanded within enterprise accounts, and achieved global operational excellence are accelerating past pre-COVID growth rates.
The market is rewarding this distinction. Beyond the individual stock reactions, these three companies are pulling away from the pack while others work through more fundamental challenges.
The question for SaaS leaders isn’t whether re-acceleration is possible—these results prove it is. The question is whether your company has the AI monetization, enterprise expansion, and operational discipline to join this select group of winners.
Because the data is clear: the SaaS market isn’t broadly recovering. It’s evolving, and only some companies are successfully making the transition.
