Anthropic, the hugely successful AI model developer whose IPO is set to take place in November, is growing extremely rapidly. Moreover, its revenue growth is far outpacing its cost increases, and the company was profitable in the second quarter, excluding paper losses triggered by changes in the value of its debt. Similarly, in Q3, it reported an operating profit, excluding noncash charges. These attributes are certainly positive for Anthropic stock.
More importantly, Anthropic’s suite of AI models, called Claude, has shown it can be extremely powerful and useful across diverse fields, including IT security, defense, and drug discovery. After researching Claude’s attributes, I believe it is well-suited for companies, leaving it well-positioned to continue growing revenue quickly for the foreseeable future.
Given Claude’s tremendous appeal to companies and governments, the AI agent could, in the not-too-distant future, generate trillions of dollars of revenue and many hundreds of billions of dollars of profits for Anthropic.
On the other hand, with Anthropic’s market capitalization expected to come in at $1.5 trillion to $2 trillion, the company’s valuation is already extremely high, and it may be stymied by competition over the longer term.
Still, growth investors with risk tolerance should consider devoting small portions of their portfolios to Anthropic stock.
Blistering Growth and Likely Profitable in Real Terms
In the first half of this year, the start-up’s revenue surged to $16.3 billion, versus $1.2 billion in the first half of 2025. And according to published reports, its sales reached $16.8 billion last quarter. Meanwhile, its costs have grown much more slowly, with infrastructure expenses as a share of revenue tumbling from 201% in the first half of 2025 to 55% in the first half of last year.
As a result, it actually generated operating profit of $974 million in Q2, although it generated a bottom-line loss of $80.7 billion in the first half of the year. But most of those losses were caused by appreciation in the value of “convertible notes and similar securities” that investors bought from Anthropic. Those increases don’t reduce the amount of money the start-up has, although converting the debt could weigh on Anthropic’s stock price going forward by increasing its share count.
In any case, excluding the technical losses triggered by increases in the value of its debt, Anthropic appears most likely to be profitable. That’s because, in the first half of the year, the firm had only about $8.8 million in non-operating expenses aside from the technical losses, while its Q2 operating profit, as mentioned earlier, was $974 million. So if the pattern holds, Anthropic will be in the black, excluding the technical losses caused by fluctuations in the value of its debt. And with revenue poised to keep climbing much faster than expenses, profits should rise rapidly.
Meanwhile, in Q3, the company’s operating profit, excluding noncash charges, came in at a huge $2.5 billion, while its revenue jumped to $16.95 billion.
The Tremendous Usefulness of Claude
Claude has already significantly facilitated drug development. For example, it enabled a company called Generate Biomedicines to improve its cancer treatment significantly.
In military operations, Claude has been used to “assist with intelligence analysis, data processing, target assessment, operational planning, and modeling and simulation,” according to Google AI. Although the Department of War has stopped using Anthropic’s tools, the agency could easily reverse its position in the future, and Anthropic could sign deals with foreign militaries.
And as I pointed out in a previous column, Anthropic’s Mythos model is extremely adept at identifying IT security vulnerabilities.
Well-Suited for Companies and Already Very Popular With Businesses
According to one reviewer, Claude is appropriate for those with “very large documents, long coding sessions, or an assistant that can hold a whole project in view.” Another reviewer says that “Claude is best for a team structure.” These attributes are great for companies, most of which deal with large projects, think strategically, and work in fairly large teams.
This suggests Claude is already extremely popular with firms: over 11,900 customers spent more than $100,000 on Anthropic’s offerings over the last year, and more than 1,900 shelled out $1 million. Further, Anthropic’s net revenue retention rate is a staggering 900%, showing that the start-up dynamo’s customers are rapidly increasing the amounts that they spend on Claude.
Risks and the Bottom Line on Anthropic Stock
It’s entirely possible another company could develop an AI model that’s more attractive to businesses than Claude. For investors, it’s also important to consider that Anthropic’s valuation will be quite huge.
Still. Given Anthropic’s first-mover advantage, its technical head start, and its huge customer base, including Google (GOOG) and Amazon (AMZN), it will be difficult for a challenger to take much market share from Anthropic. If Anthropic keeps adding new capabilities and corporate and government customers, its market capitalization could easily reach $5 trillion to $10 trillion in five to ten years.
*This article is intended to be informational only; it is not financial advice.
