Palantir Technologies Inc Earnings
Palantir Technologies Inc (NASDAQ: PLTR) has reported stunning financial results for the third quarter ending September 30, 2025. The company has boasted a commendable triumph attributed to strong performance across various segments and an exceptional escalation in total revenue. This report delves into the financial metrics, key developments, and strategic insights that shaped the company's performance during this quarter.
Palantir Technologies Inc Results
In its third-quarter financial results, Palantir showcased notable growth in key financial metrics, marking a significant stride in both year-over-year (YoY) and quarter-over-quarter (QoQ) comparisons. The following table encapsulates these pivotal numbers:
| Metric | Q3 2025 | Q3 2024 | Year-over-Year |
|---|---|---|---|
| Total Revenue | $1.181 billion | $724 million | 63% |
| GAAP Income from Operations | $393 million | - | - |
| Adjusted Income from Operations | $601 million | - | - |
| GAAP Net Income | $476 million | - | - |
| GAAP EPS | $0.18 | $0.10 | - |
| Adjusted EPS | $0.21 | - | - |
| Cash from Operations | $508 million | - | - |
| Adjusted Free Cash Flow | $540 million | - | - |
Palantir's substantial revenue growth was accompanied by an impressive net income increase, further amplified by a remarkable adjusted earnings per share outcome.
Revenue Breakdown
The revenue performance of Palantir exhibits distinct gains across its major segments, reinforced by a robust escalation in U.S. operations. Here is a detailed breakdown:
| Segment | Q3 2025 Revenue | YoY Growth | QoQ Growth |
|---|---|---|---|
| Total Revenue | $1.181 billion | 63% | 18% |
| U.S. Revenue | $883 million | 77% | 20% |
| U.S. Commercial Revenue | $397 million | 121% | 29% |
| U.S. Government Revenue | $486 million | 52% | 14% |
Segment Analysis
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U.S. Commercial Revenue: The segment marked an extraordinary growth of 121% YoY and 29% QoQ, indicating Palantir’s increased traction with commercial clients, fueled by its cutting-edge technologies and solutions.
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U.S. Government Revenue: Despite a slightly moderate growth compared to commercial sectors, the 52% YoY and 14% QoQ increment in government revenue underscores Palantir's entrenched position within public sector operations.
The U.S. segment constitutes a significant portion of Palantir's revenue breakdown, with both commercial and government streams contributing to its robust growth narrative.
Key Developments
Q3 2025 witnessed several pivotal developments that underscored Palantir's strategic direction and operational success:
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Record Contract Valuation: Palantir closed contracts with a total contract value (TCV) of $2.76 billion, marking a 151% YoY surge. Particularly noteworthy was the U.S. commercial TCV rise of 342% YoY.
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Customer Growth and Engagement: The customer count swelled by 45% YoY, indicating a sustained and expanding market presence while adding substantial value across client engagements exemplified by the impressive $3.63 billion worth of remaining deal value (RDV).
Comments from Company Officers
Echoing a tone of optimism, Alex C. Karp, Co-Founder and CEO of Palantir Technologies, stated, "114% - our Rule of 40 score! These results make undeniable the transformational impact of using AIP to compound AI leverage. Year-over-year growth in our U.S. business surged to 77%, and year-over-year growth in U.S. commercial climbed to 121%. We are yet again announcing the highest sequential quarterly revenue growth guide in our company's history, representing 61% year-over-year growth." Karp's emphasis on transformational growth underscores the company's relentless pursuit of expanding and optimizing its artificial intelligence platforms.
Dividends and Share Repurchases
At this juncture, no official announcements regarding Palantir's dividend policy or share repurchase program were made. However, the company’s optimized cash position and free cash flow indicate a conducive environment for potential shareholder returns in the future.
Palantir Technologies Inc Stock Forecast
Considering the robust financial performance, strategic initiatives, and emerging growth opportunities, Palantir's stock exhibits promising potential. The current market capitalization stands at approximately $56.16 billion, reflecting the market's optimistic outlook on its forward trajectory.
Based on fundamental analysis, including financial performance and emerging developments, a high stock price projection is envisaged to reach upwards of $45, while a conservative low estimate may hover around $25. These projections are contingent upon market dynamics and Palantir's ability to sustain its operational momentum.
Conclusion
Palantir's third-quarter results underscore a transformative period, marked by soaring growth and strategic excellence. Its diversified revenue streams, bolstered by strong domestic and commercial traction, position the company favorably within the realm of technological sophistication. As Palantir marches forward, its dedication to innovation and client-centric approaches will likely underpin its future successes as a prominent player in the technology landscape.
