Palantir Technologies' AIP Platform Drives 121% Revenue Growth in Q3 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3h ago
0mins
Source: Yahoo Finance
- Surge in Commercial Revenue: Palantir's U.S. commercial revenue soared 121% year-over-year to $397 million in Q3 2025, highlighting the critical role of the AIP platform in driving customer expansions, thereby laying a strong foundation for future growth.
- Optimistic Government Contract Outlook: Although government business is growing more slowly, it is expected to see a 51% year-over-year revenue increase in 2026, driven by rising global defense spending and multi-year modernization programs, potentially leading to larger, longer-term contracts for Palantir.
- Strong Margin Performance: Palantir reported an impressive adjusted operating margin of 51% in Q3, with only a 10% increase in headcount, indicating significant operational leverage achieved through AI-driven engineering support, and is expected to maintain high margins into 2026.
- Valuation Risk: With a forward P/E ratio of 174, Palantir's stock may face volatility despite projected 53% revenue growth to around $4.4 billion in fiscal 2025, as high valuation could lead to sharp corrections if earnings miss expectations.
Analyst Views on PLTR
Wall Street analysts forecast PLTR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PLTR is 192.88 USD with a low forecast of 50.00 USD and a high forecast of 255.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
5 Buy
10 Hold
2 Sell
Hold
Current: 170.960
Low
50.00
Averages
192.88
High
255.00
Current: 170.960
Low
50.00
Averages
192.88
High
255.00
About PLTR
Palantir Technologies Inc. is engaged in building software to assist in counterterrorism investigations and operations. The Company has built four principal software platforms, including Palantir Gotham (Gotham), Palantir Foundry (Foundry), Palantir Apollo (Apollo), and Palantir Artificial Intelligence Platform (AIP). Apollo is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems. Gotham enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants. Foundry transforms the ways organizations operate by creating a central operating system for their data. AIP enables responsible artificial intelligence (AI)-advantage across the enterprise by using primary, core components built to effectively activate large language models and other AI within any organization.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
