Palantir Boosts Q3 Revenue: 121% U.S. Growth, Raises 2025 Outlook

Bassyonni

ago 7 hours

Palantir Boosts Q3 Revenue: 121% U.S. Growth, Raises 2025 Outlook

Palantir Technologies Inc. has posted impressive financial results for the third quarter of 2025. The company announced substantial growth, particularly within its U.S. market, indicating a stronger presence in artificial intelligence-driven solutions.

Q3 2025 Financial Highlights

For the quarter ending September 30, 2025, Palantir reported significant revenue gains:

Total Revenue: $1.181 billion, a 63% increase year-over-year.
U.S. Revenue: $883 million, reflecting a 77% increase year-over-year and a 20% rise quarter-over-quarter.
U.S. Commercial Revenue: $397 million, up 121% year-over-year and 29% quarter-over-quarter.
U.S. Government Revenue: $486 million, a 52% growth year-over-year.

Contract Performance

Palantir’s contract performance in Q3 2025 has also set new records:

Closed 204 deals of at least $1 million.
91 deals were worth $5 million or more.
53 deals surpassed $10 million.
Achieved a total contract value (TCV) of $2.76 billion, marking a 151% increase year-over-year.
U.S. commercial TCV reached $1.31 billion, a leap of 342% year-over-year.

Operational Metrics

Palantir’s operational metrics continue to reflect robust growth:

GAAP income from operations rose to $393 million, representing a 33% margin.
Adjusted income from operations stood at $601 million, translating to a margin of 51%.
GAAP net income was reported at $476 million, a 40% margin.
Cash from operations totaled $508 million, reflecting a 43% margin.
Adjusted free cash flow was $540 million, indicative of a 46% margin.

Future Outlook for 2025

Looking ahead, Palantir has adjusted its revenue guidance for the remainder of 2025:

Projected revenue for Q4 2025: between $1.327 billion and $1.331 billion.
Full-year revenue guidance raised to between $4.396 billion and $4.400 billion.
U.S. commercial revenue target adjusted to exceed $1.433 billion, estimating a growth rate of at least 104%.
Adjusted income from operations for the year projected at $2.151 billion to $2.155 billion.
Adjusted free cash flow guidance raised to between $1.9 billion and $2.1 billion.

Leadership Commentary

Alex C. Karp, Co-Founder and CEO of Palantir, attributes this growth to the company’s emphasis on its artificial intelligence platform. Karp noted, “114% – our Rule of 40 score! These results highlight the transformative power of AI.”

These encouraging results underscore Palantir’s strategy in leveraging artificial intelligence for business growth and market penetration, enhancing its outlook for 2025.

Conclusion

In summary, Palantir Technologies continues to demonstrate remarkable growth in both revenue and operational metrics. With a strong outlook for the future, the company is well-positioned to enhance its market presence.