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Sep 30
Palantir Q3 2025 Earnings Report
Palantir reported strong Q3 2025 results with record revenue and significant growth in U.S. commercial operations.
Key Takeaways
Palantir delivered a standout quarter, achieving $1.18 billion in revenue and $476 million in net income. The company saw remarkable growth in U.S. commercial revenue and reported a Rule of 40 score of 114%, highlighting its operational efficiency and growth. Forward guidance was raised across the board, exceeding consensus expectations.
Palantir generated $1.18B in Q3 revenue, growing 63% YoY.
U.S. commercial revenue soared 121% YoY, reaching $397M.
GAAP Net Income was $476M, with strong margins across the board.
The company achieved a Rule of 40 score of 114%, indicating high growth with strong profitability.
Palantir
Palantir
Palantir Revenue by Segment
Palantir Revenue by Geographic Location
Revenue by Segment
Commercial Revenue
CapyFin.comGovernment Revenue
CapyFin.comRevenue by Geographic Location
U.S. Commercial Revenue
CapyFin.comU.S. Government Revenue
CapyFin.com Forward Guidance
Palantir raised full-year guidance for revenue, U.S. commercial growth, adjusted income from operations, and free cash flow, while maintaining expectations for GAAP profitability.
Positive Outlook
- Q4 revenue expected to reach up to $1.331B
- U.S. commercial revenue forecasted to exceed $1.433B for FY25
- FY25 revenue guidance raised to $4.4B
- Adjusted free cash flow guidance raised to $2.1B
- Continued GAAP net income expected in every quarter
Challenges Ahead
- No new major government contract updates mentioned
- Potential macroeconomic and geopolitical risks remain
- Stock-based compensation remains a large expense
- Uncertainty around revenue recognition on some commercial contracts
- Ongoing customer contract termination risk due to convenience clauses
Revenue & Expenses
Visualization of income flow from segment revenue to net income