Summary
Palantir Technologies reported FY2025 Q3 revenue of $1.18 billion, up 62.8% from the prior-year quarter. The U.S. business drove the upside. U.S. revenue grew 77% year-over-year and 20% quarter-over-quarter. U.S. commercial revenue grew 121% year-over-year and 29% quarter-over-quarter. U.S. government revenue grew 52% year-over-year and 14% quarter-over-quarter. The quarter included 204 deals of at least $1 million, 91 deals of at least $5 million, and 53 deals of at least $10 million. Total contract value reached $2.76 billion, up 151% year-over-year. U.S. commercial total contract value was $1.31 billion, up 342% year-over-year. U.S. commercial remaining deal value was $3.63 billion, up 199% year-over-year and 30% quarter-over-quarter.
Profitability expanded sharply. Gross profit was $973.78 million, up 68.2%. Gross margin was 82.4%, up 2.7 percentage points from the prior-year quarter. Operating income was $393.26 million, up 247.6%. Operating margin was 33.3%, up 17.7 percentage points. Net income attributable to common stockholders was $475.60 million, up 231.4%. Diluted EPS was $0.18, up $0.12. Adjusted income from operations was $601 million, a 51% margin. Adjusted EBITDA was $606.5 million, a 51% margin. The Rule of 40 score was 114%.
Cash generation stayed robust. Operating cash flow was $507.66 million, up 20.9%. Capital expenditures were $6.79 million, up 70.4%. Adjusted free cash flow was $540 million, a 46% margin. Deferred revenue was $730.40 million, up 18.7%. Remaining performance obligations were $2.60 billion, up 62.5%. Customer count grew 45% year-over-year and 7% quarter-over-quarter. Palantir had 911 customers at September 30, 2025, compared with 629 a year earlier. Average revenue from the top twenty customers over the trailing twelve months was $83.0 million, up 38% from $60.1 million.
Mix remains concentrated. For the nine months ended September 30, 2025, 55% of revenue came from government customers and 45% from commercial customers. U.S. customers generated 73% of nine-month revenue, while non-U.S. customers generated 27%. For the three months ended September 30, 2025, government revenue grew 55% and commercial revenue grew 73%, according to the MD&A. For the nine months, government revenue grew 50% and commercial revenue grew 51%. Large government customers face uncertainties around budgets, spending levels, timing, spending priorities, and regulatory and policy changes. Many contracts contain termination for convenience provisions. Palantir also conducts pilots and bootcamps at its own expense and without a guarantee of future returns, and those investments may not convert into revenue.
Guidance points to continued momentum. For Q4 2025, Palantir guided revenue to between $1.327 billion and $1.331 billion, and adjusted income from operations to between $695 million and $699 million. The Q4 revenue guide represents 61% year-over-year growth. The Q4 U.S. commercial revenue guide represents 121% year-over-year growth. For full year 2025, the company raised revenue guidance to between $4.396 billion and $4.400 billion. It raised U.S. commercial revenue guidance to in excess of $1.433 billion, representing a growth rate of at least 104%. Full year adjusted income from operations guidance was raised to between $2.151 billion and $2.155 billion. Full year adjusted free cash flow guidance was raised to between $1.9 billion and $2.1 billion. Palantir continues to expect GAAP operating income and net income in each quarter of fiscal 2025. Risks include a long and unpredictable sales cycle, complex and lengthy implementations, macroeconomic conditions, geopolitical tensions, interest rates, monetary policy, foreign currency fluctuations, and tariffs. Other risks in the filings include demand for the platforms, the ability to increase new customers and revenue from customers, the ability to retain and expand the customer base, the fluctuation of results on a quarterly basis, and seasonality. The company also flags potential issues from artificial intelligence in its platforms and any breach or access to company, customer, or third-party data.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2025 | Q2 FY2025 | QoQ | Q3 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.18B | $1.00B | +17.7% | $725.5M | +62.8% |
| Gross profit | $973.8M | $810.8M | +20.1% | $578.9M | +68.2% |
| Gross margin | 82.5% | 80.8% | +1.7 pp | 79.8% | +2.7 pp |
| Research & development | $144.2M | $135.0M | +6.8% | $117.6M | +22.7% |
| Sales & marketing | $274.6M | $243.8M | +12.7% | $209.5M | +31.1% |
| General & administrative | $161.7M | $162.6M | -0.6% | $138.7M | +16.6% |
| Total operating expenses | $580.5M | $541.4M | +7.2% | $465.7M | +24.6% |
| Operating income (loss) | $393.3M | $269.3M | +46.0% | $113.1M | +247.6% |
| Operating margin | 33.3% | 26.8% | +6.5 pp | 15.6% | +17.7 pp |
| Net income (loss) | $475.6M | $326.7M | +45.6% | $143.5M | +231.4% |
| Net margin | 40.3% | 32.5% | +7.7 pp | 19.8% | +20.5 pp |
| Diluted EPS | $0.18 | $0.13 | +$0.05 | $0.06 | +$0.12 |
| Customers | 911 | 849 | +7.3% | 629 | +44.8% |
Risks
Top three customers together accounted for 16% of revenue for the nine months ended September 30, 2025 and 17% for the nine months ended September 30, 2024. Certain significant customers have reduced spend or terminated agreements, and the company may need to refund previously paid amounts if relationships change.
Large government customers are subject to budget and spending uncertainties, changes in timing and spending priorities, and regulatory and policy changes. As of December 31, 2024, total remaining deal value was $5.4 billion, of which $2.3 billion was government; the U.S. federal government cannot exercise contract options more than one year in advance.
The company historically has not realized all revenue from the full deal value of customer contracts and may not do so in the future. Many contracts are subject to termination for convenience, renegotiation, or customer option exercise risk, which can reduce anticipated revenue.
The company and its competitors are investing more significantly in AI, including machine learning, large language, and generative or agentic AI models. Competitors may adopt and implement AI more successfully or quicker than the company, and customers may be reluctant to purchase products incorporating generative AI, which could harm demand for AIP.
Sales efforts involve considerable time and expense, and the sales cycle often lasts six to nine months but can extend to a year or more. A large portion of sales is typically closed in the last several weeks of a quarter, making results difficult to predict and causing quarterly fluctuations.
Historically, the first quarter generally has relatively lower sales, with sales increasing in each subsequent quarter and substantial increases in Q3 and Q4. The U.S. federal government's September 30 fiscal year end can impact Q3, and seasonality may cause fluctuations in results of operations and cash flows.
Adverse economic conditions or reduced technology spending may cause customers to defer, reduce, or forego purchases. The company cites heightened interest rates, monetary policy changes, foreign currency fluctuations, tariffs, and geopolitical tensions including Russia-Ukraine and Middle East conflicts; MD&A states current macroeconomic conditions have impacted and may continue to adversely impact customers.
The company is highly dependent on Alexander Karp, CEO, and other key personnel, and all executive officers and many key personnel are at-will employees. Hiring and retaining qualified personnel, especially engineering and sales personnel, is highly competitive and could require significant costs or equity compensation.
The multi-class structure, Founder Voting Trust Agreement, and Founder Voting Agreement concentrate voting power with the Founders. The Ownership Threshold is 100,000,000 Corporation Equity Securities, a small minority of the 2,383,314,028 shares of common stock outstanding as of September 30, 2025, creating a separation between voting power and economic interests and potential conflicts of interest.
The company has made and may continue to make strategic investments in privately-held and publicly-traded companies and alternative investments and may not realize a return. Some early-stage Investee customers filed for bankruptcy or terminated contracts, and MD&A notes other income benefited from unrealized gains and upward adjustments in privately-held securities.
The business is subject to complex and evolving U.S. and non-U.S. laws regarding privacy, data protection, security, technology protection, and AI, including FASA and the EU AI Act. Unfavorable outcomes in legal, regulatory, and administrative proceedings could harm operations.
Unfavorable news or social media coverage, activist criticism of government and sensitive-industry customers, and public protests may damage brand and reputation. Confidentiality obligations may limit the company's ability to respond, potentially impairing customer, employee, and investor relationships.
MD&A describes increases in stock-based compensation expense and related employer payroll taxes, which are recurring costs that can pressure margins and fluctuate with the company's stock price. The risk factor list also flags the amount and timing of stock-based compensation as a factor in quarterly results fluctuations.
SaaS KPIs
All quarters →Adjusted Operating Margin
Adjusted Free Cash Flow Margin
Adjusted free cash flow
Adjusted income from operations
Adjusted EBITDA Margin
Total Customers
Adjusted EBITDA
Contribution Margin
Deals of at least $1 million
Deals of at least $10 million
Deals of at least $5 million
Customer count growth
U.S. Commercial Remaining Deal Value (RDV)
Cash from operations
Gross Margin (excluding stock-based compensation)
Total Contract Value (TCV)
Cash from Operations Margin
U.S. Commercial TCV
Summary, forecast, risks and KPIs are extracted from Palantir Technologies Inc.'s SEC filings for Q3 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.