Palantir Technologies is an American company that helps organizations make sense of big data. Founded in 2003 by Peter Thiel, Stephen Cohen, Joe Lonsdale, and Alex Karp, it’s based in Denver, Colorado. Palantir creates software platforms like Palantir Gotham for intelligence and defense, Palantir Foundry for data analysis, Palantir Apollo for continuous delivery, and Palantir AIP for AI solutions.
Originally focused on U.S. federal agencies, Palantir has expanded to work with international governments, local governments, and private companies. Their software helps these organizations integrate and analyze large amounts of data to make decisions quickly.
Palantir plays a crucial role in the AI industry, with its technology being used in various fields like defense, healthcare, and manufacturing. The company has seen strong financial growth and has a positive outlook for the future.
Palantir Fiscal Q3 2025
Palantir Technologies (PLTR) its U.S. commercial revenue grew 121% year-over-year in Q3 2025, with total revenue up 63%.
Also, the company expects revenue to grow 61% year-over-year and U.S. commercial revenue to again rise 121%. Full-year 2025 revenue guidance has been raised to reflect a 53% year-over-year increase.
Highlights
- U.S. revenue grew 77% year-over-year and 20% quarter-over-quarter to $883 million.
- U.S. commercial revenue grew 121% year-over-year and 29% quarter-over-quarter to $397 million.
- U.S. government revenue grew 52% year-over-year and 14% quarter-over-quarter to $486 million.
- Revenue grew 63% year-over-year and 18% quarter-over-quarter to $1.181 billion.
- Closed 204 deals of at least $1 million, 91 deals of at least $5 million, and 53 deals of at least $10 million.
- Closed a record-setting $2.76 billions of total contract value (“TCV”), up 151% year-over-year.
- Closed a record-setting $1.31 billion of U.S. commercial TCV, up 342% year-over-year.
- Customer count grew 45% year-over-year and 7% quarter-over-quarter
- Cash, cash equivalents, and short-term U.S. Treasury securities of $6.4 billion
Guidance
Palantir expects Q4 2025 revenue between $1.327 and $1.331 billion, with adjusted operating income of up to $699 million.
However, the company has raised its guidance for 2025, projecting total revenue up to $4.4 billion, U.S. commercial revenue over $1.433 billion (a 104% increase) and free cash flow between $1.9 and $2.1 billion.
Boards Statements
Alexander C. Karp, Co-Founder and Chief Executive Officer of Palantir Technologies, emphasized that despite its remarkable progress, the company remains at the very beginning of its journey. In Q3, it achieved a record-breaking $1.2 billion in revenue, a 63% year-over-year increase, and $476 million in profit, the highest in its history.
However, its U.S. commercial business has more than doubled over the past year, growing 121% to $397 million in the latest quarter. Also, this segment is described as a juggernaut, poised to become one of the most significant business narratives in modern American economic history.
Meanwhile, the company’s path toward a universal AI platform has been shaped by a deep focus on solving specific, complex challenges for a diverse customer base. Interestingly, Palantir’s growth has been fueled not by rapid hiring but by maintaining constraints.
Impact on the Stock Market
Despite beating earnings and revenue expectations in Q3 2025 and raising its full-year guidance, Palantir’s stock fell 7%. This drop is due to investor concerns about its high valuation, profit-taking after a strong run-up, and cautious sentiment around the sustainability of its rapid growth.
The drop reflects a “sell the news” reaction, even as the company continues to deliver strong performance.
