Palantir Technologies Inc - Class A
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +7.22%.
Did PLTR Beat Earnings? Q1 2025 Results
Palantir Technologies delivered a <a href="https://247wallst.com/investing/2025/05/05/live-earnings-will-palantir-nasdaq-pltr-blow-out-earnings-tonight/">standout first quarter</a>, posting revenue of $883.86 million, up 39.3% year-over-year and ahead of the $862.13 million consensus estimate, while earnings per share of $0.13 edged past the $0.13 consensus by 1.09%. The driving force behind the quarter was an extraordinary acceleration in U.S. commercial demand for Palantir's AI platforms, with U.S. commercial revenue surging 71% year-over-year to $255 million and crossing a $1 billion annual run rate, a milestone CEO Alexander Karp described as evidence of a "tectonic shift" in enterprise AI adoption. U.S. government revenue added to the momentum, climbing 45% year-over-year to $373 million. Profitability metrics were equally compelling, with adjusted operating income reaching $390.71 million at a 44% margin, up sharply from 36% in the year-ago period. Buoyed by the results, Palantir raised its full-year 2025 revenue guidance to $3.89 to $3.90 billion, implying 36% growth, and guided Q2 revenue to $934 to $938 million, signaling continued confidence in its commercial and government pipeline.
- U.S. commercial revenue surpassed $1 billion annual run rate, growing 71% Y/Y
- U.S. government revenue grew 45% Y/Y
- Rule of 40 score of 83%
- Closed 139 deals of at least $1 million, 51 deals of at least $5 million, and 31 deals of at least $10 million
- Highest quarter of U.S. commercial TCV at $810 million, up 183% Y/Y
- Customer count grew 39% Y/Y and 8% Q/Q
- Adjusted operating margin expanded to 44% from 36% Y/Y
“Our Rule of 40 score increased to 83% in the last quarter, once again breaking the metric. We are in the middle of a tectonic shift in the adoption of our software, particularly in the U.S. where our revenue soared 55% year-over-year, while our U.S. commercial revenue expanded 71% year-over-year in the first quarter to surpass a one-billion-dollar annual run rate.”
Palantir CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2025, Palantir expects revenue of $934–$938 million and adjusted income from operations of $401–$405 million. For full year 2025, the company raised revenue guidance to $3.890–$3.902 billion (representing 36% Y/Y growth), raised U.S. commercial revenue guidance to in excess of $1.178 billion (at least 68% growth), raised adjusted income from operations guidance to $1.711–$1.723 billion, raised adjusted free cash flow guidance to $1.6–$1.8 billion, and continues to expect GAAP operating income and net income in each quarter of 2025.
PLTR YoY Financials
PLTR Revenue by Segment
PLTR Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.