Live: Palantir Earnings Coverage

Palantir Technologies turned in one of the most explosive quarters in its history, with management calling the results “arguably the best any software company has ever delivered.” Demand for the Palantir Artificial Intelligence Platform (AIP) powered massive gains in revenue, margins, and deal flow across both commercial and government segments.

The company posted $1.18 billion in revenue, up 63% year over year and 18% sequentially, while achieving a record 51% adjusted operating margin. That combination drove Palantir’s Rule of 40 score to an unprecedented 114, a full 20 points higher than the prior quarter. U.S. revenue rose 77%, underscoring Palantir’s dominance in its home market.

Total contract value (TCV) reached a record $2.8 billion, up 151% year over year, with 204 deals worth $1 million or more — including 53 worth $10 million or more. Palantir’s customer count climbed 45% to 911, and net dollar retention rose to 134%. The company ended the quarter with $6.4 billion in cash and generated $540 million in adjusted free cash flow.

The U.S. commercial business remained the growth engine, surging 121% year over year to $397 million in quarterly revenue and $1.3 billion in TCV. Government revenue rose 52% year over year to $486 million, highlighted by a U.S. Army directive to consolidate its data operations on Palantir’s Vantage platform.

CEO Alex Karp said the performance proves Palantir has entered a new era of operational leverage. “A normal enterprise company should not have a Rule of 40 above 100,” Karp said. “There’s a massive part of the AI market that actually cares about value creation — and that’s the part we own.”

Chief Revenue Officer Ryan Taylor added that customer behavior has fundamentally changed: “Enterprises are no longer asking for pilot projects. They’re asking how to reorganize their entire company around AIP.”

Chief Technology Officer Shyam Sankar said that Palantir’s unique “ontology-first” design continues to separate it from the competition. “Realizing value from AI in the enterprise requires the elegant integration of data, workflow, and software — and that’s only possible with ontology,” he explained.

Looking ahead, Palantir guided to Q4 revenue of $1.327–$1.331 billion and FY2025 revenue of roughly $4.4 billion, representing 53% annual growth. The company expects continued GAAP profitability and up to $2.1 billion in adjusted free cash flow for the full year.

In Karp’s words, “These aren’t just strong results — they’re transformative results. We’re giving America, both in industry and in government, a massive and unfair advantage.”

Earnings call will be live shortly and will post updates on this page. Stay tuned!

With 204 deals $1 M and 530 U.S. commercial customers (+65 % YoY), Palantir continues to turn AIP into the connective tissue of enterprise AI.

U.S. Commercial remains the growth flywheel.
Revenue in that segment surged 121 % YoY and now represents over half of total company sales.

Palantir added dozens of Fortune 500 clients re-platforming core operations on AIP, the clearest sign yet this isn’t just “pilot” adoption.

Government still rock solid.

Revenue climbed 52 % YoY, led by multi-year Army and Space Force contracts.
Management says its government pipeline remains “the deepest in company history,” giving 2026 visibility even as commercial demand explodes.

• Revenue acceleration back above 60 % YoY.
• GAAP EPS up to $0.18 (vs $0.16 prior).
• Rule of 40 surged to 114 % from 94 %.
• FY guidance raised for both revenue and profitability.
• Deal volume and customer growth both record highs.

“Our AI Platform is rapidly becoming mission-critical infrastructure for institutions around the world.” – CEO Alex Karp

Karp emphasized the “industrialization of AIP,” highlighting how customers are deploying multiple modules enterprise-wide to shorten time to value and increase operational returns. CFO Dave Glazer noted that Palantir continues to invest aggressively in U.S. expansion while maintaining cash flow discipline ($601 M adj. operating income with 57 % FCF margin; page 22).

Shares are up about 3% after hours as Palantir posted another strong quarter of accelerating U.S. commercial growth and expanding margins.

Headline results

Guidance outlook:  Raised – Palantir now expects FY 2025 revenue of $4.36 – $4.40 billion, up from prior $4.17 B guidance, and adjusted operating income of $2.15 – $2.16 billion. FY 2026 commentary implies sustained 20 %+ top-line expansion into next year.

This was another textbook quarter for Palantir’s compounding story. Revenue surged 63 % YoY, well ahead of expectations, powered by 121 % YoY U.S. commercial growth and a 77 % YoY increase in U.S. revenue overall. Operating leverage remains exceptional, with adjusted operating margin at 51 % and free cash flow margin at 57 % (page 22). The stock’s modest post-market gain reflects both strong execution and already-elevated expectations following last quarter’s breakout.

• Rule of 40: Palantir’s score climbed to 114 %, among the highest in enterprise software.

• Customer base: U.S. commercial customers up 65 % YoY to 530, total customer count up 46 % YoY to 742,

• Deal activity: 204 deals ≥ $1 M, including 91 ≥ $5 M and 53 ≥ $10 M (page 25).

• Cash position: $6.4 B in cash, no debt.

Palantir cleared a high bar with emphatic beats on both revenue and EPS, reinforcing its status as one of the cleanest growth-and-profitability stories in enterprise AI. With AIP adoption expanding and guidance moving higher, the company’s Rule-of-40 leadership cements its narrative as the benchmark for profitable AI infrastructure at scale.