Palantir Technologies Q3 2025 Earnings: Commercial Business Surges, Guidance Raised
Palantir's Q3 2025 revenue rose 63% year-over-year, led by a surge in U.S. commercial demand, and the company raised its full-year guidance.
| Q3 2025 | Reported |
|---|---|
| EPS | $0.18 |
| Revenue | $1.18B |
Figures as reported by the company to the SEC for the quarter ended September 30, 2025. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Net income more than tripled year-over-year to $475.6 million, up from $143.5 million in the same quarter last year, showing profit growing even faster than sales.
- U.S. commercial revenue (sales to non-government businesses) more than doubled, growing 121% year-over-year to $397 million, as more companies adopted Palantir’s AI software platform.
- U.S. government revenue grew 52% year-over-year to $486 million, showing that the commercial surge came alongside continued growth in Palantir’s traditional defense and federal agency business, not instead of it.
- The company raised its full-year 2025 revenue guidance to roughly $4.40 billion, about 53% growth for the year, and raised its fourth-quarter revenue outlook to $1.327-1.331 billion.
- Palantir also raised its full-year guidance for adjusted free cash flow to $1.9-2.1 billion, pointing to growing confidence in turning sales into cash rather than just paper profit.
- A trailing twelve-month gross margin of 84.8% and operating margin of 42.8% show the company keeps a large share of each sales dollar after costs, a pattern typical of software businesses that get more efficient as they grow.
- Return on equity of 37.47% over the past year reflects how effectively the company has been turning shareholders’ invested capital into profit.
- In the shareholder letter accompanying results, CEO Alex Karp framed the quarter’s growth as validation of the company’s bet on AI software after years of investor skepticism about its business model.
Q3 2025 in context
| Metric | Sep 2025 | Sep 2024 | Change |
|---|---|---|---|
| Revenue | $1.2B | $726M | +62.8% |
| Net income | $476M | $144M | +231.4% |
| Free cash flow | $501M | $416M | +20.5% |
| Diluted EPS | $0.18 | $0.06 | +200.0% |
| Gross margin | 82.4% | 79.8% | +2.7 pts |
| Operating margin | 33.3% | 15.6% | +17.7 pts |
| Net margin | 40.3% | 19.8% | +20.5 pts |
Figures for the quarter ended Sep 2025 and the quarter ended Sep 2024, as reported to the SEC.
How the stock took it
Palantir Technologies Inc closed at $207.18 on Nov 3, 2025, the last session before the report, and at $187.90 on Nov 5, 2025, the first session after it — -9.3% across the report.
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Sources: company report · earnings call