Palantir posts $1.2b Q3 revenue on strong AI demand
- ByStartupStory | November 4, 2025
Palantir Posts $1.18 Billion Q3 2025 Revenue Driven by Strong AI Demand
Palantir Technologies, the data analytics and software giant, reported robust third-quarter revenue of $1.18 billion for 2025, marking a 63% increase year-over-year and comfortably beating Wall Street estimates of around $1.09 billion. This substantial growth was largely attributed to accelerating demand for Palantir’s AI-powered platforms and services across commercial and government sectors.
The company’s adjusted earnings per share came in at $0.21, surpassing the expected $0.17, representing a 24% upside surprise. Palantir also announced its highest-ever adjusted operating margin of 51%, reflecting operational leverage gained with scale.
A key growth driver was Palantir’s U.S. commercial division, which saw 121% year-over-year revenue growth to $397 million, as more private-sector customers adopted Palantir’s AI-powered Foundry platform for data-driven decision-making and operational intelligence. Total U.S. revenue rose 77% to $883 million, accounting for 75% of total sales, while non-U.S. markets picked up the remaining 25%.
Palantir closed the quarter with 911 customers, a 45% year-over-year increase, including 204 deals worth more than $1 million, signifying strong market penetration. The company also successfully secured large contracts, including 91 deals above $5 million and 53 above $10 million.
Financially, Palantir ended the quarter with a strong balance sheet, holding $6.4 billion in cash and equivalents and no long-term debt. Operating cash flow increased by 20% to $508 million, and adjusted free cash flow rose 24% to $540 million.
For the fourth quarter, Palantir provided optimistic guidance, projecting revenue between $1.327 billion and $1.331 billion, representing a 60% year-over-year increase. Adjusted operating income is expected to grow about 88%, underscoring confidence in continued momentum.
Palantir also raised its full-year 2025 revenue guidance to $4.4 billion, a 53% increase from the previous year, driven by broad AI adoption and contract expansions.
Despite the strong quarter, Palantir’s stock experienced slight after-hours selling, largely due to its premium valuation and concerns about potential impacts from the ongoing U.S. government shutdown, which could delay government contract flow.
In summary, Palantir’s Q3 2025 financial results highlight the company’s dominant position as an AI platform provider, with accelerating revenue growth, expanding margins, and strong customer acquisition fueled by AI-driven solutions across both commercial and government sectors.
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