TLDR
- Palantir CEO Alex Karp defended the company’s work with the Trump Administration and ICE at the New York Times DealBook Summit
- Karp stated Trump is not a fascist and said the president has performed well on immigration and America’s deterrent capacity
- Palantir shares have dropped 10.5% since their last earnings report despite beating Q3 estimates with $1.18 billion in revenue
- The company reported 21 cents earnings per share in Q3, surpassing estimates by 23.5% with a 110% year-over-year increase
- Palantir raised full-year 2025 revenue guidance to $4.398 billion and expects U.S. commercial revenue to grow 104% year-over-year
Palantir Technologies CEO Alex Karp made waves at the New York Times DealBook Summit on Wednesday. He defended his company’s controversial work with the Trump Administration and rejected claims that the president is a fascist.
“I care about two issues: immigration and restoring the deterrent capacity of America,” Karp said. “On those two issues, this president has performed.”
The 58-year-old CEO, who previously identified as a Democrat, called the fascist label “stupid.” He also pushed back against criticism of Palantir’s work with the Department of Homeland Security and ICE.
Karp insisted the company is “absolutely not” creating surveillance tools for the federal government. This comes despite ongoing criticism about the data-sharing tools Palantir has built for various government agencies.
Palantir has secured multiple federal contracts to develop software for U.S. Immigration and Customs Enforcement. These contracts have drawn scrutiny from privacy advocates and civil rights groups.
Palantir Technologies Inc., PLTR
The stock rose 1.4% in midday trading Wednesday. Year-to-date, shares have jumped over 130%, pushing the company’s market cap past $400 billion.
Mixed Performance Since Last Earnings
The rally hasn’t been without bumps. Shares have fallen 10.5% in the month since Palantir’s last earnings report.
The third-quarter results themselves were strong. Palantir reported revenue of $1.18 billion, beating estimates by 8%. This represented a 63% year-over-year increase and 18% sequential growth.
Earnings per share hit 21 cents, crushing the consensus estimate by 23.5%. The figure jumped 110% compared to the same quarter last year.
The performance reflects growing demand for Palantir’s Artificial Intelligence Platform and analytics solutions. Both commercial and government customers are driving this growth.
Profitability metrics improved across the board. The company achieved its highest-ever adjusted operating margin of 51%. Gross margins stayed robust at 82%.
GAAP operating income reached $393 million. GAAP net income came in at $476 million, translating to GAAP EPS of 18 cents.
Strong Cash Generation and Future Outlook
Palantir generated $508 million in cash from operations during the quarter. Adjusted free cash flow hit $540 million.
The company ended Q3 with $6.4 billion in cash, cash equivalents, and U.S. Treasury securities. This gives Palantir plenty of room for future investments and potential acquisitions.
The company’s Rule of 40 score reached 114%. This represents one of the highest scores ever achieved in the software industry.
Fourth-quarter revenue guidance came in at $1.329 billion. This implies 13% sequential growth and 61% year-over-year growth.
Full-year 2025 revenue guidance was raised to $4.398 billion. This represents a 53% increase from 2024 and exceeds previous guidance by $252 million.
U.S. commercial revenue guidance was revised upward to exceed $1.433 billion. This implies at least 104% year-over-year growth.
Palantir expects adjusted income from operations between $2.151 billion and $2.155 billion. Adjusted free cash flow is projected between $1.9 billion and $2.1 billion.
The company continues to expect GAAP operating income and net income in every quarter of 2025. Analysts have trended their estimates upward over the past month, with the consensus shifting 27.53%.
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