TLDR
- Palantir stock climbs as Q4 revenue surges on record U.S. expansion
- U.S. commercial growth explodes 137% as enterprise adoption accelerates
- Strong margins push Palantir to 41% GAAP operating profitability
- Record contract value and cash flow highlight scaling demand
- Full-year 2025 results reinforce a powerful growth outlook for 2026
Palantir (PLTR) stock closed higher at $147.76 as the company reported strong fourth-quarter and full-year results for 2025. The stock advanced as the firm posted rapid revenue expansion across major U.S. segments. The update reinforced Palantir’s position as one of the fastest-growing large-scale software companies.
Palantir Technologies Inc., PLTR
Record U.S. Expansion Supports Quarterly Momentum
Palantir reported sharp U.S. revenue growth that lifted overall performance during the fourth quarter of 2025. The company increased U.S. revenue by 93% year-over-year as demand for its platforms accelerated. It also expanded U.S. commercial sales by 137% as adoption broadened across private-sector clients.
The firm continued strengthening its U.S. government work as segment revenue rose 66% from the prior year. This increase supported higher operational leverage across the quarter and pushed total revenue to $1.407 billion. Palantir recorded quarterly growth of 19% as activity remained strong across all major channels.
The company finalized 180 deals worth at least $1 million as large contracts grew rapidly. It posted record total contract value of $4.262 billion as demand scaled. Additionally, U.S. commercial contract value reached $1.344 billion and set another high.
Financial Margins Improve With Strong Cash Generation
Palantir lifted profitability as margins widened across several key metrics during the quarter. The company posted GAAP operating income of $575 million and achieved a margin of 41%. Adjusted operating income rose to $798 million and produced a 57% margin.
Net income reached $609 million as the firm maintained consistent cost control. The company reported a 43% net margin while it held strong cash generation. Operating cash flow totaled $777 million, supported by disciplined spending.
The quarter produced adjusted free cash flow of $791 million as demand remained strong. Palantir ended the period with $7.2 billion in cash and short-term securities. Furthermore, the organization recorded a Rule of 40 score of 127% during the quarter.
Full-Year Growth Reinforces Strong 2026 Outlook
Palantir delivered sharp full-year expansion as U.S. revenue climbed 75% compared with 2024. The company generated $3.320 billion from the U.S. market and continued scaling enterprise activity. It also lifted U.S. commercial revenue by 109% as adoption expanded.
Government activity supported stable annual momentum as segment revenue increased 55%. Total revenue reached $4.475 billion and jumped 56% year-over-year. Thus, Palantir strengthened its operational base heading into 2026.
Full-year cash flow also increased as operating cash flow reached $2.134 billion. Adjusted free cash flow totaled $2.270 billion and showed sustained efficiency. Moreover, Palantir delivered GAAP net income of $1.625 billion as annual performance accelerated.
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