TLDR:
- Palantir’s Q3 2025 revenue jumps with a 77% YoY rise in U.S. business.
- Palantir sets new records with $2.76B in commercial contracts this quarter.
- U.S. commercial revenue rises 121% YoY as Palantir exceeds expectations.
- Strong Q3 2025 financials boost Palantir’s positive Q4 outlook.
- Palantir raises 2025 revenue guidance following a strong third-quarter performance.
Palantir Technologies (NASDAQ: PLTR) reported a strong third quarter in 2025, with significant increases in revenue and commercial deals. The company saw its stock price rise from $207.18 to $209.41, reflecting a 3.35% gain during regular trading.
Palantir Technologies Inc., PLTR
Strong performance in the U.S. market, alongside record-setting commercial contract values, propelled the company’s growth, driving investor confidence.
U.S. Revenue Sees a Massive 77% Year-over-Year Growth
Palantir’s U.S. business experienced robust growth, with revenue rising 77% compared to the same quarter last year. The company generated $883 million from U.S. operations, a 20% increase over the previous quarter. U.S. government revenue contributed $486 million, reflecting a 52% year-over-year increase and a 14% quarter-over-quarter jump.
Palantir’s U.S. commercial segment demonstrated even stronger growth, surging by 121% year-over-year to $397 million. This exceptional performance highlights the company’s growing presence in the commercial sector. The continued focus on high-value contracts and long-term relationships has allowed Palantir to sustain its momentum and exceed market expectations.
Commercial Deals Break Records with $2.76 Billion in TCV
In Q3 2025, Palantir set a new benchmark in terms of commercial contracts, closing a total of $2.76 billion in total contract value (TCV). This represents a 151% year-over-year increase, highlighting the strong demand for Palantir’s software and services. The company also saw a 342% jump in U.S. commercial TCV, which totaled $1.31 billion, marking a historic high for the business.
Palantir closed 204 deals worth at least $1 million, including 91 worth $5 million or more. Of these, 53 deals exceeded $10 million, demonstrating the company’s ability to secure high-value contracts. These achievements significantly contributed to Palantir’s strong financial performance and enhanced the company’s prospects heading into the final quarter of 2025.
Strong Financials and Future Outlook
The company’s financials for Q3 2025 showed strong profitability, with GAAP income from operations reaching $393 million, a 33% margin. Adjusted income from operations was even higher, at $601 million, representing a 51% margin. The company also reported a GAAP net income of $476 million, with an operating cash flow of $508 million and adjusted free cash flow of $540 million.
Looking ahead, Palantir has raised its revenue guidance for the full year 2025 to between $4.396 billion and $4.4 billion. Additionally, the company expects U.S. commercial revenue to surpass $1.433 billion, marking at least a 104% growth rate. Palantir’s outlook for Q4 2025 remains positive, with projections for both revenue and adjusted income from operations to remain strong, signaling continued growth through the end of the year.
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