Palantir Delivers Explosive Q4 2025 Results, With U.S. Commercial Revenue Up 137% YoY and Total Revenue Growing 70%; FY 2026 Outlook Far Exceeds Expectations

Palantir Technologies Inc. (NASDAQ: PLTR) today reported financial results for the fourth quarter and full fiscal year ended December 31, 2025. Palantir Shatters Expectations With Q4 2025 Results, Posting 137% YoY U.S. Commercial Growth and Forecasting Another Breakout Year in 2026!

“Palantir’s Rule of 40 score has reached an exceptional 127%. In the most recent quarter, U.S. revenue increased 93% year over year, while U.S. commercial revenue grew 137% year over year. We are also issuing full-year 2026 revenue guidance of 61% year-over-year growth. These results reinforce that Palantir remains a category of one. We are uniquely focused on scaling the operational leverage unlocked by rapid advances in AI models—an approach we identified early as ‘commodity cognition,’ long before it entered the broader conversation,” said Alex C. Karp, Co-Founder and Chief Executive Officer of Palantir Technologies.

Q4 2025 Highlights

Palantir delivered strong fourth-quarter performance, driven by exceptional growth in its U.S. commercial and government businesses.

• U.S. revenue increased 93% year over year and 22% quarter over quarter to $1.076 billion.

• U.S. commercial revenue surged 137% year over year and 28% quarter over quarter to $507 million, while U.S. government revenue grew 66% year over year and 17% quarter over quarter to $570 million.

• Total revenue rose 70% year over year and 19% quarter over quarter to $1.407 billion.

Palantir continued to see significant commercial momentum and large-deal activity during the quarter:

• The company closed 180 deals of at least $1 million, 84 deals of at least $5 million, and 61 deals of at least $10 million.

• Total contract value (TCV) reached a record $4.262 billion, up 138% year over year, including record U.S. commercial TCV of $1.344 billion, up 67% year over year.

• U.S. commercial remaining deal value (RDV) grew to $4.38 billion, representing 145% year-over-year and 21% quarter-over-quarter growth.

• Customer count increased 34% year over year and 5% quarter over quarter.

Profitability and cash generation remained exceptional:

• GAAP income from operations was $575 million, reflecting a 41% operating margin, while adjusted income from operations reached $798 million, representing a 57% margin.

• GAAP net income totaled $609 million, or a 43% margin.

• Cash from operations was $777 million, representing a 55% margin, and adjusted free cash flow reached $791 million, or a 56% margin.

• The company achieved a Rule of 40 score of 127%.

Earnings and balance sheet strength remained robust:

• GAAP EPS was $0.24, with adjusted EPS of $0.25.

• Cash, cash equivalents, and short-term U.S. Treasury securities totaled $7.2 billion at quarter end.

 

FY 2025 Highlights

Palantir delivered exceptional full-year performance in 2025, marked by strong revenue growth across its U.S. commercial and government businesses, alongside industry-leading profitability and cash generation.

• U.S. revenue increased 75% year over year to $3.320 billion, driven by continued expansion across both commercial and government customers.

• U.S. commercial revenue grew 109% year over year to $1.465 billion, while U.S. government revenue rose 55% year over year to $1.855 billion.

• Total revenue increased 56% year over year to $4.475 billion.

Profitability and cash flow remained strong throughout the year:

• Cash from operations totaled $2.134 billion, representing a 48% margin, while adjusted free cash flow reached $2.270 billion, or a 51% margin.

• GAAP net income was $1.625 billion, reflecting a 36% margin.

• GAAP income from operations reached $1.414 billion, representing a 32% margin, and adjusted income from operations totaled $2.254 billion, or a 50% margin.

 

Q4 and FY 2025 Financial Summary
(Unaudited)

Outlook

For the first quarter of 2026, Palantir expects continued momentum, with revenue of $1.532 billion to $1.536 billion and adjusted income from operations of $870 million to $874 million.

For the full year 2026, the company expects strong growth and sustained profitability, including revenue of $7.182 billion to $7.198 billion. U.S. commercial revenue is expected to exceed $3.144 billion, representing growth of at least 115% year over year. Palantir also expects adjusted income from operations of $4.126 billion to $4.142 billion and adjusted free cash flow of $3.925 billion to $4.125 billion.

In addition, the company expects to deliver GAAP operating income and GAAP net income in every quarter of 2026, underscoring the durability of its operating model and cash generation.

CEO Letter

A letter to shareholders from Palantir Technologies Inc. CEO Alex Karp is available on the company’s website at
https://www.palantir.com/newsroom/letters.

Earnings Webcast

Palantir will host a live public webcast today at 3:00 PM MT / 5:00 PM ET to discuss financial results for the fourth quarter and fiscal year ended December 31, 2025, as well as the company’s financial outlook. The webcast may be accessed by registering online at
https://palantir.events/palantirearnings-q42025.

A replay of the webcast will be available following the event on Palantir’s Investor Relations website at
https://investors.palantir.com.

An investor presentation, including supplemental financial information and reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, will also be available on the Investor Relations website.

---

[custom-twitter-feeds feed=2]