Palantir Technologies (PLTR) PLTR Q3 Financial Results Summary
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Palantir Technologies Inc. (PLTR) Q3 2025 Financial Results Summary
Palantir Technologies Inc. (NASDAQ:PLTR) released its financial results for the third quarter ended September 30, 2025, on November 3, 2025. Below is a summary of the key financial metrics and highlights from the report.
Q3 2025 Highlights
- U.S. Revenue:
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Grew 77% year-over-year and 20% quarter-over-quarter to reach $883 million.
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U.S. Commercial Revenue:
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Grew 121% year-over-year and 29% quarter-over-quarter, totaling $397 million.
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U.S. Government Revenue:
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Grew 52% year-over-year and 14% quarter-over-quarter to reach $486 million.
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Total Revenue:
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Grew 63% year-over-year and 18% quarter-over-quarter, amounting to $1.181 billion.
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Contract Activity:
- Closed 204 deals valued at $1 million or more.
- Achieved 91 deals valued at $5 million or more.
- Completed 53 deals valued at $10 million or more.
- Secured a record-setting $2.76 billion in total contract value (TCV), which marks a 151% year-over-year increase.
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Achieved TCV of $1.31 billion in U.S. commercial contracts, up 342% year-over-year.
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Remaining Deal Value (RDV):
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Reached $3.63 billion, up 199% year-over-year and 30% quarter-over-quarter.
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Customer Metrics:
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Increased customer count by 45% year-over-year and 7% quarter-over-quarter.
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Income Metrics:
- GAAP income from operations stood at $393 million, representing a 33% margin.
- Adjusted income from operations reached $601 million, with a 51% margin.
- GAAP net income was $476 million, equating to a 40% margin.
- Cash from operations for the quarter was $508 million, yielding a 43% margin.
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Adjusted free cash flow totaled $540 million, corresponding to a 46% margin.
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Earnings Per Share:
- GAAP EPS recorded at $0.18.
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Adjusted EPS measured at $0.21.
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Cash Reserves:
- Cash, cash equivalents, and short-term U.S. Treasury securities amounted to $6.4 billion.
Q4 2025 Outlook
- Projected Revenue:
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Expected to be between $1.327 billion and $1.331 billion.
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Projected Adjusted Income from Operations:
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Expected to be between $695 million and $699 million.
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Full Year 2025 Revenue Guidance:
- Raised to a range between $4.396 billion and $4.400 billion, indicating an anticipated growth rate of 53% year-over-year.
- U.S. commercial revenue guidance raised to over $1.433 billion, representing an expected growth of at least 104%.
- Adjusted income from operations projection increased to between $2.151 billion and $2.155 billion.
- Adjusted free cash flow guidance adjusted to a range of $1.9 billion to $2.1 billion.
Share Repurchase and Dividend
- In Q3 2025, Palantir repurchased $55.789 million worth of common stock.
- No mention was made regarding the declaration of a quarterly dividend.
Conclusion
Palantir Technologies Inc. has shown significant growth in various metrics in Q3 2025 compared to the same period last year. The guidance for future quarters and the overall revenue adjustments reflect a strong outlook for the company, supported by outstanding performance in operational metrics.
| Amount | Three Months Ended | Nine Months Ended | ||
|---|---|---|---|---|
| September 30, 2025 | 2024 | September 30, 2025 | 2024 | |
| Revenue | $ 1,181,092 | $ 725,516 | $ 3,068,644 | $ 2,037,988 |
| Cost of revenue(1) | 207,307 | 146,639 | 573,211 | 391,457 |
| Gross profit | 973,785 | 578,877 | 2,495,433 | 1,646,531 |
| Operating expenses: | ||||
| Sales and marketing(1) | 274,636 | 209,474 | 754,733 | 599,460 |
| Research and development(1) | 144,191 | 117,555 | 414,123 | 336,376 |
| General and administrative(1) | 161,702 | 138,708 | 487,956 | 411,335 |
| Total operating expenses | 580,529 | 465,737 | 1,656,812 | 1,347,171 |
| Income from operations | 393,256 | 113,140 | 838,621 | 299,360 |
| Interest income | 59,762 | 52,120 | 166,458 | 142,065 |
| Other income (expense), net | 27,483 | -8,110 | 30,906 | -32,790 |
| Income before provision for income taxes | 480,501 | 157,150 | 1,035,985 | 408,635 |
| Provision for income taxes | 3,753 | 7,809 | 12,948 | 17,653 |
| Net income | 476,748 | 149,341 | 1,023,037 | 390,982 |
| Less: Net income attributable to noncontrolling interests | 1,149 | 5,816 | 6,680 | 7,801 |
| Net income attributable to common stockholders | $ 475,599 | $ 143,525 | $ 1,016,357 | $ 383,181 |
| Earnings per share attributable to common stockholders, basic | $ 0.20 | $ 0.06 | $ 0.43 | $ 0.17 |
| Earnings per share attributable to common stockholders, diluted | $ 0.18 | $ 0.06 | $ 0.40 | $ 0.16 |
(1) Includes stock-based compensation expense as follows (in thousands):
| Three Months Ended | Nine Months Ended | |||
|---|---|---|---|---|
| September 30, 2025 | 2024 | September 30, 2025 | 2024 | |
| Cost of revenue | $ 15,789 | $ 13,123 | $ 45,778 | $ 35,941 |
| Sales and marketing | 63,148 | 50,698 | 171,701 | 141,168 |
| Research and development | 35,049 | 30,715 | 98,951 | 87,532 |
| General and administrative | 58,332 | 47,889 | 171,198 | 145,199 |
| Total stock-based compensation | $ 172,318 | $ 142,425 | $ 487,628 | $ 409,840 |
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### Condensed Consolidated Balance Sheets (in thousands)
| Assets | As of September 30, 2025 | As of December 31, 2024 |
|---|---|---|
| Cash and cash equivalents | $ 1,615,967 | $ 2,098,524 |
| Marketable securities | 4,821,850 | 3,131,463 |
| Accounts receivable, net | 1,005,910 | 575,048 |
| Prepaid expenses and other current assets | 142,429 | 129,254 |
| Total current assets | 7,586,156 | 5,934,289 |
| Property and equipment, net | 45,706 | 39,638 |
| Operating lease right-of-use assets | 204,315 | 200,740 |
| Other assets | 277,783 | 166,217 |
| Total assets | $ 8,113,960 | $ 6,340,884 |
| Liabilities and Equity | ||
|---|---|---|
| Current liabilities: | ||
| Accounts payable | $ 67,503 | $ 103 |
| Accrued liabilities | 381,737 | 427,046 |
| Deferred revenue | 316,722 | 259,624 |
| Customer deposits | 368,170 | 265,252 |
| Operating lease liabilities | 46,271 | 43,993 |
| Total current liabilities | 1,180,403 | 996,018 |
| Deferred revenue, noncurrent | 43,901 | 39,885 |
| Customer deposits, noncurrent | 1,570 | 1,663 |
| Operating lease liabilities, noncurrent | 189,165 | 195,226 |
| Other noncurrent liabilities | 10,652 | 13,685 |
| Total liabilities | 1,425,691 | 1,246,477 |
| Palantir’s stockholders’ equity: | ||
| Common stock | 2,383 | 2,339 |
| Additional paid-in capital | 10,747,603 | 10,193,970 |
| Accumulated other comprehensive income (loss), net | 11,537 | -5,611 |
| Accumulated deficit | -4,171,066 | -5,187,423 |
| Total Palantir’s stockholders’ equity | 6,590,457 | 5,003,275 |
| Noncontrolling interests | 97,812 | 91,132 |
| Total equity | 6,688,269 | 5,094,407 |
| Total liabilities and equity | $ 8,113,960 | $ 6,340,884 |