Palantir Technologies (PLTR) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 39% year-over-year to $884 million, with U.S. revenue up 55% and U.S. commercial revenue up 71%, now representing 71% of total business and surpassing a $1 billion annual run rate.

• U.S. government revenue increased 45% year-over-year, and the Rule of 40 score rose to 83, reflecting strong growth and profitability.

• Customer count grew 39% year-over-year to 769, with top 20 customers' trailing 12-month revenue up 26%.

• Closed 139 deals of at least $1 million, including 51 of at least $5 million and 31 of at least $10 million; U.S. commercial TCV reached $810 million, up 183% year-over-year.

• Demand for AIP and AI-driven solutions continues to accelerate, driving significant deal volume and customer expansion.

Financial highlights

• Q1 revenue reached $884 million, up 39% year-over-year and 7% sequentially; GAAP net income was $214 million (24% margin), GAAP EPS $0.08, adjusted EPS $0.13.

• Adjusted operating margin was 44%, up 800 basis points year-over-year; adjusted free cash flow was $370 million (42% margin).

• Cash, cash equivalents, and short-term U.S. Treasury securities totaled $5.4 billion at quarter end.

• Net dollar retention increased to 124%, up 400 basis points sequentially.

• Customer count grew 39% year-over-year to 829; U.S. commercial customer count rose 65% year-over-year to 432.

Outlook and guidance

• Q2 2025 revenue expected between $934 million and $938 million; adjusted income from operations between $401 million and $405 million.

• Full-year 2025 revenue guidance raised to $3.89–$3.902 billion (36% growth); U.S. commercial revenue guidance raised to over $1.178 billion (at least 68% growth).

• Adjusted income from operations guidance raised to $1.711–$1.723 billion; adjusted free cash flow guidance to $1.6–$1.8 billion.

• Expects GAAP operating income and net income in each quarter of 2025.

• Rule of 40 score guided to 80 for the full year.