Palantir Technologies (PLTR) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $1.181 billion, up 63% year-over-year and 18% sequentially, driven by strong U.S. performance and surging demand for enterprise AI solutions.

• U.S. commercial revenue grew 121% year-over-year and 29% sequentially, now representing 34% of total revenue; U.S. revenue was $883 million, up 77% year-over-year.

• Closed 204 deals of at least $1 million, with total contract value reaching $2.8 billion and significant expansion in large enterprise agreements.

• Achieved a Rule of 40 score of 114%, reflecting strong growth and profitability.

• AI platform (AIP) adoption is accelerating, with C-suite-driven transformations and rapid scaling across industries.

Financial highlights

• Adjusted operating margin hit a record 51%, with adjusted income from operations at $601 million; adjusted EPS was $0.21, GAAP EPS $0.18.

• GAAP net income was $476 million (40% margin); adjusted net income was $529 million.

• Adjusted free cash flow for Q3 was $540 million (46% margin); trailing 12 months reached $2 billion for the first time.

• Cash, cash equivalents, and short-term U.S. Treasuries totaled $6.4 billion at quarter-end, with no debt.

• Net dollar retention was 134% in Q3 2025.

Outlook and guidance

• Q4 2025 revenue guidance: $1.327–$1.331 billion; adjusted income from operations: $695–$699 million.

• Full-year 2025 revenue guidance raised to $4.396–$4.400 billion (53% year-over-year growth); U.S. commercial revenue guidance raised to over $1.433 billion (at least 104% year-over-year growth).

• Adjusted income from operations guidance increased to $2.151–$2.155 billion; adjusted free cash flow guidance to $1.9–$2.1 billion.

• Rule of 40 score guidance for full year at 102%.

• Management expects continued revenue growth from both government and commercial segments, with U.S. customers remaining a key driver.