By Jordan Grim • November 04, 2025 • 08:11 AM (PDT)
By Jordan Grim • November 04, 2025 • 08:11 AM (PDT)
Palantir exceeded third-quarter estimates and issued strong guidance, which it attributed to the adoption of its artificial intelligence software platform.
Government sales, which have been a key driver of Palantir’s growth, rose 52% from a year earlier.
Palantir’s shares have surged more than 170% this year, but some analysts have raised concerns about the stock’s elevated multiples.
Palantir released quarterly results that beat analysts’ estimates and provided better-than-expected guidance for the fourth quarter, largely crediting artificial intelligence.
The stock, which has increased 25-fold in the past three years, initially rose in extended trading but then fell about 4%.
The company’s performance compared to LSEG estimates was as follows:
Palantir, which makes analytics tools for large companies and government agencies, said it expects revenue of approximately $1.33 billion for the current period, higher than the $1.19 billion expected by analysts, according to LSEG.
This optimistic guidance comes as a potential government shutdown continues into a second calendar month, potentially jeopardizing some key contracts. Revenue from Palantir’s U.S. government business rose 52% to $486 million this quarter compared to a year earlier.
Government sales, particularly from military agencies, have been a key driver of Palantir’s consistent growth. In recent years, Palantir has consistently outbid larger, established government contractors, and recently secured a contract with the U.S. Army worth up to $10 billion. Palantir has also faced criticism regarding how its tools are being used by government agencies, including U.S. Immigration and Customs Enforcement.
Total revenue in the quarter more than doubled to over $1 billion, a 63% increase from $725.5 million a year earlier, marking the second consecutive quarter of such growth. Net income more than tripled to $475.6 million, or 18 cents per share, up from $143.5 million, or 6 cents per share, a year ago. For the full year, Palantir now expects sales of approximately $4.4 billion, exceeding Wall Street’s estimate of $4.17 billion. The company also raised its full-year free cash flow outlook to between $1.9 billion and $2.1 billion.
Palantir’s U.S. commercial revenue surged to $397 million, more than doubling from the previous period. The total contract value for U.S. commercial deals more than quadrupled to $1.31 billion. In recent weeks, the company announced new partnerships with Snowflake, Lumen, and Nvidia.
Retail investors have helped propel PLTR Stock price to new heights. Shares have surged more than 170% this year, giving the company a market capitalization of over $490 billion and placing it among the world’s most valuable technology companies.
Analysts have expressed concerns about the stock, which is trading at a much higher multiple than larger technology companies with significantly more revenue. In a letter to shareholders, CEO Alex Karp lashed out at “critics” who are “trapped in a kind of madness and self-destructive delusion.” He wrote, “The reality is that Palantir has made it possible for retail investors to achieve return rates that were previously only available to the most successful venture capitalists in Palo Alto.” “And we’ve done this through real and tangible growth.”
In an interview with CNBC’s Morgan Brennan on Monday, Karp acknowledged that there is a lot of hype in the AI market right now and that some companies will ultimately suffer because of it.
Karp said, “The strong companies will get stronger, and those who are just pretending to be doing something will disappear very quickly.”