Palantir (PLTR) Q3 earnings 2025

palantir reported quarterly results It beat analysts’ estimates and offered better-than-expected guidance for the fourth quarter, attributing much of its strength to artificial intelligence. The stock rose about 1% in extended trading.

Here’s how the company performed compared to LSEG forecasts

earnings per share: 21 cents corrected, 17 cents expected

Income: $1.18 billion, expected $1.09 billion

Palantir, which makes analytics tools for large companies and government agencies, said it expects revenue of about $1.33 billion for the current period, exceeding the $1.19 billion analysts expected, according to LSEG.

The optimistic guidance comes even as the government shutdown enters its second calendar month and potentially threatens some key contracts. Revenue for Palantir’s U.S. public business reached $486 million, up 52% ​​from the previous quarter.

Government sales, particularly from military institutions, have been central to Palantir’s continued rise. Over the years, Palantir has consistently outperformed major government contractors and recently landed a contract worth up to $10 billion with the U.S. Army.

Palantir has also faced criticism over how its tools are used by government agencies, including U.S. Immigration and Customs Enforcement.

Total revenue in the quarter surpassed $1 billion for the second consecutive quarter, up 63% from $725.5 million a year ago. Net income more than tripled to $475.6 million, or 18 cents per share, from $143.5 million, or 6 cents per share, the year before.

For the full year, Palantir expects sales of about $4.4 billion, beating 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 US commercial business more than doubled to $397 million. The total contract value of U.S. trade agreements more than quadrupled to $1.31 billion. Over the past few weeks, the company has announced new partnerships. Snowflake, Lumen And Nvidia.

Retail investors helped push Palantir’s soaring stock price to new highs. Shares have risen more than 170% this year, pushing the company’s market value to more than $490 billion and making it among the most valuable tech names in the world.

Analysts have expressed concerns about the stock trading at an excessive rate relative to tech giants that generate much more revenue. In a letter to shareholders, CEO Alex Karp called out “detractors” who were “left in a kind of deranged and self-destructive daze.”

“The reality is that Palantir has made it possible for retail investors to achieve rates of return previously limited to the most successful venture capitalists in Palo Alto,” he wrote. “And we did this through distinctive and significant growth.”

WRISTWATCH: Prosecutor Davidson’s Luria is on Palantir