Earnings

🧠 Palantir (PLTR) Q3 2025 Earnings — Core Brief Edition

Core-Brief

04 Nov 2025 — 3 min read

Headline: Record +63% revenue growth with Rule of 40 = 114; US Commercial +121% YoY; guidance raised on revenue and profitability as AIP deployments scale across enterprises.

Key Metrics 📊

GAAP revenue: $1.181B (+63% YoY, +18% QoQ).
Adjusted gross margin: 84%.
Adjusted income from operations: $601M (51.0% margin).
GAAP operating income: $393M (33.0% margin).
GAAP net income: $476M (40.0% margin); GAAP EPS: $0.18.
Adjusted EPS: $0.21.
Adjusted FCF: $540M (46.0% margin); TTM adj. FCF: $2.0B (first time).
TCV bookings (record): $2.8B (+151% YoY).
Deals closed: 204 ≥ $1M; 91 ≥ $5M; 53 ≥ $10M.
Customers: 911 (+45% YoY, +7% QoQ).
Net dollar retention: 134% (+600 bps QoQ).
Remaining deal value: $8.6B (+91% YoY, +21% QoQ); RPO: $2.6B (+66% YoY, +8% QoQ).
Rule of 40: 114 (up +20 pts QoQ; +46 pts YoY).

Segment & Strategy Highlights 🧭

Commercial revenue: $548M (+73% YoY, +22% QoQ).
- US Commercial: $397M (+121% YoY, +29% QoQ); $1.3B TCV (+342% YoY).
- International Commercial: $152M (+10% YoY, +5% QoQ).
- US Commercial now ~34% of total revenue.
Government revenue: $633M (+55% YoY, +14% QoQ).
- US Gov: $486M (+52% YoY, +14% QoQ).
- International Gov: $147M (+66% YoY, +16% QoQ).
Strategic commercial contracts: $2.9M in Q3; guided $2–$4M for Q4; <0.5% of FY25 revenue.

Product, Tech, AI 🚀

AIP FDE (native development agent) automates data hookup/transform, ontology creation, and app building—driving materially faster deployments (management cited migrations done in days).
AI Hive Mind coordinates agent “swarms” for problem-solving and executable proposals, integrated with ontology; used for supply-chain fixes and mission planning (Gaia/Maverick).
Edge Ontologies enable AIP on mobile/embedded hardware (drones/robots).
US Army directive: organization-wide consolidation on Vantage (built on Foundry/AIP), enabling legacy sunset and data-driven decisioning.

Guidance / Outlook 🔭

Q4 2025 revenue: $1.327–$1.331B (midpoint $1.329B, +13% QoQ, +61% YoY).
Q4 adjusted income from operations: $695–$699M.
FY 2025 revenue (raised): $4.396–$4.400B (midpoint $4.398B, +53% YoY).
FY 2025 US Commercial (raised): > $1.433B (≥+104% YoY).
FY 2025 adjusted income from operations (raised): $2.151–$2.155B.
FY 2025 adjusted FCF: $1.9–$2.1B.
Expect GAAP operating income and net income in each quarter of 2025; FY25 Rule of 40 ~102.

What Management Said — “What we’re doing & what’s next” 🧩

Doing now: Scaling enterprise-wide AIP rollouts that drive unit-economics improvements; record TCV and NDR 134% underscore expanding customer value. Sustained momentum across US Government and allies; US Commercial is the fastest-growing engine.
Next: Push deeper into enterprise autonomy—closed-loop evolution (Hive Mind ideation → FDE-built apps → production); expand Edge deployments; maintain US-led growth while pursuing targeted international wins (Asia, Middle East). Continue product investment and elite technical hiring while staying durably GAAP profitable.

Q&A Highlights 💬

Sales cycles/Bootcamps: Customers are skipping single use-cases and reorganizing company-wide around AIP, seeking rapid, public-market “private-equity-like” transformations measured in months, not years.
Why Palantir now: Network effects from visible impact; enterprises recognize that ontology + agents + production apps are required for real AI ROI—driving larger, faster enterprise agreements (e.g., 8× ACV expansion in 5 months).
Capacity & productivity: AIP FDE is a force-multiplier—headcount up modestly while revenue up +63%; FDE is now also customer-facing to accelerate adoption depth.
Geo mix & pipeline: US remains the growth locus; Europe softer. Government pipeline healthy (e.g., continued growth areas like Maven/NGC2); no specific contract details provided.

Balance Sheet & Capital 💼

Cash & equivalents: $6.4B.
Share repurchase: 2.6M shares YTD; $880M authorization remaining.

Bottom Line ✅

AIP-led, enterprise-wide deployments are compounding into record bookings, expanding profitability, and raised FY25 guidance. With agents + ontology at the core, Palantir is positioning for continued US-led growth while scaling edge and mission-critical use cases.