Palantir 2025 Q3 Earnings Surpasses Expectations with 219% Net Income Growth

Palantir (PLTR), ranked 18th by market capitalization, reported Q3 2025 earnings on Nov 3, 2025. The company exceeded expectations, with revenue surging 62.8% to $1.18 billion and net income jumping 219.2% to $476.75 million. Guidance was raised for FY2025, reflecting strong operational momentum.

Revenue

Palantir’s total revenue surged 62.8% to $1.18 billion in Q3 2025, up from $725.52 million in Q3 2024. This growth was driven by robust demand across both commercial and government sectors, with U.S. commercial revenue expanding 121% year-over-year. The company’s AI-driven solutions and strategic partnerships contributed to outpacing market forecasts.

Earnings/Net Income

Palantir’s EPS soared 233.3% to $0.20 in Q3 2025, compared to $0.06 in Q3 2024. Net income reached $476.75 million, a 219.2% increase from $149.34 million in the prior year. This marked a record high for Q3 net income in six years, reflecting enhanced profitability and operational efficiency. The significant EPS increase underscores strong earnings performance.

Price Action

The stock price of Palantir rose 1.04% during the latest trading day, gained 9.51% over the past week, and surged 10.76% month-to-date.

Post-Earnings Price Action Review

Historical data indicates that buying Palantir’s stock following quarterly revenue beats has been a profitable strategy. Recent quarters, including Q3 2025 (revenue beat of $89.25 million), Q2 2025 ($60.71 million), and Q1 2025 ($56.34 million), show consistent outperformance. While exact 30-day returns for Q3 2025 remain pending, prior quarters demonstrated average gains of +18.4%. Institutional buying, such as a $1.36 million increase by Capital Management Associates, and strategic partnerships with Nvidia have further supported upward momentum.

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CEO Commentary

CEO Alex Karp highlighted Palantir’s “unprecedented” Q3 results, driven by 77% U.S. revenue growth and a Rule of 40 score of 114. He emphasized the company’s focus on “real-world problem-solving” and AI adoption across enterprises, positioning Palantir for sustained growth.

Guidance

Palantir guided to Q4 2025 revenue of $1.329 billion (61% YoY growth) and full-year revenue of $4.398 billion. Adjusted operating income is projected at $2.153 billion, with U.S. commercial revenue guidance raised to exceed $1.433 billion.

Additional News

Recent developments include Wedbush raising its price target to $230, citing potential for a trillion-dollar valuation. Palantir also announced a strategic partnership with Nvidia to enhance AI-driven logistics solutions. Additionally, the company launched the “Meritocracy Fellowship,” offering high school graduates work experience to bypass traditional college pathways.

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