Gold prices dip as December rate cut bets wane; Fed, econ. data in focus
Introduction & Market Context
Palantir Technologies (NYSE:PLTR) delivered a standout third quarter for 2025, with results that place the company among the top performers in the enterprise software sector. The data analytics and AI platform provider’s presentation, released alongside its November 3 earnings report, revealed exceptional growth metrics and profitability improvements that exceeded analyst expectations.
The company’s stock responded positively to the results, rising 2.22% in aftermarket trading to $204.93, approaching its 52-week high of $207.52. This performance comes amid growing enterprise adoption of AI solutions and Palantir’s strategic positioning in both government and commercial markets.
Quarterly Performance Highlights
Palantir’s Q3 2025 results demonstrated broad-based strength across all key metrics, with total revenue growing 63% year-over-year to $1.18 billion. The company achieved a Rule of 40 score (combining revenue growth and adjusted operating margin) of 114%, significantly outperforming other enterprise software companies.
As shown in the following summary of quarterly highlights:
The company’s deal momentum was particularly impressive, with 204 deals closed worth at least $1 million, 91 deals of at least $5 million, and 53 deals of at least $10 million. This represents the highest quarterly total contract value in the company’s history at $2.8 billion, up 151% year-over-year.
US Commercial Acceleration
The most striking aspect of Palantir’s Q3 performance was the acceleration in its US commercial business, which grew 121% year-over-year and 29% quarter-over-quarter to $397 million. This segment has become a primary growth driver for the company, as illustrated in the following slide:
The US commercial customer count increased 65% year-over-year and 9% quarter-over-quarter to 530 customers. Particularly notable was the growth in US commercial remaining deal value, which surged 199% year-over-year to $3.6 billion, indicating strong future revenue potential.
The breakdown between US commercial and government revenue growth shows the company’s success in diversifying its revenue streams while maintaining strength in its traditional government business:
Financial Performance
Palantir’s profitability metrics showed significant improvement in Q3 2025. GAAP net income reached $475.6 million, continuing a strong upward trajectory over the past five quarters:
Similarly, GAAP operating income rose to $393.3 million, representing a 33% operating margin:
The company’s adjusted operating income reached $601 million with a record 51% margin, demonstrating Palantir’s ability to scale efficiently while investing in growth:
Palantir’s Rule of 40 score has shown consistent improvement over the past eight quarters, rising from 54% in Q4 2023 to 114% in Q3 2025, placing it among the elite performers in the software industry:
When compared to other enterprise software companies with over $1 billion in trailing twelve-month revenue, Palantir’s Rule of 40 score of 114% stands out significantly:
Strategic Partnerships and Innovations
Palantir highlighted several strategic partnerships that position the company for continued growth. Most notably, its collaboration with NVIDIA aims to leverage enterprise data for decision intelligence, with NVIDIA’s CEO Jensen Huang describing Palantir’s Ontology as "probably the single most important enterprise stack in the world":
The company also showcased its partnership with Lear Corporation in the automotive manufacturing sector, where 11,000 employees are leveraging Palantir across 175 use cases, driving efficiency and contributing to over $30 million in savings in the first half of 2025.
Additionally, Palantir introduced its Next-Gen Interoperability: Multimodal Data Plane, which enables AI integration across enterprise systems:
Forward Guidance
Looking ahead, Palantir provided strong guidance for Q4 and the full fiscal year 2025:
The company expects Q4 2025 revenue between $1.327-$1.331 billion and adjusted income from operations between $695-$699 million. For the full fiscal year 2025, Palantir projects revenue of $4.396-$4.400 billion, with US commercial revenue exceeding $1.433 billion, representing growth of at least 104%.
These projections align with the company’s demonstrated momentum and suggest continued strong performance into 2026. With adjusted free cash flow expected between $1.9-$2.1 billion for the full year, Palantir is positioning itself for both growth and profitability in the rapidly expanding enterprise AI market.
The company’s exceptional performance in Q3 2025, particularly in the US commercial segment, validates its strategy of focusing on enterprise-wide AI transformation and positions Palantir as a leader in the next generation of enterprise software.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.