Palantir’s Q4 2025 U.S. Revenue Surges, 2026 Guidance Exceeds Expectations
Palantir Technologies Inc. has reported impressive financial results for the fourth quarter and full fiscal year that ended on December 31, 2025. The company’s U.S. revenue saw significant growth, marking a 93% year-over-year increase. This surge contributes to an overall 70% growth in total revenue for the quarter.
Q4 2025 Highlights
For the fourth quarter, Palantir achieved remarkable financial metrics:
- U.S. revenue reached $1.076 billion, reflecting a 22% increase compared to the previous quarter.
- U.S. commercial revenue escalated to $507 million, up 28% quarter-over-quarter.
- U.S. government revenue grew to $570 million, a 17% increase from the prior quarter.
- Total revenue for Q4 was $1.407 billion, showing a 19% rise from Q3 of 2025.
- The company closed 180 deals valued at a minimum of $1 million, with 84 worth over $5 million.
Financial Metrics
Palantir reported the following key metrics for Q4 2025:
- GAAP income from operations stood at $575 million, indicating a 41% margin.
- Adjusted income from operations was $798 million, equating to a 57% margin.
- GAAP net income reached $609 million, a margin of 43%.
- Adjusted free cash flow totaled $791 million, with a margin of 56%.
- Cash, cash equivalents, and short-term securities amounted to $7.2 billion.
2026 Financial Outlook
Looking ahead, Palantir provides optimistic guidance for 2026:
- Expected revenue between $7.182 billion and $7.198 billion.
- Projected U.S. commercial revenue exceeding $3.144 billion, anticipating a growth rate of at least 115% year-over-year.
- Adjusted operating income forecasted between $4.126 billion and $4.142 billion.
- Adjusted free cash flow estimated between $3.925 billion and $4.125 billion.
CEO Insights
CEO Alex C. Karp emphasized Palantir’s strategic approach, highlighting the unique scalability offered through advancements in AI. He remarked on the company’s standout Rule of 40 score, which stands at an impressive 127%. This performance reinforces Palantir’s position as a leader in the tech sector focused on leveraging operational efficiencies through innovation.
Summary
Palantir Technologies has shown exceptional performance in Q4 2025, with staggering growth rates and a promising outlook for 2026. The company’s financial results solidify its status as a pioneer in the technology space, particularly in operational leverage through artificial intelligence models. Investors and stakeholders are looking forward to the upcoming live webcast where further details will be discussed.
