As of January 2026, Palantir has released its Q3 2025 results (for the period ended September 30, 2025). This quarter was described by management as a “defining moment,” characterized by massive AI-driven acceleration.
Below is the detailed summary in English:
1. Financial Performance Summary
- Total Revenue: 1.181 billion dollars, up 63% year-over-year (YoY), significantly beating consensus estimates.
- GAAP Net Income: 476 million dollars (40% margin), marking a 231% increase YoY.
- GAAP Income from Operations: 393 million dollars (33% margin), up 248% YoY, showcasing extreme operating leverage.
- Adjusted EPS: 0.21 dollars vs. 0.10 dollars in Q3 2024.
2. Segment Analysis (The “US Engine”)
The growth was almost entirely powered by the US market, particularly the adoption of the Artificial Intelligence Platform (AIP).
- US Commercial Revenue: 397 million dollars, up 121% YoY. This is the standout metric, as it more than doubled in a single year.
- US Government Revenue: 486 million dollars, up 52% YoY, driven by mission-critical defense and intelligence AI contracts.
- Total US Revenue: 883 million dollars, up 77% YoY, now representing roughly 75% of total company revenue.
3. Operational Efficiency: “Rule of 40” Excellence
Palantir achieved a Rule of 40 score of 114% (63% revenue growth + 51% adjusted operating margin). In the software industry, any score above 40% is considered excellent; 114% puts Palantir in the top 1% of all global SaaS companies.
4. Customer Growth & Deal Scale
- Customer Count: Grew 45% YoY.
- Total Contract Value (TCV): Palantir closed a record 2.76 billion dollars in TCV during the quarter, a 151% increase YoY.
- AIP Bootcamps: The company cited its “Bootcamp” strategy as the primary driver for compressing sales cycles, allowing prospects to see live value in days rather than months.
5. Balance Sheet & Cash Flow
- Cash Position: 6.4 billion dollars in cash, equivalents, and US Treasuries.
- Debt: The company remains debt-free.
- Adjusted Free Cash Flow (FCF): 540 million dollars for the quarter (46% margin).
6. Updated FY 2025 Guidance
Due to the strong momentum, Palantir raised its full-year 2025 guidance:
- Full-Year Revenue: Raised to approximately 4.4 billion dollars (over 50% growth).
- US Commercial Revenue: Expected to exceed 1.433 billion dollars (growth of at least 104%).
- Adjusted Operating Income: Raised to roughly 2.15 billion dollars.
As of January 2026, the most recent quarterly filing is the Q3 2025 report (for the period ended September 30, 2025). This quarter marked a significant acceleration for Palantir, driven primarily by the rapid scaling of its Artificial Intelligence Platform (AIP).
Below is the Income Statement summary based on the Q3 2025 official results.
Palantir Condensed Consolidated Statement of Operations (GAAP)
Values in thousands, except percentages.
| Item | Q3 2025 | Q3 2024 | YoY Growth | % of Total Revenue (2025) |
| Total Revenue | 1,181,092 | 725,516 | 62.8% | 100.0% |
| Cost of Revenue | 207,307 | 146,639 | 41.4% | 17.6% |
| Gross Profit | 973,785 | 578,877 | 68.2% | 82.4% |
| Operating Expenses | 580,529 | 465,737 | 24.6% | 49.2% |
| Income from Operations | 393,256 | 113,140 | 247.6% | 33.3% |
| Other Income (incl. Interest) | ~82,343 | 44,010 | 87.1% | 7.0% |
| Net Income | 475,599 | 144,116 | 230.0% | 40.3% |
Revenue by Segment & Geography
The “US Engine” now represents nearly 75% of total company revenue.
| Segment / Geography | Q3 2025 Revenue | Q3 2024 Revenue | YoY Growth | % of Total Revenue |
| Commercial Segment | 548,416 | 317,278 | 72.8% | 46.4% |
| – US Commercial | 397,000 | 179,134 | 121.6% | 33.6% |
| – International Commercial | 151,416 | 138,144 | 9.6% | 12.8% |
| Government Segment | 632,676 | 408,238 | 55.0% | 53.6% |
| – US Government | 486,000 | 320,186 | 51.8% | 41.1% |
| – International Government | 146,676 | 88,052 | 66.6% | 12.4% |
Key Financial Takeaways:
- Hyper-Growth in US Commercial: The 121.6% YoY growth in the US Commercial segment is the primary catalyst. This is attributed to the “Bootcamp” strategy effectively converting AI interest into massive production contracts.
- Operating Leverage: While revenue surged by 62.8%, operating expenses only grew by 24.6%. This allowed GAAP Income from Operations to grow by nearly 2.5x, demonstrating the scalability of the software-led model.
- Net Profitability: Palantir achieved its 12th consecutive quarter of GAAP profitability, with net margins expanding to over 40% (boosted by significant interest income from its 6.4 billion dollars cash reserve).
- Rule of 40 Score: The company reported a “Rule of 40” score of 114% (63% growth + 51% adjusted operating margin), placing it in the elite tier of enterprise software companies globally.
Based on the official Q3 2025 results released in November 2025, here is the Balance Sheet summary. This quarter was characterized by a massive surge in cash reserves and accounts receivable, reflecting the company’s hyper-growth phase.
Palantir Technologies Inc. Balance Sheet Summary (Q3 2025)
Values in thousands, except percentages.
| Item | Sep 30, 2025 | Dec 31, 2024* | Change (vs Year-End) | % of Total Assets |
| Current Assets | ||||
| Cash and Cash Equivalents | 1,615,967 | 2,098,524 | -23.0% | 19.9% |
| Marketable Securities | 4,821,850 | 3,131,463 | 54.0% | 59.4% |
| Accounts Receivable, Net | 1,005,910 | 575,048 | 74.9% | 12.4% |
| Other Current Assets | 142,429 | 108,610 | 31.1% | 1.8% |
| Total Current Assets | 7,586,156 | 5,913,645 | 28.3% | 93.5% |
| Total Non-Current Assets | 523,844 | 437,355 | 19.8% | 6.5% |
| Total Assets | 8,110,000 | 6,351,000 | 27.7% | 100.0% |
| Total Liabilities | 1,430,000 | 1,121,000 | 27.6% | 17.6% |
| Total Stockholders’ Equity | 6,680,000 | 5,230,000 | 27.7% | 82.4% |
| Total Liabilities & Equity | 8,110,000 | 6,351,000 | 27.7% | 100.0% |
*Note: 2024 Year-End figures are based on the latest audited 10-K filing adjusted for the 2025 comparison context.
Key Financial Insights:
- Massive Liquidity: The combined value of Cash and Marketable Securities reached 6.44 billion dollars, representing nearly 80% of the company’s total assets. The shift from cash to marketable securities indicates a strategic move to optimize returns on their large reserves.
- Accounts Receivable Surge: Accounts receivable grew by 74.9% in just nine months. This is a direct consequence of the 63% revenue growth and the closing of record-breaking contracts (2.76 billion dollars in TCV during Q3 alone).
- Zero Debt Profile: Palantir continues to operate with zero long-term debt, a rarity for high-growth software companies. Its liabilities consist primarily of accrued expenses and deferred revenue (money paid by customers for services yet to be delivered).
- Capital Efficiency: The company generated 540 million dollars in adjusted free cash flow in Q3 2025, which significantly strengthened the balance sheet and boosted shareholder equity.
The Rule of 40 is a gold standard metric in the software industry (specifically for SaaS companies) used to evaluate the balance between growth and profitability.
1. Definition and Formula
The principle states that for a healthy software company, the sum of its revenue growth rate and its profit margin should be at least 40%.
Rule of 40 = Revenue Growth Rate (%) + Profit Margin (%)
- Result > 40%: Considered exceptional, indicating the company is growing efficiently without sacrificing financial health.
- Result < 40%: May suggest the company is growing too slowly or spending too much to acquire its growth.
2. Palantir’s Performance in Q3 2025
In the third quarter of 2025, Palantir achieved a staggering score of 114%. This places the company in the top 1% of all enterprise software companies globally.
The calculation for Palantir’s Q3 2025 score is:
- Revenue Growth (YoY): 63%
- Adjusted Operating Margin: 51%
- Total Score: $63 + 51 = 114$
3. Why 114% is Extraordinary
- Scaling Difficulty: Most companies see their growth rate slow down as they get larger. Palantir, however, saw its growth accelerate (from 48% in Q2 to 63% in Q3) while simultaneously expanding its margins.
- Industry Comparison: A “healthy” score is 40%. Palantir is performing at nearly three times the industry benchmark. Management noted that among the top 25 global tech companies, Palantir’s Rule of 40 score ranks second only to Nvidia.
- Operational Efficiency: This proves that Palantir is not “buying” its growth through heavy marketing spend. Instead, its AIP Bootcamp strategy allows it to acquire and expand customers with extreme efficiency, resulting in high profitability even during a hyper-growth phase.
In short, a 114% Rule of 40 score indicates that Palantir has reached an “AI inflection point” where its platform is scaling rapidly while becoming significantly more profitable at the same time.
The doubling of Palantir’s GAAP Net Income Margin from 19.9% in Q3 2024 to 40.3% in Q3 2025 is a result of several powerful financial levers working simultaneously:
1. Massive Operating Leverage
Palantir’s business model has reached a point where revenue is growing much faster than costs. In Q3 2025:
- Revenue surged 63%, while Operating Expenses grew much slower (approx. 25%).
- This efficiency is largely due to the AIP Bootcamp model, which allows Palantir to acquire customers and deploy software in days rather than months, drastically reducing the Sales and Marketing (S&M) cost per deal.
2. High-Margin Revenue Mix (US Commercial)
The US Commercial segment—the company’s highest-margin business—grew by 121%.
- Commercial software typically has higher margins than government consulting or custom integrations.
- As this segment becomes a larger piece of the total revenue pie (now 33.6%), it naturally pulls up the overall corporate net margin.
3. Record Interest Income from Cash Reserves
Palantir is currently “sitting on a mountain of cash.”
- The company holds 6.4 billion dollars in cash, cash equivalents, and US Treasuries.
- In Q3 2025, this produced roughly 83.4 million dollars in interest income. Because interest income has virtually zero associated cost, it flows directly to the bottom line, adding several percentage points to the net margin.
4. Controlled Stock-Based Compensation (SBC)
For years, high SBC was a major drag on Palantir’s GAAP profitability.
- In Q3 2025, SBC declined as a percentage of revenue to 15%.
- As the company scales, the relative “cost” of paying employees in stock is being diluted by the massive growth in top-line revenue, allowing GAAP net income to shine.
Net Margin Comparison Table
| Metric | Q3 2024 | Q3 2025 |
| GAAP Net Income | 144.1 million dollars | 475.6 million dollars |
| GAAP Net Margin | 19.9% | 40.3% |
In summary, Palantir has transitioned from a company trying to prove it can be profitable to a highly efficient profit engine. It is effectively leveraging the AI boom to scale its revenue while keeping its structural costs under control.
AIP (Artificial Intelligence Platform) is Palantir’s flagship product launched in 2023. It is designed to integrate Large Language Models (LLMs) with a company’s private data and operational workflows in a secure, controlled environment.
It is the primary engine behind the 121% growth in US Commercial revenue seen in the Q3 2025 report.
1. The Three Pillars of AIP
AIP solves the “last mile” problem of AI—moving from a chat interface to actual business execution—through three primary flows:
- Dataflow (The Foundation): It uses Palantir’s proprietary Ontology to map messy raw data into meaningful business objects (e.g., “Customer,” “Aircraft,” “Supply Chain”). This ensures the AI understands the specific context of the company, eliminating the “hallucination” issues common in generic LLMs.
- AIflow (The Logic): This allows users to build multi-step AI logic. Instead of just answering a question, the AI can trigger complex tasks—like identifying a supply shortage, querying vendor pricing, and calculating the best alternative shipping route.
- Workflow (The Execution): AIP is not a standalone chatbot; it is embedded into the actual tools employees use. It allows users to review AI-generated suggestions and execute them directly (e.g., clicking a button to reorder inventory) within the software.
2. Why AIP is a “Game Changer”
- AIP Bootcamps: This is Palantir’s secret to hyper-growth. Traditionally, enterprise software takes months to install. Through Bootcamps, Palantir puts AIP into the hands of customers, using their own data, to solve a real business problem in 5 days or less.
- Security and Governance: AIP provides a “hardened” environment where every interaction with the AI is logged and governed. It ensures the LLM never sees data the user isn’t authorized to see and that private data is never used to train public models.
- Speed to Value: By layering AIP on top of Palantir’s existing platforms (Foundry and Gotham), companies can deploy AI applications at a speed that traditional consulting or internal IT teams cannot match.
3. Palantir’s Ecosystem Comparison
| Platform | Core User | Primary Purpose |
| Gotham | Defense & Intelligence | Decision-making for battlefield and anti-terror operations. |
| Foundry | Commercial Enterprises | Integrating massive data silos for operational efficiency. |
| AIP | All Segments | The “Brain” that adds LLM-driven automation to Gotham and Foundry. |
Summary
In short, AIP is the connective tissue between a company’s data and its actions. It transforms AI from a “cool experimental tool” into a mission-critical operating system that drives actual profit and efficiency.
Palantir Foundry is the company’s commercial-facing operating system for modern enterprises. While Gotham is designed for tactical intelligence and defense, Foundry is built to manage the complex, day-to-day operations of large organizations like airlines, banks, and manufacturers.
Here is a detailed breakdown of what makes Foundry unique:
1. The Core Concept: The “Digital Twin”
Foundry’s ultimate goal is to create a Digital Twin of an entire organization. It doesn’t just store data in rows and columns; it maps that data to real-world objects.
- Ontology Layer: This is the “brain” of Foundry. It translates technical data (like a spreadsheet of serial numbers) into business concepts (like “Aircraft,” “Engine,” or “Maintenance Event”).
- Semantic, Kinetic, and Dynamic: Foundry defines what things are (Semantic), how they move or change (Kinetic), and the rules that govern them (Dynamic).
2. Key Technical Features
- Data Integration (Data Connection): Foundry has over 200 pre-built connectors to pull data from ERPs (like SAP), CRMs (like Salesforce), IoT sensors, and legacy databases.
- Low-Code/No-Code Environment: It allows non-technical business analysts to build complex data pipelines and applications using visual tools (like Pipeline Builder and Workshop) without writing a single line of code.
- Two-Way Action (Write-back): Unlike traditional dashboards that only show you data, Foundry allows you to act on it. For example, a supply chain manager can see a part shortage in Foundry and click a button to trigger a purchase order directly in the company’s external ERP system.
- Data Lineage: Every piece of data is tracked from its source through every transformation. This is critical for highly regulated industries like healthcare and finance for auditing and compliance.
3. Why Companies Use Foundry
- Breaking Down Silos: In large companies, the finance department often uses different data than the manufacturing department. Foundry unifies these into a “Single Source of Truth.”
- Speed to Value: Palantir claims that while traditional data warehouse projects take years, Foundry can show measurable ROI (Return on Investment) in weeks.
- Collaboration: It provides a shared workspace where data engineers, data scientists, and business executives can all work on the same “Digital Twin” simultaneously.
4. Real-World Examples
- Airbus: Uses Foundry (under the name “Skywise”) to integrate data from thousands of planes and hundreds of airlines to predict part failures before they happen.
- BP: Uses it to create “Digital Oilfields,” optimizing production and reducing the risk of environmental accidents.
- Ferrari: Uses Foundry to analyze racing data in real-time to optimize pit stop timing and car performance.
Summary: The Operating System for Business
| Feature | Traditional Data Warehouse | Palantir Foundry |
| Primary Goal | Storing and reporting data. | Executing business operations. |
| Interface | SQL queries and static dashboards. | Interactive apps and “Digital Twins.” |
| Integration | Often requires heavy manual ETL. | Automated, bi-directional syncing. |
| End User | Data Analysts/Engineers. | Everyone—from CEOs to factory workers. |
In short, Foundry is the “Central Nervous System” of a company. It ensures that everyone is looking at the same information and can make decisions that immediately impact the physical world.
Here is the English translation for the explanation of Palantir Gotham.
Palantir Gotham is Palantir’s flagship product, originally custom-built for the U.S. intelligence community. It is positioned as a “Decision-Making Operating System” primarily serving government departments, defense agencies, and law enforcement units.
If AIP is the “AI Brain” and Foundry is the “Enterprise Data Foundation,” then Gotham is the Battlefield Command Center designed specifically for front-line missions.
1. Core Functions of Gotham
Gotham’s primary mission is to extract hidden connections from massive, messy, and heterogeneous data and transform them into concrete operational commands:
- Data Fusion: Integrates information from disparate sources—such as satellite imagery, drone footage, communication records, financial transactions, and sensor data—into a single unified view.
- Link Analysis: Uncovers hidden relationships between people, places, events, and objects. For example, identifying that a specific bank transfer correlates with a terrorist activity in terms of time and location.
- Geospatial Analysis: Provides powerful visualization tools allowing commanders to see friendly/enemy distributions, terrain changes, and real-time battlefield status.
- Actionable Intelligence: It doesn’t just display data; it assists in decision-making. For instance, predicting an enemy’s likely route or suggesting the optimal path for a rescue mission.
2. Classic Use Cases
- Counter-terrorism & Intelligence: Assists intelligence officers in identifying terrorist networks and tracking illicit financial flows.
- Battlefield Deployment: During the wars in Iraq and Afghanistan, the U.S. military used Gotham to predict and avoid the locations of Improvised Explosive Devices (IEDs).
- Crime Fighting: Law enforcement agencies use Gotham to analyze serial crime patterns and lock onto suspects and their social networks.
- Disaster Relief: In large-scale natural disasters, it integrates weather, road conditions, and resource data for efficient rescue coordination.
3. Key Differences: Gotham vs. Foundry vs. AIP
| Platform | Core User | Primary Focus |
| Gotham | Defense, Intel, Police | Mission-Oriented. Emphasizes “Track, Identify, Neutralize” to solve security-critical issues. |
| Foundry | Commercial Enterprises | Operational-Oriented. Emphasizes “Optimize, Predict, Efficiency” to solve supply chain and manufacturing issues. |
| AIP | Universal | AI Enhancement Layer. Injects Large Language Model (LLM) capabilities into both platforms, allowing natural language control. |
4. Why the name “Gotham”?
The name is inspired by Gotham City from the Batman universe. This reflects Palantir’s core philosophy: even in a city of data filled with darkness and chaos, a powerful set of tools is needed to maintain order, discover wrongdoing, and assist in the execution of “justice.”
Summary
The strength of Gotham lies in its ability to handle unstructured and extremely sensitive data while maintaining high-grade security and access controls, enabling secure cross-departmental collaboration.