Palantir Reports Q4 2025 U.S. Comm Revenue Growth of 137% Y/Y and Revenue Growth of 70% Y/Y; Issues FY 2026 Revenue Guidance of 61% Y/Y and U.S. Comm Revenue Guidance of 115% Y/Y, Crushing Consensus Expectations
DENVER--( BUSINESS WIRE)--Palantir Technologies Inc. (NASDAQ:PLTR) today announced financial results for the fourth quarter and fiscal year ended December 31, 2025.
“Palantir’s Rule of 40 score is now an incredible 127%. Last quarter, our U.S. revenue grew 93% year-over-year and U.S. commercial revenue grew 137% year-over-year. We are also announcing a 2026 revenue growth guide of 61% year-over-year. We are an n of 1, and these numbers prove it. Palantir is alone in choosing to exclusively focus on scaling the operational leverage made possible by the rapid advancements of AI models, a trend that we first called ‘commodity cognition’ well before others started repeating it,” said Alex C. Karp, Co-Founder and Chief Executive Officer of Palantir Technologies.
Q4 2025 Highlights
FY 2025 Highlights
Q4 and FY 2025 Financial Summary
(Unaudited)
(Amounts in thousands, except percentages and per share amounts)
Fourth Quarter
Full Year 2025
Amount
Amount
Revenue
$
1,406,802
$
4,475,446
Year-over-year growth
70
%
56
%
Amount
Margin
Amount
Margin
Income from Operations
$
575,394
41
%
$
1,414,015
32
%
Adjusted Income from Operations
$
798,465
57
%
$
2,254,100
50
%
Cash from Operations
$
777,295
55
%
$
2,134,473
48
%
Adjusted Free Cash Flow
$
791,428
56
%
$
2,270,436
51
%
Net Income Attributable to Common Stockholders
$
608,676
43
%
$
1,625,033
36
%
Adjusted Net Income Attributable to Common Stockholders
$
647,973
$
1,915,638
Adjusted EBITDA
$
805,483
57
%
$
2,280,245
51
%
GAAP EPS, Diluted
$
0.24
$
0.63
Adjusted EPS, Diluted
$
0.25
$
0.75
Outlook
For Q1 2026, we expect:
For full year 2026, we expect:
CEO Letter
Palantir CEO Alex Karp’s letter to shareholders is available through Palantir’s website at https://www.palantir.com/newsroom/letters.
Earnings Webcast
A live public webcast will be held at 3:00 PM MT / 5:00 PM ET today to discuss the results for our fourth quarter and year ended December 31, 2025 and financial outlook. The webcast can be accessed by registering online at https://palantir.events/palantirearnings-q42025. A replay of the webcast will be available at https://investors.palantir.com following the event.
An investor presentation, including supplemental financial information and reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, will be available through Palantir’s Investor Relations website at https://investors.palantir.com.
Forward-Looking Statements
This press release and statements on our earnings webcast contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our financial outlook, product development and related timing, distribution, and pricing, expected benefits of and applications for our software platforms, business strategy and plans (including strategy and plans relating to our Artificial Intelligence Platform (“AIP”), sales and marketing efforts, sales force, partnerships, and customers), investments in our business, market trends and market size, opportunities (including growth opportunities), our expectations regarding our existing and potential investments in, and commercial contracts with, various entities, our expectations regarding macroeconomic events, and positioning. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Words such as “guidance,” “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “plan,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to risks detailed in our filings with the Securities and Exchange Commission (the “SEC”), including in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 and other filings and reports that we may file from time to time with the SEC, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. In particular, the following factors, among others, could cause our results to differ materially from those expressed or implied by such forward-looking statements: our ability to successfully execute our business and growth strategy; the sufficiency of our available funds to meet our liquidity needs; the demand for our platforms, product offerings, and services in general; our ability to increase our number of new customers and revenue generated from customers; our ability to realize some or all of the total contract value of customer contracts as revenue, including any contractual options available to customers or contractual periods that are subject to termination for convenience provisions; our long and unpredictable sales cycle; our ability to successfully execute our channel sales and other strategic initiatives with third parties; our ability to retain and expand our customer base; the fluctuation of our results of operations and our key business measures on a quarterly basis in future periods; the seasonality of our business; the implementation process for our platforms, which may be complex and lengthy; our ability to successfully develop and deploy new technologies to address the needs of our existing or prospective customers; our ability to make our platforms and product offerings easier to install, consume, and use; our ability to maintain and enhance our brand and reputation; our ability to maintain and enhance our culture as our business grows and as we pursue our business and financial goals; news or social media coverage or other external scrutiny about us or our leadership, including but not limited to coverage that presents, enhances, or relies on, inaccurate, misleading, incomplete, or otherwise damaging information, misconceptions, or falsehoods; the impact of recent, ongoing, or future global macroeconomic and geopolitical events, fluctuating interest rates, monetary policy changes, foreign currency fluctuations, or the potential or actual imposition of tariffs or other impacts on trade relations on the business and operations of our company or of our existing or prospective customers and partners; issues raised by the use of artificial intelligence in our platforms; and any breach or access to our or customer or third-party data.
The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Past performance is not necessarily indicative of future results.
Additional Definitions
For the purpose of this press release, our earnings webcast, and our CEO’s letter:
Non-GAAP Financial Measures
This press release and the accompanying tables, as well as our earnings webcast, and our CEO’s letter, contain the non-GAAP financial measures adjusted income from operations, which excludes stock-based compensation and related employer payroll taxes; adjusted operating margin; adjusted free cash flow; adjusted free cash flow margin; adjusted earnings before interest, taxes, depreciation, and amortization (“adjusted EBITDA”); adjusted EBITDA margin; adjusted net income attributable to common stockholders; and adjusted EPS, diluted.
We believe these non-GAAP financial measures and other metrics described in this press release help us evaluate our business, identify trends affecting Palantir’s business, formulate business plans and financial projections, and make strategic decisions. We exclude stock-based compensation, which is a non-cash expense, from these non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance and provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team. We exclude employer payroll taxes related to stock-based compensation as it is difficult to predict and outside of Palantir’s control.
Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Further, these metrics have certain limitations as they do not include the impact of certain expenses that are reflected in our consolidated statements of operations. For example, adjusted free cash flow does not reflect our future contractual commitments or the total increase or decrease in our cash balances for a given period. Thus, our non-GAAP financial measures should be considered in addition to, not as a substitute for, or in isolation from, measures prepared in accordance with GAAP.
We compensate for these limitations by providing a reconciliation of each of these non-GAAP measures to the most comparable GAAP measure. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP measures in conjunction with the most directly comparable GAAP financial measure.
A reconciliation table of the most comparable GAAP financial measure to each non-GAAP financial measure used in this press release is included at the end of this release. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, reconciling items that may be incurred in the future, such as stock-based compensation and related employer payroll taxes, the effect of which may be significant.
Available Information
Palantir uses its Investor Relations website at https://investors.palantir.com as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor Palantir’s Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, and webcasts.
About Palantir Technologies Inc.
Foundational software of tomorrow. Delivered today. Additional information is available at https://www.palantir.com.
Palantir Technologies Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
December 31,
Years Ended
December 31,
2025
2024
2025
2024
Revenue
$
1,406,802
$
827,519
$
4,475,446
$
2,865,507
Cost of revenue (1)
215,966
174,533
789,177
565,990
Gross profit
1,190,836
652,986
3,686,269
2,299,517
Operating expenses:
Sales and marketing (1)
302,126
288,295
1,056,859
887,755
Research and development (1)
143,554
171,502
557,677
507,878
General and administrative (1)
169,762
182,146
657,718
593,481
Total operating expenses
615,442
641,943
2,272,254
1,989,114
Income from operations
575,394
11,043
1,414,015
310,403
Interest income
62,723
54,727
229,181
196,792
Other income (expense), net
(16,734
)
14,768
14,172
(18,022
)
Income before provision for income taxes
621,383
80,538
1,657,368
489,173
Provision for income taxes
9,776
3,602
22,724
21,255
Net income
611,607
76,936
1,634,644
467,918
Less: Net income (loss) attributable to noncontrolling interests
2,931
(2,073
)
9,611
5,728
Net income attributable to common stockholders
$
608,676
$
79,009
$
1,625,033
$
462,190
Earnings per share attributable to common stockholders, basic
$
0.26
$
0.03
$
0.69
$
0.21
Earnings per share attributable to common stockholders, diluted
$
0.24
$
0.03
$
0.63
$
0.19
Weighted-average shares of common stock outstanding used in computing earnings per share attributable to common stockholders, basic
2,386,904
2,304,883
2,369,612
2,250,163
Weighted-average shares of common stock outstanding used in computing earnings per share attributable to common stockholders, diluted
2,573,497
2,528,279
2,565,197
2,450,818
—————
(1) Includes stock-based compensation expense as follows (in thousands):
Three Months Ended
December 31,
Years Ended
December 31,
2025
2024
2025
2024
Cost of revenue
$
18,777
$
33,124
$
64,555
$
69,065
Sales and marketing
77,031
97,953
248,732
239,121
Research and development
37,888
77,533
136,839
165,065
General and administrative
62,709
73,188
233,907
218,387
Total stock-based compensation
$
196,405
$
281,798
$
684,033
$
691,638
Palantir Technologies Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
As of December 31,
2025
2024
Assets
Current assets:
Cash and cash equivalents
$
1,423,796
$
2,098,524
Marketable securities
5,753,247
3,131,463
Accounts receivable, net
1,042,065
575,048
Prepaid expenses and other current assets
139,066
129,254
Total current assets
8,358,174
5,934,289
Property and equipment, net
51,960
39,638
Operating lease right-of-use assets
200,105
200,740
Other assets
290,153
166,217
Total assets
$
8,900,392
$
6,340,884
Liabilities and Equity
Current liabilities:
Accounts payable
$
8,064
$
103
Accrued liabilities
355,624
427,046
Deferred revenue
408,963
259,624
Customer deposits
357,066
265,252
Operating lease liabilities
45,864
43,993
Total current liabilities
1,175,581
996,018
Deferred revenue, noncurrent
46,216
39,885
Customer deposits, noncurrent
18
1,663
Operating lease liabilities, noncurrent
183,474
195,226
Other noncurrent liabilities
7,092
13,685
Total liabilities
1,412,381
1,246,477
Palantir’s stockholders’ equity:
Common stock
2,391
2,339
Additional paid-in capital
10,933,325
10,193,970
Accumulated other comprehensive income (loss), net
13,942
(5,611
)
Accumulated deficit
(3,562,390
)
(5,187,423
)
Total Palantir’s stockholders’ equity
7,387,268
5,003,275
Noncontrolling interests
100,743
91,132
Total equity
7,488,011
5,094,407
Total liabilities and equity
$
8,900,392
$
6,340,884
Palantir Technologies Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Years Ended December 31,
2025
2024
Operating activities
Net income
$
1,634,644
$
467,918
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
26,145
31,587
Stock-based compensation
684,033
691,638
Unrealized and realized (gain) loss from marketable securities, net
21,228
19,306
Noncash consideration
(37,244
)
(52,521
)
Other operating activities
15,630
66,034
Changes in operating assets and liabilities:
Accounts receivable, net
(450,429
)
(211,157
)
Prepaid expenses and other assets
51,979
11,883
Accounts payable and accrued liabilities
4,659
96,793
Contract liabilities
238,688
76,796
Other liabilities
(54,860
)
(44,412
)
Net cash provided by operating activities
2,134,473
1,153,865
Investing activities
Purchases of property and equipment
(33,882
)
(12,634
)
Purchases of marketable securities
(7,702,060
)
(5,395,913
)
Proceeds from sales and redemption of marketable securities
5,026,315
5,073,507
Purchases of privately-held securities
(72,924
)
(5,615
)
Other investing activities
(1,000
)
—
Net cash used in investing activities
(2,783,551
)
(340,655
)
Financing activities
Proceeds from the exercise of common stock options
129,107
745,396
Repurchases of common stock
(74,985
)
(64,196
)
Taxes paid related to net share settlement of equity awards
(81,117
)
(218,280
)
Other financing activities
85
444
Net cash provided by (used in) financing activities
(26,910
)
463,364
Effect of foreign exchange on cash, cash equivalents, and restricted cash
7,477
(6,745
)
Net increase (decrease) in cash, cash equivalents, and restricted cash
(668,511
)
1,269,829
Cash, cash equivalents, and restricted cash - beginning of period
2,119,936
850,107
Cash, cash equivalents, and restricted cash - end of period
$
1,451,425
$
2,119,936
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)
Non-GAAP Reconciliations
Adjusted Income from Operations and Adjusted Operating Margin (in thousands, except percentages)
Three Months Ended
December 31,
Years Ended
December 31,
2025
2024
2025
2024
Income from operations
$
575,394
$
11,043
$
1,414,015
$
310,403
Add: stock-based compensation
196,405
281,798
684,033
691,638
Add: employer payroll taxes related to stock-based compensation
26,666
79,681
156,052
126,021
Adjusted income from operations
$
798,465
$
372,522
$
2,254,100
$
1,128,062
Adjusted operating margin
57
%
45
%
50
%
39
%
Three Months Ended
December 31,
Year Ended
December 31,
2025
2024
2025
2024
Net cash provided by operating activities
$
777,295
$
460,327
$
2,134,473
$
1,153,865
Add: cash paid for employer payroll taxes related to stock-based compensation
27,405
60,164
169,845
107,991
Less: purchases of property and equipment
(13,272
)
(3,106
)
(33,882
)
(12,634
)
Adjusted free cash flow
$
791,428
$
517,385
$
2,270,436
$
1,249,222
Adjusted free cash flow margin
56
%
63
%
51
%
44
%
Adjusted EBITDA and Adjusted EBITDA Margin (in thousands, except percentages)
Three Months Ended
December 31,
Year Ended
December 31,
2025
2025
Net income attributable to common stockholders
$
608,676
$
1,625,033
Add: net income attributable to noncontrolling interests
2,931
9,611
Less: interest income
(62,723
)
(229,181
)
Add: other (income) expense, net
16,734
(14,172
)
Add: provision for income taxes
9,776
22,724
Add: depreciation and amortization
7,018
26,145
Add: stock-based compensation
196,405
684,033
Add: employer payroll taxes related to stock-based compensation
26,666
156,052
Adjusted EBITDA
$
805,483
$
2,280,245
Adjusted EBITDA margin
57
%
51
%
Adjusted Net Income and Adjusted Earnings Per Share, Diluted (in thousands, except per share amounts)
Three Months Ended
December 31,
Year Ended
December 31,
2025
2025
Net income attributable to common stockholders
$
608,676
$
1,625,033
Add: stock-based compensation
196,405
684,033
Add: employer payroll taxes related to stock-based compensation
26,666
156,052
Less: income tax effects and adjustments (1)
(183,774
)
(549,480
)
Adjusted net income attributable to common stockholders, diluted
$
647,973
$
1,915,638
Adjusted weighted-average shares used in computing adjusted earnings per share, diluted
2,573,497
2,565,197
Adjusted earnings per share, diluted
$
0.25
$
0.75
————
(1) Income tax effect is based on long-term estimated annual effective tax rates of 23.0% for the periods presented.