Palantir Earnings Lift Guidance After Army Deal
Palantir earnings show brisk growth and a raised 2025 revenue target supported by a $10.0 billion U.S. Army contract, prompting traders to watch guidance.
KEY TAKEAWAYS
- Q3 revenue $1.2 billion, up 63.0% year-over-year, beat estimates.
- Raised 2025 revenue guidance to about $4.4 billion, implying roughly 53.0% growth.
- Secured a 10-year $10.0 billion U.S. Army contract consolidating 75 legacy agreements.
HIGH POTENTIAL TRADES SENT DIRECTLY TO YOUR INBOX
Add your email to receive our free daily newsletter. No spam, unsubscribe anytime.
Palantir Technologies (PLTR) reported brisk growth and raised its full-year revenue outlook, with earnings signaling stronger momentum that supported the stock despite a rich valuation. Traders are focused on the company’s upcoming Feb. 2, 2026 earnings report.
Q3 Results and Guidance
Palantir reported third-quarter 2025 revenue of $1.18 billion, a 63% increase year-over-year, beating the $1.09 billion estimate when results were released Nov. 3, 2025. Earnings per share came to $0.21, ahead of the $0.17 consensus.
GAAP net income reached $476 million, reflecting a 40% margin. Adjusted free cash flow totaled $540 million, or 46% of revenue, highlighting strong cash generation.
The company raised its full-year 2025 revenue guidance to about $4.4 billion, implying roughly 53% growth from 2024. Management emphasized durable demand and positioned profitability and cash flow as key drivers for investor models.
Contracts, Backlog, and Revenue Mix
In early August 2025, Palantir secured a 10-year, $10 billion U.S. Army contract that consolidates 75 legacy agreements. The company also agreed to a £1.5 billion U.K. defense deal in September and won a $30 million contract with Immigration and Customs Enforcement for a deportation system.
Total contract value (TCV) rose 151% year-over-year to $2.76 billion in Q3, including $1.31 billion from U.S. commercial clients. Remaining deal value (RDV) increased 91% to $8.6 billion, while remaining performance obligations (RPO) grew 66%, with more than 56% classified as non-current. Customer count climbed 69% to 593.
The quarter showed a heavier U.S. footprint: U.S. revenue totaled $883 million, up 77% year-over-year. U.S. commercial revenue surged 121% to $397 million, and government sales rose 52%. This mix reflects commercial expansion complementing steady government business.
Valuation and Analyst Perspectives
Eighteen analysts cover Palantir, with six rating it a Buy, ten Hold, and two Sell. Price targets range from $50 to $255, with a median near $190. Valuation multiples are high, with price-to-earnings ratios between roughly 167 and 292 and a price/earnings-to-growth (PEG) ratio near 5.1. The company held $3.9 billion in cash, a factor investors consider when balancing growth prospects against valuation.
The quarter’s margin expansion, raised guidance, and large multi-year contracts enhance forward revenue visibility. These factors help explain the wide range of analyst assessments as Palantir approaches its next quarterly report.
