Palantir Technologies’ shares gained in after-hours trading on Monday (Tuesday AEDT), touching fresh record highs after the company reported stronger-than-expected third-quarter results and raised its outlook for the remainder of the year, driven by surging demand for its artificial intelligence software.
The data analytics firm posted earnings per share of 21 cents, beating expectations of 17 cents, while revenue came in at $1.18 billion compared with market forecasts of $1.09 billion.
“Year-over-year growth in our U.S. business surged to 77%, and year-over-year growth in U.S. commercial climbed to 121%. We are yet again announcing the highest sequential quarterly revenue growth guide in our company’s history, representing 61% year-over-year growth,” said Alex C. Karp, Co-Founder and Chief Executive Officer of Palantir Technologies.
For the current quarter, Palantir said it expects revenue of about $1.33 billion, ahead of the $1.19 billion expected by analysts.
The company’s government business grew 52% from a year earlier to $486 million, signalling strong, long-standing relationships with U.S. defence and intelligence agencies.
Government contracts have been central to Palantir’s ascent. The company, which develops advanced analytics tools for both government and commercial clients, has outpaced major legacy contractors and recently secured a deal worth up to $10 billion with the U.S. Army.
According to the company, it “closed 204 deals of at least $1 million, 91 deals of at least $5 million, and 53 deals of at least $10 million. Closed a record-setting $2.76 billion of total contract value (‘TCV’), up 151% year-over-year. Closed a record-setting $1.31 billion of U.S. commercial TCV, up 342% year-over-year”.
Palantir also acknowledged ongoing scrutiny over the use of its software by U.S. government agencies, including Immigration and Customs Enforcement (ICE), though investors appeared more focused on its commercial momentum.
Total quarterly revenue jumped 63% from $725.5 million a year ago, marking the second consecutive quarter above the $1 billion mark. Net income more than tripled to $475.6 million, or 18 cents per share, compared with $143.5 million, or 6 cents, a year earlier.
For the full year, Palantir expects sales of about $4.4 billion, topping forecasts of $4.17 billion. It also raised its free cash flow guidance to between $1.9 billion and $2.1 billion.
The company’s commercial revenue more than doubled to $397 million, with total contract value for commercial deals soaring over fourfold to $1.31 billion.
In recent weeks, Palantir has announced new AI partnerships with Snowflake, Lumen, and Nvidia, further expanding its commercial reach.
Retail investors have helped propel Palantir’s stock to new highs this year. Shares have surged more than 171.9% in 2025.
At the time of writing, Palantir (NASDAQ: PLTR) was trading at US$207.18, up 3.4% from Friday’s close, before gaining an additional 1.1% in after-hours trading. The company’s market capitalisation now stands at approximately $491.5 billion.
