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Palantir (PLTR) reported its financial results for Q3 on November 11. Alex C. Karp, co-founder and CEO of Palantir, said: “114% – our Rule of 40 score! These results make undeniable the transformational impact of using AIP to compound AI leverage. 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.” Here are the earnings highlights: Revenue grew 63% year-over-year and 18% quarter-over-quarter to $1.181 billion Income from operations of $393 million, representing a 33% margin Adjusted income from operations of $601 million, representing a 51% margin Rule of 40 score of 114% Net income of $476 million, representing a 40% margin Cash from operations of $508 million, representing a 43% margin Adjusted free cash flow of $540 million, representing a 46% margin Earnings per share (EPS) of $0.18 Adjusted EPS of $0.21 Source: Palantir. Palantir guidance for Q4 2025: Revenue in the range of $1.327 billion to $1.331 billion. Adjusted income from operations in the range of $695 million to $699 million. The company raised guidance for full year 2025: Revenue guidance in the range of $4.396 billion to $4.4 billion. Adjusted income from operations in the range of $2.151 billion to $2.155 billion. Adjusted free cash flow in the range of $1.9 billion to $2.1 billion. Karp wrote a letter to shareholders, and as usual, he had comments about analysts: Zacks says Palantir is less reliant on government To gain a better understanding of Palantir’s earnings report, we contacted Brian Mulberry, senior portfolio manager at Zacks Investment Management. Zacks owns the following names across its ETFs and mutual funds: Alphabet, Amazon, AMD, Apple, Broadcom, Meta, Microsoft, Nvidia, Tesla, and Palantir. Mulberry stated that Palantir’s growth is supported by its AI strategy, modular approach, and exposure to a secular growth market, such as defense, along with a loyal customer base. In an email, he told TheStreet: “A strong balance sheet promises continued investor interest, and that is likely to continue after seeing such a strong result from Q3.” He noted that the strong growth in the government segment (+52% YoY) was absolutely eclipsed by a blowout in consumer revenues that were up 121% YoY. He sees this as a strong positive for Palantir, as it demonstrates two things at the same time: AI demand is strong and adoption rates are growing across both lines of business. The sales lines are approaching parity, and that means Palantir is becoming less reliant on government contracts alone for revenue growth. He concluded by saying that “operating margins were up 46% showing that as revenues grow, they are running more efficiently through to the bottom line and fed into a strong EPS beat of $0.21 over the consensus of $0.17.” Recent Palantir news Nvidia announced its GTC conference in Washington, D.C., in partnership with Palantir to build a first-of-its-kind integrated technology stack for operational AI, including analytics capabilities, reference workflows, automation features, and customizable, specialized AI agents. Palantir Ontology will integrate Nvidia GPU-accelerated data processing and route optimization libraries, as well as open models and accelerated computing. This combination of two platforms will provide context-aware reasoning necessary for operational AI. More Palantir Palantir could be staring at a big problem As Palantir rolls on, rivals are worth a second look Palantir quietly makes massive AI war play Red Cat Holdings (RCAT), a provider of drone and robotic solutions for defense and national security, performed successful flight testing of its Black Widow drone equipped with Palantir Visual Navigation (VNav) Software. Black Widow drones, currently part of the U.S. Army’s Short-Range Reconnaissance program of record, have been demonstrated to operate effectively in GPS-denied conditions using Palantir’s visual-based navigation software. According to the Red Cat, this was the first known commercial demonstration of visual navigation software on a drone that had already been accepted into a U.S. Army program.
