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Palantir Technologies Reports Strong Financial Growth

Palantir Technologies Inc. (NASDAQ: PLTR) has reported impressive financial results for the fourth quarter and fiscal year ended December 31, 2025. The company's U.S. commercial revenue saw exceptional growth, increasing by 137% year-over-year (y/y) in Q4 2025, while overall revenue grew by 70% y/y. The company's U.S. revenue for the full fiscal year 2025 also exhibited robust growth, increasing by 75% y/y to reach $3.32 billion.

In Q4 2025, Palantir closed a record-setting $4.262 billion of total contract value (TCV), reflecting a substantial 138% y/y increase. Additionally, the company achieved a rule of 40 score of 127%, indicating its ability to efficiently balance growth and profitability.

The financial highlights for the full fiscal year 2025 are equally impressive. Palantir's cash from operations amounted to $2.134 billion, representing a 48% margin, while adjusted free cash flow reached $2.270 billion, with a 51% margin. The company's GAAP net income for the year stood at $1.625 billion, representing a 36% margin, and its GAAP income from operations amounted to $1.414 billion, with a 32% margin.

Looking ahead, Palantir issued its fiscal year 2026 revenue guidance, expecting a 61% y/y growth, along with U.S. commercial revenue guidance of 115% y/y. For Q1 2026, the company anticipates revenue of between $1.532 * $1.536 billion and adjusted income from operations of between $870 * $874 million.

Palantir's CEO, Alex C. Karp, emphasized the company's unique focus on scaling the operational leverage made possible by the rapid advancements of AI models, and expressed confidence in their future outlook.

Palantir will hold a live public webcast to discuss these results and the financial outlook, which can be accessed through the company's website. As a result of these announcements, the company's shares have moved -3.45% on the market, and are now trading at a price of $170.96. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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