🌐 What the Company Does — Palantir Overview
Palantir Technologies (PLTR) builds AI-driven data platforms for governments and large enterprises. Its three main products are:
- AIP — AI platform for building secure, real-world Generative AI workflows
- Gotham — used by defense and intelligence agencies
- Foundry — used by commercial companies to unify data and run operations
Palantir positions itself as an AI infrastructure provider, enabling organizations to deploy AI safely at large scale.
📊 Financial Highlights (Q3 2025)
- Revenue up sharply YoY, driven mainly by fast adoption of AIP
- Profitability increased, with higher margins and strong operating leverage
- Operating cash flow nearly doubled, showing stronger underlying performance
- Balance sheet remains strong, with no long-term debt and substantial liquidity
Plain English:
The company is growing quickly and making more profit from each dollar of revenue.
⚠️ Key Risks
- Heavy reliance on government contracts, which can be delayed or changed
- AI model risks, including biased or unreliable outputs
- Data security and compliance risks, given the sensitive environments Palantir works in
- Long sales cycles and difficulty converting pilot projects into large contracts
- Exposure to changing regulations, especially around AI and national security
Plain English:
Government spending, AI reliability, and data security are the main sources of uncertainty.
🧭 MD&A — Management’s Key Points
- Strong demand for AIP across government and commercial customers
- Significant improvements in profitability and margins
- U.S. commercial business accelerating with more customer wins
- Continued strength in government contracts
- Ongoing investment in AI innovation and new product capabilities
Plain English:
Management says growth is broad, profits are improving, and AIP adoption is accelerating.
✅ Takeaway
Palantir continues to expand as a major AI platform provider, showing strong growth, rising profitability, and solid cash generation. However, the company’s dependence on government work, AI-related risks, and evolving regulations are important considerations for investors.
📄 Income Statement Summary (unaudited)
($m)
| Q3 FY2025 | Q3 FY2024 | 9M FY2025 | 9M FY2024 | |
|---|---|---|---|---|
| Revenue | 1,181.1 | 725.5 | 3,068.6 | 2,038.0 |
| Gross Profit | 973.8 | 578.9 | 2,495.4 | 1,646.5 |
| Operating Income | 393.3 | 113.1 | 838.6 | 299.4 |
| Net Income | 476.7 | 149.3 | 1,023.0 | 391.0 |
| EPS ($, Diluted) | 0.18 | 0.06 | 0.40 | 0.16 |
Plain English:
Revenue jumped 62.8% YoY, and net income increased more than 3× thanks to strong demand for Palantir’s AI platform (AIP) and disciplined spending. Over the first nine months of 2025, profits nearly doubled, and the company continues to show strong operational momentum.
📈 Key Profitability Ratios
| Ratio | Q3 FY2025 | Q3 FY2024 | 9M FY2025 | 9M FY2024 |
|---|---|---|---|---|
| Gross Margin (%) | 82.4% | 79.8% | 81.4% | 80.8% |
| Operating Margin (%) | 33.3% | 15.6% | 27.3% | 14.7% |
| Net Margin (%) | 40.4% | 20.6% | 33.4% | 19.2% |
Plain English:
Palantir became dramatically more profitable. Margins widened across the board — a classic sign of operating leverage, meaning profits grow faster than revenue.
📝 Disclaimer
This article is intended for educational purposes only. It does not constitute financial, investment, or legal advice. All investment decisions involve risks, and readers should conduct their own research or consult with a licensed financial advisor.
👉 Palantir (PLTR) Q3 2025 10-Q Analysis (Filed 2025) | Explained for Beginners