Palantir Technologies (PLTR) delivered a standout performance in Q1 2025, underscoring its accelerating momentum and strengthening leadership in enterprise AI. The company posted revenue of $883.9 million, a robust 39% increase year-over-year, fueled by exceptional growth in its U.S. operations. Particularly notable was the 71% year-over-year surge in U.S. commercial revenue to $255.5 million, highlighting rapid adoption of Palantir’s AI Platform (AIP) across private sector enterprises. U.S. government revenue also rose 45% to $373.0 million, contributing to total U.S. revenue of $628.5 million, or 71% of total revenue.
Profitability remained a strong suit, with GAAP income from operations of $176.0 million (20% margin) and adjusted income from operations reaching $390.7 million (44% margin). Net income attributable to common stockholders stood at $214.0 million (24% margin), while adjusted net income totaled $334.4 million. The company continued to generate solid cash flow, reporting $310.3 million in cash from operations and an adjusted free cash flow of $370.4 million, representing a 42% margin. Gross profit came in at $710.9 million, with an impressive 80% gross margin. Palantir’s adjusted EBITDA reached $397.3 million, a 45% margin.
Palantir’s customer base expanded to 769, up 39% year-over-year, with strong contributions from both new client wins and expansion within existing accounts. The company closed 139 deals worth at least $1 million, including 31 valued at $10 million or more. Its U.S. commercial total contract value soared 183% year-over-year to $810 million, while remaining deal value jumped 127% to $2.32 billion. The top 20 customers generated an average trailing twelve-month revenue of $69.9 million, up 26% year-over-year.
Management reported a Rule of 40 score of 83%, underscoring the rare combination of high growth and profitability. CEO Alex Karp described the quarter as a “tectonic shift” in software adoption, driven by Palantir’s growing role as “the operating system for the modern enterprise in the era of AI.” The company continues to invest in AI product development and talent while actively returning capital to shareholders, having repurchased $18 million in shares during the quarter with $917.8 million remaining authorized.
Looking ahead, Palantir raised its full-year 2025 revenue guidance to $3.890–$3.902 billion, reflecting 36% year-over-year growth, and increased its outlook for U.S. commercial revenue to over $1.178 billion (at least 68% growth). The company also expects adjusted operating income of $1.711–$1.723 billion and adjusted free cash flow between $1.6–$1.8 billion, reaffirming expectations for GAAP profitability in every quarter of 2025.