AI Takeaway
Palantir delivered a breakout FY2025, with revenue surging 56.2% to $4.48B, operating income exploding 355.5% to $1.41B, and free cash flow nearly doubling, reflecting accelerating AI-driven demand across both government and commercial segments.
Revenue
$4.48B
++56.18% YoY
EPS (Basic)
$0.69
++228.57% YoY
Gross Margin
82.4%
++2.12% YoY
Operating Income
$1.41B
++355.54% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue grew 56.2% year-over-year to $4.48B in FY2025, up from $2.87B in the prior year, reflecting strong momentum in AI platform adoption across government and commercial customers. This acceleration is notable given the company's scale and suggests demand for Palantir's AIP (Artificial Intelligence Platform) is broadening materially.
Source: Source: 10-K Income Statement
Operating income surged 355.5% to $1.41B, pushing operating margin from 10.8% to 31.6% — a 20.8 percentage point improvement. This dramatic expansion indicates that revenue growth is significantly outpacing cost growth, with cost of revenue rising only 39.4% versus revenue growth of 56.2%, demonstrating strong operating leverage.
Source: Source: 10-K Income Statement
Gross margin improved 212 basis points to 82.4% from 80.2%, reflecting the high-margin, software-centric nature of Palantir's business and the scalability of its platform as it adds customers without proportional cost increases.
Source: Source: 10-K Key Ratios
2 more insights available
Upgrade to unlockA significant portion of Palantir's revenue historically derives from U.S. and international government contracts, which are subject to budget cycles, political shifts, and contract renewal risk. Any reduction in government spending on defense or intelligence technology could disproportionately impact revenue. Changes in administration priorities or geopolitical dynamics add further uncertainty.
Source: Source: 10-K Risk Factors (inferred from business model)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.25 versus the $0.23 analyst consensus — a +6.5% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $4.48B | $2.87B | +56.18% |
Cost of Revenue | $789.18M | $565.99M | +39.43% |
Gross Profit | $3.69B | $2.3B | +60.31% |
Operating Income | $1.41B | $310.4M | +355.54% |
Net Income | $1.63B | $462.19M | +251.59% |
EPS (Basic) | $0.69 | $0.21 | +228.57% |
EPS (Diluted) | $0.63 | $0.19 | +231.58% |
R&D Expense | $557.68M | $507.88M | +9.81% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $8.9B | $6.34B | +40.37% |
Current Assets | $8.36B | $5.93B | +40.85% |
Total Liabilities | $1.41B | $1.25B | +13.31% |
Current Liabilities | $1.18B | $996.02M | +18.03% |
Stockholders' Equity | $7.39B | $5B | +47.65% |
Cash & Equivalents | $1.42B | $2.1B | -32.15% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.13B | $1.15B | +84.98% |
Investing Cash Flow | $-2.78B | $-340.65M | -717.12% |
Financing Cash Flow | $-26.91M | $463.36M | -105.81% |
Share Buybacks | $74.98M | $64.2M | +16.81% |
D&A | $26.14M | $31.59M | -17.23% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 82.4% | 80.2% | +2.12% |
Operating Margin | 31.6% | 10.8% | +20.76% |
Net Margin | 36.3% | — | — |
ROE | 22.0% | — | — |
ROA | 18.3% | — | — |
Current Ratio | $7.11 | — | — |
Debt to Equity | $0.191 | — | — |
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Palantir's revenue grew 56.2% year-over-year in FY2025, reaching $4.48B compared to $2.87B in the prior year. This acceleration reflects strong demand for its AI platform (AIP) across both government and commercial customers.
Yes, Palantir was highly profitable in FY2025, reporting net income of $1.63B (up 251.6%) and diluted EPS of $0.63. The company's net margin reached 36.3%, making it one of the most profitable large-cap software companies by margin.
The key takeaways from Palantir's FY2025 results are: revenue surged 56.2% to $4.48B, operating income exploded 355.5% to $1.41B as margins expanded dramatically, and operating cash flow nearly doubled to $2.13B. These results reflect a major inflection in Palantir's AI-driven business model.
Palantir's financial health is exceptionally strong — it carries a current ratio of 7.1x, debt-to-equity of just 0.19, and stockholders' equity of $7.39B. The company is nearly debt-free and generated $2.13B in operating cash flow in FY2025.
Key risks for Palantir include dependency on government contracts subject to budget and political changes, the risk of growth deceleration given high market valuation expectations, and potential dilution from stock-based compensation. Additionally, a large $2.78B investing cash outflow warrants monitoring for capital allocation effectiveness.