Palantir Technologies’ Q3 2025: AI Fueled Growth, Higher Forecasts
Palantir’s strong performance is powered by rapid adoption of its AI-powered platform across commercial and government sectors. The U.S. commercial segment in particular is gaining momentum, with large deals signed and revenue climbing fast.
CEO Alex Karp described the quarter’s growth as “otherworldly,” emphasising that customers are paying for real transformation, not just software.
Investors’ View & Caution
Despite the beats, investors remain cautious. Palantir’s stock trades at very lofty valuations—with forward price-to-earnings ratios higher than even many big tech peers. Some analysts highlight that the high expectations are already baked-in.
What to Watch Next
- Can international and non-U.S. commercial revenue growth match the pace of the U.S.?
- How will government contract delays or budget changes affect growth ahead?
- Will Palantir turn the large contract backlog into sustained cash-flow and profitability over time?
Bottom Line: Palantir delivered a standout Q3, showing true growth in the AI race. While the runway looks strong, the company must justify its steep valuation by converting promise into sustained performance.
