Palantir Earnings: Good or Bad?

Beloved Palantir PLTR reported its Q3 results, reflecting one of the more sought-after releases in the Q3 cycle overall. It’s easy to see why so many have been laser-focused on the software titan, with recent short positions and broader uncertainty largely dominating the narrative around the stock over the past few weeks.

But were the results good? Let’s take a closer look at a few key growth indicators.

Growth Remains Stellar

Regarding the top line, quarterly sales of $1.2 billion set another record, up a sizable 63% from the year-ago period. Growth was broad-based, with US commercial revenue surging 121% YoY and US government revenue shooting 52% higher.

PLTR inked many lucrative deals throughout the period, closing more than 200 deals worth at least $1 million, 91 worth at least $5 million, and 53 deals worth at least $10 million. It closed a record-setting $2.8 billion of Total Contract Value (TCV) overall, up a staggering 340% from the same period last year.

And for the cherry on top, Customer count grew by a massive 45% YoY. It goes without saying that the company has continued to witness extremely hot momentum, underpinned by a rapidly growing customer base.

Below is a chart illustrating Palantir’s sales on a quarterly basis.

To top off the robust results, Palantir provided its highest sequential quarterly revenue growth guide in its history for its Q4 (61% growth expected), while also increasing its current year sales, adjusted operating income, and adjusted free cash flow guidance.

Putting Everything Together

Palantir PLTR again posted robust quarterly results and provided a rosy outlook for its upcoming periods and current fiscal year. Growth was immense again, with a snowballing customer count and more lucrative deals providing obvious growth tailwinds.

While the share reaction may be muted relative to how good the results were, it’s worth noting that PLTR shares have already climbed +140% in 2025, with the earnings positivity likely baked in over the past few weeks. Nonetheless, the company remains a prime selection for those seeking exposure to software and the AI trade, underpinned by massive growth rates and big demand forecasts.

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This article originally published on Zacks Investment Research (zacks.com).

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