Palantir Technologies Reports 39% Revenue Growth to $883.9 Million in Latest Quarter

Palantir Technologies Inc. reported significant financial growth in its latest quarterly results, with revenue reaching $883.9 million for the three months ended March 31, 2025, a 39% increase from $634.3 million in the same period last year. The company also achieved a net income of $214.0 million, compared to $105.5 million in the prior year, reflecting a substantial rise in profitability. The gross profit margin for the quarter was 80%, down from 82% a year earlier, primarily due to increased costs associated with revenue generation.

The company experienced notable operational changes, including an increase in customer count from 554 to 769 year-over-year. This growth was driven by a 45% increase in revenue from government customers, which accounted for 55% of total revenue, while commercial customers contributed 45%. Palantir's U.S. customer base generated 71% of total revenue, highlighting the company's strong domestic market presence. The company also reported a total of 4,001 full-time employees as of March 31, 2025, reflecting its ongoing expansion.

Palantir's strategic initiatives included the continued rollout of its Artificial Intelligence Platform (AIP), which integrates generative AI capabilities into its existing software offerings. The company has also been actively engaging in stock repurchase activities, having repurchased approximately $18.0 million worth of its Class A common stock during the quarter under its $1.0 billion share repurchase program. As of March 31, 2025, approximately $917.8 million remained available for future repurchases.

The filing indicated that Palantir's cash and cash equivalents decreased to $993.5 million from $2.1 billion at the end of the previous quarter, largely due to increased investments in marketable securities. The company reported net cash provided by operating activities of $310.3 million, a significant increase from $129.6 million in the prior year, demonstrating improved cash flow management. However, net cash used in investing activities rose sharply to $1.4 billion, primarily due to increased purchases of U.S. Treasury securities.

Looking ahead, Palantir expressed optimism about its growth trajectory, emphasizing its commitment to expanding its customer base and enhancing its product offerings. The company acknowledged potential risks, including macroeconomic factors and competition, but remains focused on leveraging its technology to meet evolving customer needs. The management's forward-looking statements suggest a strong belief in the company's ability to sustain its growth and profitability in the coming quarters.