01—Abstract
Summary
Summary of the 10-K filed February 17, 2026. Cited figures are marked; the original filing is the authoritative source.
Palantir Technologies Inc. reported strong financial performance for the year ended December 31, 2025, with a significant 56% increase in total revenue to $4.5 billiona, driven by robust growth in both government (53% increase) and commercial (60% increase) segments.
The company's expanded customer base to 954, up from 711 in the prior year, and a notable increase in average revenue from the top twenty customers to $93.9 millionb, signal deepening client relationships and successful platform adoption. Financially, Palantir demonstrated improved profitability with income from operations reaching $1.4 billion, a substantial increase from $310.4 million in the previous year. This growth was supported by an expanding gross margin of 82% (84% excluding stock-based compensation).
The company also saw a healthy increase in cash flow from operations to $2.1 billionc. Total remaining deal value reached $11.2 billion, indicating a strong pipeline for future revenue. The company continues to invest heavily in its core platforms: Gotham, Foundry, Apollo, and the newly emphasized Artificial Intelligence Platform (AIP), highlighting its commitment to innovation, particularly in AI.
Palantir's strategic focus on tackling complex, large-scale challenges and its ability to deploy solutions rapidly, often in days, positions it favorably against longer internal development cycles of its customers. The company's emphasis on privacy and civil liberties, integrated into its platform design, further differentiates its offerings in a sensitive market.
02—Key points
Key Highlights
- Revenue surged by 56% year-over-year to $4.5 billion for the fiscal year ended December 31, 2025.
- Both government and commercial segments experienced strong growth, with revenue increasing by 53% and 60% respectively.
- The total customer count grew to 954, up from 711 in the prior year, indicating successful market penetration.
- Income from operations significantly increased to $1.4 billion, demonstrating improved profitability and operational efficiency.
- Gross margin expanded to 82% (84% excluding stock-based compensation), reflecting strong pricing power and cost management.
- Total remaining deal value reached $11.2 billion, signaling a robust sales pipeline for future revenue.
- Palantir continues to invest in its Artificial Intelligence Platform (AIP), aligning with the growing demand for AI-driven solutions.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Palantir Technologies Inc. kept $0.36.
- Revenue$4.48B100.0%
- Cost of revenue−$789.2M17.6%
- Gross profit$3.69B82.4%
- Operating costs−$2.27B50.8%
- Operating income$1.41B31.6%
- Interest, other & tax$211.0M4.7%
- Net income$1.63B36.3%
Where FY2025 revenue went
$4.48B- Other operating costs: $1.71B, 38% of revenue
- Operating income: $1.41B, 32% of revenue
- Cost of revenue: $789.2M, 18% of revenue
- R&D: $557.7M, 12% of revenue
Kept 32% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 17, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $4.48B$2.87B | +56.2% |
| Cost of Revenue | $789.18M$565.99M | +39.4% |
| Gross Profit | $3.69B$2.30B | +60.3% |
| R&D Expenses | $557.68M$507.88M | +9.8% |
| Operating Expenses | $2.27B$1.99B | +14.2% |
| Operating Income | $1.41B$310.40M | +355.5% |
| Net Income | $1.63B$462.19M | +251.6% |
| EPS (Basic) | $0.69$0.21 | +228.6% |
| EPS (Diluted) | $0.63$0.19 | +231.6% |
| Shares Outstanding (Basic) | 2.37B2.25B | +5.3% |
| Shares Outstanding (Diluted) | 2.57B2.45B | +4.7% |
05—Questions
Frequently Asked Questions
What was Palantir's revenue performance in the fiscal year ended December 31, 2025?
Palantir Technologies Inc. reported a significant increase in revenue, reaching $4.5 billion for the year ended December 31, 2025, representing a 56% growth compared to the prior year. This growth was driven by both the government and commercial sectors.
How did Palantir's profitability evolve in fiscal year 2025?
The company demonstrated improved profitability, with income from operations reaching $1.4 billion for the year ended December 31, 2025, a substantial increase from $310.4 million in the prior year. This was supported by an expanding gross margin of 82%.
What is the significance of Palantir's 'Total Remaining Deal Value'?
The Total Remaining Deal Value, reported at $11.2 billion as of December 31, 2025, represents the total remaining value of customer contracts, including options but excluding potential terminations. This metric indicates Palantir's strong sales pipeline and the long-term revenue potential from its existing customer agreements.
How is Palantir addressing the growth of Artificial Intelligence (AI)?
Palantir has developed and is actively deploying its Artificial Intelligence Platform (AIP), which integrates generative AI models and Large Language Models (LLMs) with customers' data and operations. This platform is designed to enable secure, ethical, and responsible AI deployment, allowing organizations to derive value from AI advancements.
How does Palantir's customer acquisition strategy differ from traditional software companies?
Palantir often targets large-scale, complex, and difficult-to-execute opportunities that other companies may avoid due to high installation costs, failure risks, and long sales cycles. The company's ability to rapidly deploy solutions, often in days through initiatives like AIP bootcamps, and its focus on embedding with customers to understand and solve their most pressing problems, are key differentiators.
06—Continue