Palantir Logs $4.4B Revenue and Zero Federal Tax, Secures Rackspace Partnership
Palantir reported $1.5B US income in Q4 and $4.4B revenue for 2025 while paying zero federal income taxes, leveraging $2.5M in state R&D credits. It partnered with Rackspace to accelerate Foundry and AIP deployments, but faces investor skepticism from Michael Burry and maintains a Neutral rating from DA Davidson.
1. Zero Federal Income Taxes
Palantir’s annual report shows US income of $1.5 billion in Q4 and $4.4 billion in total revenue for 2025. Despite generating billions in profits, the company reported no federal income tax liability and claimed over $2.5 million in state research and development credits.
2. Rackspace Partnership
On February 18, Palantir named Rackspace Technology as its dedicated data migration and global implementation partner for Foundry and its Artificial Intelligence Platform. This collaboration is designed to cut enterprise deployment timelines from months to weeks by providing pre-built security, compliance and cloud infrastructure controls.
3. Investor Skepticism
Investor Michael Burry published an extensive critique questioning Palantir’s AI investment sustainability and highlighting stock-based compensation as an expense illusion. In response, DA Davidson maintained its Neutral rating, acknowledging broader AI cycle concerns while distinguishing them from Palantir’s specific business fundamentals.