Palantir Q4 Revenue Soars 70% with 57% Margin and $7.2B Cash
Palantir shares fell 16% over the past three months before rallying 12% in the last month, driven by accelerating enterprise demand. In Q4 2025 revenue jumped 70% year-over-year with a record 57% adjusted operating margin and $7.2 billion cash on the balance sheet.
1. Stock Rally and Volatility
Palantir shares declined 16% over the past three months before rebounding 12% in the last month, reflecting renewed investor confidence in its commercial AI deployments following a period of underperformance.
2. Robust Q4 Financial Results
In Q4 2025 total revenue rose 70% year-over-year, adjusted operating margin reached 57%, operating income was $575.4 million and net income hit $608.7 million, while diluted EPS more than doubled year-over-year.
3. Commercial Growth Powered by Foundry
U.S. commercial revenue surged 137% year-over-year, driven by Foundry’s low-code data integration platform; Palantir closed 61 deals exceeding $10 million, underscoring strong enterprise demand for operational AI solutions.
4. Strong Balance Sheet and Outlook
With $7.2 billion in cash and no debt, Palantir has flexibility for further investment; consensus estimates project Q1 2026 EPS of $0.29 (123% growth) and sales growth of 74% year-over-year.