In its Q3 2025 report, Palantir exceeded analyst expectations with EPS of $0.21 versus $0.17 forecast and revenue of $1.18 billion compared to estimates of $1.09 billion, marking the company’s seventh consecutive quarterly EPS beat and ninth in ten quarters. Despite a 3.8% decline over the first five trading days of 2026 following a 1.68% drop in late 2025, Palantir remains up 146.92% over the past year and has delivered a cumulative gain of 1,758.37% since its October 2020 IPO. Gross margin continues to exceed 80%, underpinning strong operational leverage as the company scales its AI platforms across government and commercial segments.

Palantir has secured a series of high-value contracts in the last year, including a £1.5 billion partnership with the U.K. government for defense data integration, a $10 billion multi-year agreement with the U.S. Army, and a $30 million immigration lifecycle system for U.S. Immigration and Customs Enforcement. Government-sourced revenue has outpaced commercial sales each year since 2020, reaching $1.222 billion in 2023 versus $1.002 billion from commercial clients. With its SaaS platforms among only five authorized for the Department of Defense’s Mission Critical National Security Systems, Palantir is positioned to benefit from the U.S. federal budget’s continued emphasis on defense and intelligence spending.

Analysts project Palantir’s revenue to grow from $4.20 billion in 2026 to $8.48 billion by 2030, representing a compound annual growth rate of approximately 19%. Net income is forecast to rise from $1.47 billion in 2026 to nearly $3.0 billion in 2030, with EPS climbing from $0.56 to $1.27 over the same period. These forecasts assume a 26% annual increase in sales of government contracts and substantial modular growth in the commercial segment. Free cash flow is expected to approach $6 billion by 2030, supporting ongoing R&D investments and potential share repurchase programs to enhance shareholder returns.