Palantir reported third-quarter revenue growth of 63% year-over-year, marking the ninth consecutive quarter of accelerating top-line expansion. Non-GAAP net income more than doubled, rising 110% to $0.21 per diluted share, while gross margins reached a record 80.8%. These results reflect strong operational leverage and a disciplined cost structure, as sales and marketing expenses grew at a slower rate than revenue, boosting adjusted operating margins to their highest level since the company’s public debut.

In Q3-FY2025, Palantir’s U.S. commercial segment delivered revenue growth of 121% year-over-year, driven by the expansion of its Bootcamp sales model. Total contract value in the commercial channel jumped 342%, as rapid deal-closing cycles and modular pricing options attracted new enterprise clients. Senior management highlighted that over 30 Fortune 500 customers are now in production on the AIPlatform, up from 18 a year ago, underscoring the momentum of enterprise AI deployments across industries such as manufacturing, healthcare and financial services.

Palantir’s return on equity stood at 27.6%, trailing some peers but reflecting the impact of heavy upfront spending on its AIPlatform roadmap. The company continues to invest in modular product development and extend long-cycle contracts, with a weighted average contract term of 4.2 years. Management forecasts that these strategic investments will translate into durable long-term returns, as recurring revenue now represents 85% of total bookings and customer renewal rates exceed 95%.