Palantir has increased its revenue guidance for 2025, citing strong growth in both commercial and government sectors. The company now anticipates revenue to reach approximately $4.40 billion for the fiscal year. This revision marks the third time this year that Palantir has raised its sales forecast, driven by high demand for its AI-powered software.
The data analytics firm's Q3 earnings surpassed expectations, with revenue up 62.8% year-on-year to $1.18 billion. Palantir's U.S. commercial revenue has seen a significant surge, climbing 121% year-on-year. The company's Artificial Intelligence Platform (AIP) is a key driver of this growth, attracting strong interest from both government and commercial clients. Palantir has secured a landmark $10 billion US Army contract over 10 years.
Palantir's financial performance has led to a debate about its valuation, with the stock trading at a high forward price-to-earnings ratio. Despite this, the company's management is confident in sustaining its growth trajectory, as demonstrated by increased hiring and investment in talent.
