PLTR
PLTR 3Q25: Another Strong Quarter, Fueled by AI and Commercial Expansion
FUNDA
Beat-and-raise quarter; AIP-fueled US commercial +121% and Army standardization drive upside to Q4.
In line with our preview, both Government and Commercial segments accelerated this quarter, delivering a clear beat and raise, though the stock saw only minor post-market fluctuations.
Financial Highlights
Revenue Growth: Q3 revenue grew 63% YoY, up from 48% YoY in Q2, exceeding the top end of guidance by 9% and consensus by 6%. Management called it: “These are arguably the best results any software company has ever delivered.”
Government Revenue: +55% YoY (vs. +49% in Q2). U.S. Government: +52% YoY (vs. +53% in Q2, slightly slower). Non-U.S. Government: +66% YoY (vs. +37% in Q2, sharply higher). The muted growth in U.S. Government revenue likely reflected the temporary government shutdown, which delayed implementation in civilian departments. This will require further information and close monitoring in coming months.
Commercial Revenue: +72% YoY (vs. +47% in Q2). U.S. Commercial: +121% YoY (vs. +93%), exceptionally strong. Non-U.S. Commercial: +9% YoY (vs. –3%), indicating some recovery, though management noted Europe remains weak overall.
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