FY2025 revenue grew 56%; the company is GAAP-profitable and strongly cash-generative. Growth + high gross margin + net cash is the strongest combination. Stock compensation, rising share count and valuation—which the statements alone cannot answer—are the main cautions.
Palantir — what does it do?
Gotham, Foundry, Apollo and AIP help organisations connect data to decisions and operations. Revenue comes from software subscriptions and services sold to government and commercial customers.
What do the financial results show?
Revenue rose from $2.87bn to $4.48bn, gross profit reached $3.69bn and net income $1.63bn. Operations generated $2.13bn; after $33.9m of property and equipment purchases, approximate free cash flow was $2.10bn.
How should the balance sheet and cash be read?
Total assets were $8.90bn against $1.41bn of liabilities. That wide cushion supports resilience, but $684m of stock compensation and the higher year-end share count mean per-share growth must be monitored separately.
Critical combinations
- Fast revenue growth and high gross margin
- Positive GAAP profit and strong cash conversion
- Asset base far above liabilities
- High stock compensation and dilution
- Concentration in large contracts and government customers
- Financial quality does not mean cheap without live valuation
What matters next?
The Q2 2026 company release shows faster growth and continued profitability. This later information is not treated as a cause of FY2025 results; customer growth, contract conversion and per-share cash generation are the forward tests.
Financial health appears strong. For that to translate into investment returns, growth must endure and the price paid must not assume too much of that quality. This is not investment advice.
Where the figures come from
- Palantir FY2025 Form 10-K, SEC — Primary period ended 31 December 2025.
- Palantir Q2 2026 results — Later context; not back-applied to the primary period.