Alex Karp Says ‘We Were Right, You Were Wrong’ as Palantir Delivers Record Revenue. Should You Buy PLTR Stock Here?

Core Insights - Palantir's stock has surged by 150% in 2025, driven by investor enthusiasm for AI-related narratives and strong revenue growth [1] - The company reported a revenue increase of 63% year-on-year for Q3 2025, reaching $1.18 billion, with significant contributions from both U.S. commercial and government sectors [5][6] - Despite the strong performance, there are indications of potential price corrections following the stock's rally prior to earnings [2] Financial Performance - For Q3 2025, Palantir's revenue from the U.S. was $883 million, accounting for nearly 75% of total revenue [8] - The U.S. commercial segment saw a remarkable growth of 121%, while government revenue increased by 52% [5] - The total contract value (TCV) reached a record $2.8 billion, marking a 151% increase year-on-year [5] Cash Flow and Valuation - Palantir reported adjusted free cash flow of $540 million for Q3, with guidance for $2 billion in adjusted free cash flow for FY 2025 [6] - The company holds $6.4 billion in cash and equivalents, providing significant financial flexibility for future investments [6] Growth Drivers - The company's growth trajectory is supported by its four main software platforms: Gotham, Foundry, Apollo, and the Artificial Intelligence Platform [3] - International expansion is expected to further accelerate growth, as Palantir increases its presence in global markets [8]