Palantir earned $1,625.0 million of net income in 2025 (attributable to common stockholders), up from $462.2 million in 2024 and $209.8 million in 2023, on revenue of $4,475.4 million, up 56%. Profits kept accelerating in 2026: in the first nine months net income reached $3,060.4 million, and in the third quarter alone it was $1,128.0 million, a 49% net margin. In 2022 and 2021 Palantir had reported net losses of $373.7 million and $520.4 million.
Cost of revenue was 18% of revenue in 2025, so gross margin was 82%. Most of each extra dollar of software revenue is available to cover operating costs.
02
Operating leverage
Total operating expenses rose 14% to $2,272.3 million in 2025 while revenue rose 56%. Operating expenses fell from 76% of revenue in 2023 to 50% in 2025, and income from operations reached $1,414.0 million.
Interest income added $229.2 million in 2025. Palantir held $10.4 billion of cash, cash equivalents and U.S. Treasury securities at 30 September 2026.
04
Low tax charge
The provision for income taxes was $22.7 million in 2025 on $1,657.4 million of pre-tax income.
What changed in 2025-26
Profit jumped 3.5 times in a year
Net income attributable to common stockholders rose from $462.2 million in 2024 to $1,625.0 million in 2025. The operating margin went from 11% to 32%.
Palantir began deploying AIP, its Artificial Intelligence Platform that combines its software with large language models, in 2023. In the third quarter of 2026 U.S. commercial revenue grew 148% to $984 million and passed U.S. government revenue for the first time.
Third quarter 2026: margins near 50%
Revenue rose 96% to $2,313.4 million. GAAP income from operations was $1,084.8 million, a 47% margin, and net income $1,128.0 million, a 49% margin.
Guidance raised again
Palantir raised its full-year 2026 revenue guidance to $8,530-8,534 million and said it expects GAAP operating income and net income in each quarter of 2026.
Palantir profits by year
2021
Revenue$1,541.9 million
Net income attributable to common stockholdersLoss of $520.4 million
2022
Revenue$1,905.9 million
Net income attributable to common stockholdersLoss of $373.7 million
2023
Revenue$2,225.0 million
Net income attributable to common stockholders$209.8 million
2024
Revenue$2,865.5 million
Net income attributable to common stockholders$462.2 million
2025
Revenue$4,475.4 million
Net income attributable to common stockholders$1,625.0 million
Nine months to 30 Sep 2026
Revenue$5,881.5 million
Net income attributable to common stockholders$3,060.4 million
What it means for you
Look at operating expenses as a share of revenue: Palantir's drop from 76% to 50% in two years explains most of the profit jump.
Separate operating profit from interest income; a large cash pile adds to net income without any software sales.
Use GAAP net income for comparisons; Palantir also reports adjusted figures that exclude stock-based compensation.
Track U.S. commercial revenue as the growth engine and government revenue as the base.
For AI software vendors, ask whether new revenue arrives with low delivery cost; that is what turned Palantir's growth into profit.
The Business Engineer lens
Palantir shows what operating leverage looks like when AI demand meets a software cost base: revenue nearly doubled while costs grew far slower. The Business Engineer view: its ontology turns AI models into workflows customers pay for, which is why the margin story runs through U.S. commercial deals.
The complete explainer, cleaned up and reformatted for mobile.
Palantir was profitable in 2023, as it generated $209.82 million in profits, compared to a net loss of $373.7 million in 2022. and a net loss of $520.38 million in 2021.
How Palantir Technologies Inc. (NASDAQ: PLTR) makes money, FY2025: the income statement as a flow, to scale. US customers supplied 74% of Palantir's $4.5 billion 2025 revenue. Source: Palantir Technologies Inc. (NASDAQ: PLTR) Form 10-K for fiscal 2025 (filed 2026-02-17). Gross profit, margins and shares calculated. Full analysis: how Palantir makes money.Watch (61 seconds): Palantir: where the money comes from, step by step, with captions. Figures from the filing named at the end.
In 2023, Palantir generated $1.22 billion from government customers and $1.00 billion from commercial customers. Commercial clients’ business is picking up compared to government contracts.
Palantir was profitable in 2023, as it generated $209.82 million in profits, compared to a net loss of $373.7 million in 2022. and a net loss of $520.38 million in 2021.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
