Palantir Reports 70% Revenue Growth and New $300 Million USDA Deal

Palantir Technologies reported strong financial results for fiscal year 2025, highlighted by fourth-quarter revenue of $1.41 billion, a 70% year-over-year increase. This growth was driven largely by the company's Artificial Intelligence Platform (AIP) boot camps, which streamlined enterprise software sales and pushed U.S. commercial revenue up 137% to $507 million in the final quarter. The company reported nearly $800 million in adjusted free cash flow for the period, with adjusted operating margins reaching 57%.

Alongside these results, Palantir entered into a $300 million software purchase agreement with the U.S. Department of Agriculture. The company also noted increased demand for its software across Israel, Ukraine, and NATO amid rising global tensions. Management provided fiscal year 2026 revenue guidance between $7.18 billion and $7.20 billion, with the U.S. commercial segment projected to exceed $3.14 billion.

Despite the financial gains and a total annual revenue of approximately $4.48 billion, Palantir shares fell 7.2% on April 23, 2026. The decline followed a broader software sector sell-off sparked by a poor market reaction to a quarterly report from ServiceNow. Some analysts also pointed to a deceleration in remaining deal value and total contract value growth compared to the third quarter of 2025.