Alex Karp’s Palantir posts $884 million Q1 revenue

Key Points

• Palantir’s Q1 2025 revenue jumped 39% year-over-year to $883.86 million, driven by soaring demand across U.S. commercial and government sectors.
• U.S. commercial revenue rose 71% to $225 million, surpassing a $1 billion run rate, while government revenue climbed 45% to $373 million.
• CEO Alex Karp led Palantir to a record $214 million in net income, with strong cash flow and asset growth bolstering its enterprise AI leadership.

Palantir Technologies, an artificial intelligence (AI) and big data analytics firm co-founded and led by African-American tech billionaire Alex Karp, kicked off its 2025 fiscal year with robust results, posting $883.86 million in revenue—a 39 percent year-over-year increase.

The growth was powered by surging demand for its AI-driven platforms across both government and commercial sectors, marking a significant milestone in its private-sector expansion. This results underscore the company’s strategic momentum as it positions itself as the operating system for the modern enterprise in the era of AI.

US commercial and Government sectors drive growth

According to its recently released first quarter 2025 report, Palantir’s revenue jumped 39 percent year-over-year from $634.33 million to $883.86 million in Q1 2025, driven by strong U.S. market performance. The U.S. commercial segment led the charge, with revenue surging 71 percent to $225 million, surpassing a $1 billion annual run rate for the first time.

This momentum was reinforced by a 183 percent increase in total contract value and a 127 percent rise in remaining deal value to $2.32 billion, signaling deeper enterprise adoption. U.S. government revenue also grew 45 percent to $373 million, reflecting sustained demand for public-sector solutions.

The company closed 139 deals above $1 million—including 31 over $10 million—while its customer base expanded 39 percent year-over-year. Operationally, Palantir delivered $391 million in adjusted income and $370 million in adjusted free cash flow. CEO Alex Karp described Palantir as the “operating system for the modern enterprise in the era of AI,” and raised full-year guidance to 36 percent revenue growth and 68 percent growth in U.S. commercial revenue.

Palantir hits record income under Alex Karp

Alex Karp, Palantir’s co-founder and CEO, exemplifies African-American entrepreneurial success. Ranked 222nd on Forbes’ global rich list with a net worth of $11.3 billion, Karp’s leadership reflects Palantir’s ongoing success and strategic positioning under his leadership.

Under his leadership, the Denver-based software giant posted a record net income of $214 million in the first quarter of 2025—its most profitable quarter to date. Total assets rose 6.25 percent to $6.74 billion, while equity climbed 8.33 percent to $5.52 billion, reinforcing Palantir’s growing strength in the data analytics and AI space.

The company also generated $310 million in cash from operations and $370 million in adjusted free cash flow, highlighting its financial discipline and operational efficiency. As momentum builds across U.S. commercial and government sectors, Karp continues to solidify Palantir’s role as a leader in enterprise AI.