'Customer US Army’: This AI stock jumped 118% in 2025
In its Q3 2025 report, Palantir posted revenue of $1.181 billion, up 63 per cent year-over-year, surpassing Wall Street estimates. Its commercial revenue in the US jumped 121 per cent in that quarter to $397 million.
1. Massive Contract with the US Army
Palantir announced a landmark enterprise agreement with the United States Army worth up to $10 billion over 10 years, consolidating 75 smaller contracts into one streamlined deal. While this is a ceiling rather than guaranteed spend, it signals deep trust and long-term partnership with the US military.
2. Very Strong Revenue Growth in 2025
In its Q3 2025 report, Palantir posted revenue of $1.181 billion, up 63 per cent year-over-year, surpassing Wall Street estimates. Its commercial revenue in the US jumped 121 per cent in that quarter to $397 million. These numbers demonstrate the company’s growth traction beyond just government.
3. Stock-price Surge in 2025
According to Trading Views, Palantir’s stock was up around 130 per cent year-to-date in 2025 at one point, making it among the best-performing stocks in the S&P 500. 118 per cent is a reasonable ballpark figure for a media headline.
4. AI Narrative + Commercial Expansion
Palantir has positioned itself as an AI-software player, bridging government and enterprise sectors. Analysts highlight its technology stack and growing commercial base as key drivers. This stronger narrative likely helped fuel investor interest.
5. Government & Commercial Mix
While government contracts (including the Army deal) underpin part of the business, Palantir’s US commercial revenue growth has become a major story: eg, a 121 per cent increase in Q3. That diversification is notable for a company with roots in defence and intelligence.
6. Raised Guidance & Strong Outlook
In August 2025 the company raised its full-year 2025 revenue guidance to 53 per cent growth and increased expectations for operating income. Raised guidance often signals confidence and helps drive stock gains.
7. Valuation Risk & Heavy Expectations
Despite the strong performance, analysts caution that the stock has become richly valued. The “blessed by Army contracts + AI” story may already be largely priced in. Indeed, even after the strong results, Palantir’s share price slipped on some guidance nuance. Investors should note that high growth comes with high expectations and risk.
Final Outlook
Palantir’s 100-150 per cent + return in 2025 (depending on timing) is backed by real growth numbers and a major US Army enterprise deal. However, it’s important to recognise that the $10 billion contract is a maximum, not guaranteed spend, and the stock’s valuation is under scrutiny.
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