Palantir (PLTR) Net Income History: Quarterly Data (2020–2025)

Palantir Net Income: 2020–2025

Palantir Technologies (PLTR) reported GAAP net income of $609 million in Q4 2025 (October–December 2025), up 670% from $79 million in Q4 2024. Full-year 2025 net income reached $1.626 billion — a 251% increase from $463 million in 2024. Palantir’s net income now exceeds its net income for the entire 2021–2023 period combined.

The GAAP net income chart for Palantir shows a business that spent more than two years of public trading deeply in the red and has since achieved profitability levels that rival much older enterprise software companies. The shift is remarkable: in 2021, Palantir lost $520 million. By 2025, it earned $1.626 billion. This swing of over $2 billion in net income over four years is the quantitative signature of operating leverage reaching critical mass.

Palantir Annual GAAP Net Income by Year

Source: SEC EDGAR XBRL. 2021 excludes Q3 2020 direct listing SBC spike.

Net Income vs. Operating Income: The Interest Income Boost

Palantir’s net income occasionally diverges from operating income due to interest and investment income. Palantir has maintained a significant cash and short-term investment portfolio since its direct listing — built from IPO proceeds and subsequent free cash flow generation. As interest rates rose from near-zero in 2022 to 4–5% in 2023–2024, Palantir’s investment income became meaningful.

In Q4 2022, Palantir reported positive net income ($31 million) even while still recording a GAAP operating loss (-$18 million). This quirk — profits at the net income line before operational profitability — was driven by investment income, not operations. It generated significant debate about whether GAAP profitability had truly been achieved. Full operational GAAP profitability came in Q1 2023 with positive operating income of $4 million.

First Full Year of GAAP Profitability: 2023

Calendar year 2023 was Palantir’s first full calendar year reporting positive GAAP net income ($210 million). The significance went beyond accounting: S&P 500 membership requires recent GAAP profitability, and Palantir’s inclusion in the S&P 500 in September 2023 was contingent on demonstrating it. The index inclusion triggered mandatory passive buying from index funds and ETFs that track the S&P 500 — an event that meaningfully supported the stock during the period.

GAAP profitability also validated the company’s long-standing argument that adjusted operating income (which excluded SBC) was a better representation of true business economics. Critics had argued that SBC would never meaningfully decline as a share of revenue; Palantir’s trajectory from 50% SBC/revenue in 2021 to 15% in 2025 proved otherwise. See Palantir Stock-Based Compensation History for the SBC data that tells this story.

How Net Income Scales With Revenue

The most important feature of Palantir’s net income trajectory is the accelerating increment per dollar of revenue. In 2021, Palantir lost $520 million on $1.542 billion in revenue. In 2025, it earned $1.626 billion on $4.476 billion in revenue. The net margin swung from -33.7% to +36.3%. This 70-percentage-point swing in net margin over four years reflects: (1) gross margin expansion from ~78% to ~82%; (2) operating expense leverage (opex growing at 20% vs. revenue at 56%); (3) SBC moderation; and (4) growing investment income from the cash pile.

The trajectory implies that if Palantir sustains 30–40% revenue growth, net income could reach $3–5 billion by 2027 — a plausible outcome that supports premium valuation multiples. See Palantir Earnings Per Share History for how this net income growth translates to a per-share basis given ongoing share dilution from SBC.

Net Income and Shareholder Returns

Unlike Apple — which returns the vast majority of net income through buybacks and dividends — Palantir has not initiated shareholder return programs as of 2025. Management has prioritized retaining cash for potential acquisitions, continued R&D investment, and balance sheet strength. The company’s balance sheet carries over $5 billion in cash and investments with essentially no long-term debt, providing significant strategic optionality.

Frequently Asked Questions

When did Palantir first become GAAP net income profitable?

Palantir reported its first quarter of positive GAAP net income in Q4 2022 ($31 million), boosted by investment income despite a GAAP operating loss. The first quarter of GAAP operational profitability (positive operating income) was Q1 2023.

What is Palantir’s net income for 2025?

Palantir reported $1.626 billion in GAAP net income for full-year 2025, up 251% from $463 million in 2024. Q4 2025 alone contributed $609 million.

How does SBC affect Palantir’s net income?

Stock-based compensation reduces GAAP net income by the same amount it is expensed. In 2021, SBC of $779 million was the primary reason for the $520 million net loss. As SBC has declined to approximately 15% of revenue ($683 million in 2025), its drag on net income has reduced significantly relative to a much larger revenue base.

Will Palantir pay a dividend?

As of 2025, Palantir has not announced a dividend program. The company retains earnings and maintains a large cash and investment portfolio with no significant long-term debt.