This article first appeared on GuruFocus.
Oct 17 – Last month was quite good for Palantir (NASDAQ:PLTR) as it won a strategic U.K. partnership tied to up to 1.5 billion of planned investment and a London defense headquarters that the company says could seed future NATO and European MoD work.
The move comes amid a flurry of recent contract wins the company says bolster its international push. Since summer, Palantir disclosed seven deals including enterprise deployments at Lumen (NYSE:LUMN) and expanded engagements with Lear Corporation (NYSE:LEA), a defense collaboration with Hadean in the U.K., and a multi-site deployment with Boeing (NYSE:BA).
The company also faces local scrutiny over a smaller pilot with Coventry City Council to integrate AI into social services, and on Oct. 6 was selected by OneMedNet as infrastructure for a near-real-time, regulatory-grade clinical data network.
On guidance, management has lifted fiscal 2025 targets and issued Q3 revenue guidance of $1.083 billion to $1.087 billion, about 8% sequential growth at the midpoint, with a FY25 midpoint of $4.146 billion, implying 45% year-on-year growth.
Investors will focus on Q3 results scheduled for Monday, Nov. 3, 2025, after the U.S. market close, where management expects adjusted income from operations near $493 million to $497 million.
Market watchers say the U.K. partnership is the highest-leverage development for Palantir’s international government business, which remains small relative to its U.S. government segment; international government revenue was $127 million in Q2 versus $426 million from the U.S. segment.
But challenges remain: the international commercial segment has lagged, showing weak or negative year-over-year trends, and regulatory headwinds from the EU AI Act could complicate scaling in Europe. Valuation also remains rich, a restraint for more risk-averse investors.
Technically, trading patterns show an ascending triangle converging ahead of the earnings release, a setup some traders say could amplify volatility when results arrive.
Management flagged a hiring ramp in Q3 tied to the London HQ, and executives flagged a Rule of 40 near 91%, metrics investors will scrutinize.