Palantir Technologies Inc. (PLTR) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call highlights a 70% revenue growth, strong U.S. business momentum, and record high TCV bookings. The company raised its full-year revenue guidance, indicating optimism. With a 137% growth in the U.S. commercial business and increased adjusted operating income and cash flow, the financial health appears robust. Despite some international challenges, the strong domestic performance and raised guidance suggest a positive market reaction.
Key Financial Performance
Overall Revenue Growth 70% year-over-year increase, driven by strong momentum in the U.S. business, which now accounts for 77% of total revenue.
U.S. Revenue Growth 93% year-over-year and 22% sequentially, attributed to accelerating demand for AI production use cases.
Rule of 40 Score 127%, up 46 points year-over-year and 13 points quarter-over-quarter, reflecting hyper growth and exceptional profitability.
Total Contract Value (TCV) Bookings $4.3 billion, up 138% year-over-year, marking the highest TCV quarter ever.
Trailing 12-Month Revenue from Top 20 Customers Increased 45% year-over-year to $94 million per customer, showcasing strong customer commitment.
U.S. Commercial Business Growth 137% year-over-year and 28% sequentially, demonstrating compounding acceleration.
U.S. Government Business Growth 66% year-over-year and 17% sequentially, driven by mission impact across the Department of Defense and civil agencies.
Adjusted Operating Income $798 million in Q4, representing a 57% margin, exceeding prior guidance by 500 basis points.
Full Year Adjusted Operating Income $2.3 billion, representing a 50% margin and an expansion of 1,100 basis points compared to 2024.
Adjusted Free Cash Flow $2.3 billion for the full year, representing a 51% margin and 82% growth year-over-year.
Customer Count Grew 34% year-over-year and 5% sequentially to 954 customers.
Net Dollar Retention 139%, an increase of 500 basis points from last quarter, driven by expansions at existing customers and new customer acquisitions.
Total Remaining Deal Value $11.2 billion, an increase of 105% year-over-year and 29% sequentially.
Adjusted Gross Margin 86% for Q4 and 84% for the full year, reflecting strong profitability.
GAAP Operating Income $575 million in Q4, representing a 41% margin.
GAAP Net Income $609 million in Q4, representing a 43% margin.
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Operating Highlights
AI FDE: Capable of powering complex SAP ERP migrations from ECC to S/4 in as little as 2 weeks, and generalizing capabilities for broader customer problems.
Hivemind: Applied to generate bespoke AIP demos for customers based on public information, showcasing its ability to address internal challenges.
Foundry: Used by 97% of employees at Thomas Cavanagh Construction daily, replacing third-party software and enabling rapid feature development.
Gotham: Introduced new capabilities like Kairos, SyncMatrices, and Workbench for battlefield planning and execution.
Warp Speed: Accelerated submarine production and sustainment, reducing planning time from 160 hours to 10 minutes at one shipbuilder.
U.S. Commercial Business: Grew 137% year-over-year and 28% sequentially, driven by AI production use cases.
U.S. Government Business: Grew 66% year-over-year and 17% sequentially, with a $448 million contract from the U.S. Navy for shipbuilding supply chain modernization.
International Commercial Business: Grew 8% year-over-year and 12% sequentially, with long-term renewals signed with international customers.
Revenue Growth: Achieved 70% year-over-year growth in Q4 2025, with U.S. revenue surpassing $1 billion for the first time.
Profitability: Generated $798 million in adjusted operating income in Q4 2025, representing a 57% margin.
Customer Expansion: Customer count grew 34% year-over-year to 954 customers, with top 20 customers averaging $94 million in trailing 12-month revenue.
Focus on AI-native Enterprises: Transitioning customers from AI adopters to AI-native enterprises, emphasizing transformational impact.
Investments in AIP: Continued investment in AIP and elite technical hiring to drive innovation and customer value.
Organic Growth: Achieved fully organic growth without acquisitions, emphasizing direct customer relationships and proprietary technology.
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Risk or Challenges
Market Conditions: The transcript does not explicitly mention risks related to market conditions.
Competitive Pressures: No explicit risks or challenges related to competitive pressures are mentioned in the transcript.
Regulatory Hurdles: The transcript does not discuss any regulatory hurdles or challenges.
Supply Chain Disruptions: No explicit mention of supply chain disruptions as a risk or challenge.
Economic Uncertainties: The transcript does not highlight economic uncertainties as a risk.
Strategic Execution Risks: The transcript does not explicitly mention risks or challenges related to strategic execution.
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Guidance & Outlook
Revenue Growth: Guiding to a full year 2026 revenue of $7.190 billion at the midpoint, representing 61% growth year-over-year.
U.S. Commercial Revenue: Expected to exceed $3.144 billion in 2026, representing a growth rate of at least 115%.
Adjusted Income from Operations: Guiding to between $4.126 billion and $4.142 billion for full year 2026.
Adjusted Free Cash Flow: Expected to be between $3.925 billion and $4.125 billion for full year 2026.
Q1 2026 Revenue: Expected to be between $1.532 billion and $1.536 billion.
Q1 2026 Adjusted Income from Operations: Expected to be between $870 million and $874 million.
Strategic Focus: Continued investment in AIP (Artificial Intelligence Platform) and elite technical hiring to sustain growth and innovation.
Government Business Expansion: Maven program to be rolled out to all combatant commands and additional networks over the rest of the government fiscal year.
AI and Ontology Development: Plans to further develop AI capabilities, including Hivemind and AI FDE, to enhance enterprise autonomy and operational efficiency.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:How are you thinking about your international business? Do you anticipate reacceleration in the near future, for instance, due to European rearmament?
A:Alexander Karp explained that Palantir faces challenges outside of American allies due to the complexity of implementing advanced products in other countries. He highlighted that European countries often prefer domestic products, which complicates adoption. He noted that demand in the U.S. is very high, and Palantir focuses on delivering 'magical' solutions. He also mentioned that countries like France recognize the problem but struggle to solve it due to reliance on American products like Palantir.
Q:On the commercial side, have you seen a change in the hesitancy of customers or software partners to implement AI? On the defense side, is there an opportunity to expand applications like ShipOS to other areas such as ammo or missile systems?
A:Ryan Taylor stated that Palantir's commercial strategy focuses on delivering immediate value to customers, leading to larger deals and faster expansion. Alexander Karp noted that in the U.S., customers are increasingly aware of Palantir's capabilities and are eager to accelerate adoption. Shyam Sankar discussed the defense side, highlighting the potential to expand ShipOS to other weapon systems and sustainment areas, emphasizing the importance of integrated solutions from production to deployment.
Q:Does it feel like you're getting more and more of the budgets on the commercial and government defense side, where you go in to do X and end up doing Y?
A:Alexander Karp confirmed that Palantir is seeing significant revenue growth due to customers entrusting them with critical problems. He emphasized that Palantir's solutions create substantial value, leading to increased budgets. He also noted that Palantir's expertise and AI capabilities have positioned them as a preferred partner, particularly in defense and commercial sectors.
Q:Review of Unclear Management Responses
A:Management avoided providing specific details on how they plan to address the challenges of international expansion, particularly in Europe and Canada. Their responses included vague language about the complexity of the issue and the high demand in the U.S., without offering concrete strategies or timelines for reacceleration in these regions.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
ACV end
AI FDE
AI enterprise
Department
Foundry
OSDK
Rule score
Speed
TCV booking
Warp
booking TCV
booking dollar
builder platform
capability
code
command
commoditization cognition
contract TCV
conviction
customer base
deal end
demo
domain
engagement
enterprise software
expertise
momentum
reality
set
shipbuilder
shipyard
submarine
suiters
supplier
system design
term renewal
user use
weapon system
PLTR Transcript
Palantir Technologies Inc. (PLTR) Q1 2026 Earnings Call Transcript
Unknown5-4
The earnings call reveals a 20% YoY revenue increase and improved operating margin, which are positive indicators. However, the absence of strategic initiatives and operational updates, coupled with cautionary forward-looking statements, tempers enthusiasm. The Q&A section lacks additional insights, leaving uncertainties unaddressed. Despite strong financial metrics, the lack of guidance and strategic clarity results in a neutral sentiment, suggesting limited stock price movement.
Palantir Technologies Inc. (PLTR) Q4 2025 Earnings Call Transcript
Positive2-2
The earnings call highlights a 70% revenue growth, strong U.S. business momentum, and record high TCV bookings. The company raised its full-year revenue guidance, indicating optimism. With a 137% growth in the U.S. commercial business and increased adjusted operating income and cash flow, the financial health appears robust. Despite some international challenges, the strong domestic performance and raised guidance suggest a positive market reaction.
Palantir Technologies Inc. (PLTR) Q3 2025 Earnings Call Transcript
Positive11-4
Palantir's earnings call reveals robust financial performance with a 63% YoY revenue growth and a record operating margin. The company raised its revenue and free cash flow guidance, indicating strong confidence in future performance. The share repurchase program and impressive contract value growth further boost sentiment. Despite some vague responses in the Q&A, the overall positive financial metrics and optimistic guidance suggest a strong positive stock reaction.
Palantir Technologies Inc. (PLTR) Q2 2025 Earnings Call Transcript
Positive8-4
The earnings call indicates robust financial growth across all sectors, highlighted by record revenues, contract values, and customer expansion. The positive Q&A responses reinforce confidence in Palantir's strategic direction and market position. Raised guidance and strong cash flow further support the optimistic outlook. The absence of negative sentiment or unclear responses, coupled with a significant partnership announcement, positions the stock for a strong positive reaction.
PLTR Slides
Palantir Q1 2026 slides: US revenue tops 100% growth, Rule of 40 hits 145%2026-05-04
Palantir Q4 2025 slides: US commercial revenue surges 137%, Rule of 40 hits 127%2026-02-02
Palantir Q3 2025 slides: US commercial revenue soars 121%, Rule of 40 hits 114%2025-11-03
Palantir Q2 2025 slides: revenue tops $1B, Rule of 40 score hits 94%2025-08-04
PLTR Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
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Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
