Palantir Technologies(US:PLTR)2026-02-02 23:00Financial Data and Key Metrics Changes - In Q4 2025, overall revenue surged 70% year-over-year, marking the highest growth rate as a public company, with U.S. business revenue growing 93% year-over-year [3][17] - The Rule of 40 score reached 127, up 46 points year-over-year and 13 points quarter-over-quarter, indicating strong growth and profitability [3][28] - Full year 2025 revenue grew 56% year-over-year to $4.475 billion, with a guidance for 2026 revenue of $7.190 billion, representing 61% growth year-over-year [17][30] Business Line Data and Key Metrics Changes - U.S. commercial business grew 137% year-over-year and 28% sequentially, while U.S. government business grew 66% year-over-year and 17% sequentially [18][24] - Fourth quarter commercial revenue grew 82% year-over-year to $677 million, with full year commercial revenue growing 60% year-over-year to $2.073 billion [20][21] - Fourth quarter government revenue grew 60% year-over-year to $730 million, with full year government revenue growing 53% year-over-year to $2.402 billion [23][24] Market Data and Key Metrics Changes - The U.S. market accounted for 77% of total revenue, with significant growth driven by AI adoption [3][4] - International commercial revenue grew 8% year-over-year, while international government revenue grew 43% year-over-year [22][24] - Customer count increased by 34% year-over-year to 954 customers, with trailing 12-month revenue from top 20 customers increasing 45% year-over-year to $94 million per customer [19][24] Company Strategy and Development Direction - The company focuses on leveraging AI to transform customer operations, moving them from AI adopters to AI-native enterprises [4][5] - Palantir aims to maintain its unique position in the market by delivering real-world value through its software, emphasizing the importance of ontology and AIFD [4][10] - The company is committed to investing in product development and elite technical talent to sustain growth and profitability [26][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 with strong momentum, highlighting the convergence of two decades of development into current success [9][30] - The company acknowledges challenges in international markets but emphasizes the strong demand and unique position in the U.S. [40][41] - Management noted that the AI revolution is creating significant opportunities for growth, particularly in defense and commercial sectors [49][50] Other Important Information - The company achieved a milestone with U.S. business revenue surpassing $1 billion for the first time [17] - Adjusted operating income for Q4 was $798 million, representing a 57% margin, with full year adjusted operating income of $2.3 billion [18][26] - The company ended the quarter with $11.2 billion in total remaining deal value, reflecting a 105% year-over-year increase [25] Q&A Session Summary Question: How is the company thinking about its international business and potential reacceleration? - Management indicated that while there is significant demand in the U.S., challenges exist in international markets due to differing purchasing structures and readiness to adopt advanced products [39][40] Question: Has there been a change in customer hesitancy towards AI implementation? - Management noted a shift in customer conversations, with more clients now recognizing the effectiveness of their solutions and seeking to accelerate implementation [43][45] Question: Is there an opportunity for new operational systems in defense? - Management confirmed ongoing discussions about expanding operational systems beyond current applications, indicating a strong interest in integrating solutions across various military needs [49][50]