Palantir Technologies (PLTR) Q3 2026 Earnings Call Transcript

With Palantir Sovereign AI, McCarthy Building Companies will save 30,000 hours annually by using post-trained Nemotron to help turn complex project requirements into contract language that allocates risk and clearly defines subcontractor obligations.

Tampa General is deploying Sovereign AI to keep sensitive data and model processing local while enforcing its own risk and privacy standards for LLM traffic and supporting the granular controls Tampa General wants to define for itself. Using fine-tuned and post-trained Nemotron to achieve this outcome. Together, we also improved model performance by 7% and reduced latency by 22x.

US Government Business

Turning to our US government business, revenue grew 96% year-over-year and 18% sequentially. Demonstrating continued extraordinary impact across civil and defense. With Maven as our foundational work. In Q3, the Army awarded Palantir a prime agreement to produce 8 TITAN systems.

And last quarter, FAA highlighted the impact of our work together, stating, quote, that shift from scattered data to an embedded ontology is what changes the game. This is a modernization in operational form, changing how safety work gets done. And noted that the work they can do now would require hundreds of analysts without Palantir.

As I reflect on our results, I see the furious pace continuing unabated. I’m invigorated unlike ever before. By the ambition I’m hearing from our customers and their demand for sovereign AI, a revolution we should remember is barely one quarter old.

As extraordinary as these results are, they are only the opening chapter of sovereign AI. I’ll now turn it over to Shyam.

CTO Remarks: AIP as the Diffusion Layer

Shyam Sankar, Chief Technology Officer – Palantir Technologies: Thanks, Ryan.

Palantir is obsessed with turning tokens into economic value. It’s clear that the vast majority of economically valuable problems that LLMs can solve can be solved with intelligence at or below the frontier.

So what’s preventing this from happening? On one end, you have the model makers who can’t conceive of solving any problem except through model improvement. So they aren’t even trying. And on the other end, you have the hard work of diffusion. Which sounds passive, but is anything but.

All the value comes from the elegant integration of AI software and humans. And this requires not a harness for the model, but something closer to a harness for the enterprise. Which is exactly what AIP is.

Most profoundly, the conceit that the labs have wrong is the belief that the atomic unit of the enterprise is the individual knowledge worker. It is not. The fundamental unit of the enterprise is the workflow.

You can make any set of workers more productive and generate no actual ROI. For some things like coding, the knowledge worker is the workflow, so there’s perfect product-market fit. But for the vast majority of the enterprise, it is not.

Given this, it is incredibly valuable that AIP implements enterprise workflows and is able to bring AI to it in a way that generates objective quantifiable value.

For example, page 209 of Anthropic’s S-1 talks about AIG’s automation of insurance underwriting processes for complex commercial lines of business. That entire workflow and the elegant application of AI software and humans runs in AIP and was implemented by Palantir and AIG. We are the diffusion layer, not just of choice, but of necessity.

Ambition Over Cost Reduction

There’s a clear pattern emerging amongst our customers who are most successful at getting value from AI. They have enormous ambition. Their goal is not something lame like opex reduction, it’s market domination.

And the opposite is true. Customers that struggle the most are narrowly focused on reducing costs. AI is a new type of intelligence. Simply trying to shoehorn it to replacing the human misses the moment completely.

The error of conflating human and machine intelligence locks you into a poorly chosen goal. One that limits your ambition and still remains out of reach. Instead, we’re attacking all the work the enterprise knows it should be doing, but historically lacked the economic resources or capabilities to take on.

An agent swarm watching each patient in the ICU ward to help clinicians avoid potential signs of sepsis earlier and improve patient outcomes. An agent swarm per wellhead in the Permian Basin to maximize production. An agent swarm for every customer of our customer to drive growth.

This is not about doing the same thing cheaper. It’s about defining the productive work that goes beyond yesterday’s frontier. Capturing and compounding the new economic value it creates.

Sovereign AI and the Closed-Loop Model Factory

And doing so with sovereign AI. The examples are everywhere now. It’s clear that post-training on your specific operational data in ontology enables better-than-frontier performance on weights you control. Protecting your alpha.

Yes, it’s cheaper, but the dominant variable is that more use cases can actually get to the threshold of viability for machine intelligence to generate economic value when elegantly integrated into your enterprise.

And our product investments in AIP to create a closed-loop model factory are making this easy and fast. The specific post-trained model is a commodity item.

The compounding value is in the post-training pipeline that is constantly fed from your operational exhaust captured in the ontology that drives automated post-training runs, model checkpoints, evaluations and deployment across yesterday’s, today’s, and tomorrow’s open weight ecosystem.

Our new feature of auto research and continued investment in AIP Evolve push us closer and closer to an automated loop to build, deploy, and evaluate intelligence continuously against ROI.

In AIP and sovereign AI, the Pareto optimal frontier is no longer an unachievable academic aspiration. It is a simple function call. And one we can invoke automatically on your behalf.

At a recent PACOM exercise, we deployed a 30 billion parameter post-trained model into space, weight, power, cooling constrained compute, ready for the disconnected fight. with superior task-specific performance than GPT-5.6 SOL, a 3 trillion parameter model.

L3Harris realized 95% cost reduction with Sovereign AI. McCarthy will save 30,000 hours a year on subcontractor drafting, achieving better than frontier performance for RFI classification and subcontractor drafting on a post-trained Nemotron 4 billion parameter model. Where again, the real value is the substantially greater number of demand events they can process now.

Maven and Defense Updates

Maven continues to deliver for the joint force, exceeding 100,000 users. Maven is now available to all of the services beyond just the combatant commands and many combat support agencies.

We just concluded a Maven hackathon. 46 teams across the joint force participated. Many amazing projects were built by our 25,000-strong builder community.

The winning 2 teams were both Army teams, one building an edge planning and simulation capability for force protection, and a second place an incredible platform to analyze drone incursions to drive force protection insights.

And we continue to feel demand for Maven down to the tactical edge. Disconnected environments ashore and afloat. We have seen incredible success with DORA, disconnected ontology resilient architecture.

Including in the Army’s jailbreak effort, DORA is an embedded compute device that brings Maven’s capabilities to disconnected operations. Using AFD, service members can build read-write integrations with Legacy sensors and effectors and bring them online in hours entirely unassisted.

With that, I’ll turn it over to Dave.

Q3 2026 Financial Results

Dave Glazer, Chief Financial Officer – Palantir Technologies: Thanks, Shyam.

We had an outstanding 3rd quarter. We delivered our highest ever reported year-over-year revenue growth rate of 96% and our highest ever reported sequential revenue growth rate of 20%. Quarterly revenue crossed the $2 billion mark for the first time. And we surpassed additional billion-dollar milestones in commercial revenue, government revenue, and GAAP operating income.

Revenue in our US business accelerated yet again. Growing 119% year-over-year and 23% sequentially. Our US commercial business grew 148% year-over-year and accelerated to 29% growth sequentially. Our US government business grew 96% year-over-year and 18% sequentially.

Demand for our sovereign AI offering is accelerating our US commercial momentum. Helping to make this our first ever quarter that US commercial revenue eclipsed US government revenue, a critical milestone in the history of our company.

On top of this, we are raising our full-year US commercial revenue guidance to in excess of $3.559 billion, representing a growth rate of at least 143%.

We are also raising our full-year 2026 revenue guidance midpoint to $8.532 billion, representing 91% growth year-over-year, a 9-point increase over our full-year 2026 revenue guidance from last quarter.

Turning to our global top-line results. 3rd quarter revenue grew 96% year-over-year and 20% sequentially to $2.313 billion. 3rd quarter US revenue grew 119% year-over-year and 23% sequentially to $1.937 billion.

Revenue from our largest customers continues to expand. 3rd quarter trailing 12-month revenue from our top 20 customers increased 76% year-over-year to $146 million per customer.

Commercial Segment Performance

Now moving to our commercial segment. 3rd quarter commercial revenue grew 113% year-over-year and 24% sequentially to $1.168 billion, crossing the billion-dollar mark for the first time. We closed $1.652 billion in commercial TCV bookings in the 3rd quarter, representing 17% growth year over year.

Our AI platform continues to dominate the US markets as the only real choice for operationalizing LLMs while still giving customers full control over the data, logic, actions, and security of their enterprise.

3rd quarter US commercial revenue grew 148% year over year and accelerated sequentially to 29% quarter-over-quarter, totaling $984 million. US commercial revenue was $397 million in the 3rd quarter of 2025, meaning it increased by $587 million in just one year.

We closed $1.463 billion of US commercial TCV bookings, representing growth of 11% year over year.

Over the past 12 months, we closed $6.114 billion of US commercial TCV bookings, a 62% increase from the prior 12 months, highlighting the accelerating demand for AI that creates real operational value while also moving power away from the labs and back into your enterprise.

Total remaining deal value in our US commercial business grew 79% year over year and 4% sequentially.

We believe sovereign AI is the latest and largest tech revolution of our generation. We signed multiple 8-figure deals in the quarter that were shorter in duration than usual as customers rapidly adopted initial sovereign AI capabilities in their enterprise.

It’s important to remember that the sovereign AI revolution is only one quarter old. As we continue to deliver value with sovereign AI over time, we expect both the duration and size of these contracts to increase.

Our US commercial customer count grew to 686 customers, reflecting growth of 29% year-over-year and 5% sequentially.

3rd quarter international commercial revenue grew 21% year-over-year and 1% sequentially to $184 million.

Revenue from strategic commercial contracts was approximately $400,000 for the quarter, representing less than 0.02% of overall revenue. We continue to expect revenue from these contracts to be less than $500,000 in the 4th quarter, and we anticipate no further revenue from these contracts beyond the 4th quarter of this year.

Government Segment Performance

Shifting to our government segment, 3rd quarter government revenue grew 81% year-over-year and 16% sequentially to $1.146 billion, crossing the billion-dollar mark for the first time.

3rd quarter U.S. government revenue grew 96% year-over-year and 18% sequentially to $953 million. This growth was driven by continued execution in existing programs and new awards reflecting the growing demand for our AI platform in government.

3rd quarter international government revenue grew 31% year-over-year and 6% sequentially to $192 million.

Bookings, Retention and Remaining Deal Value

We closed $2.918 billion of TCV bookings, up 6% year-over-year. Net dollar retention was 165%, an increase of 800 basis points from last quarter.

We ended the 3rd quarter with $13.4 billion in total remaining deal value, an increase of 55% year-over-year and 2% sequentially, and $4.9 billion in remaining performance obligations, an increase of 88% year-over-year and flat sequentially.

As a reminder, RPO is primarily comprised of our commercial business, as it does not take into account contracts with an initial term of less than 12 months and contractual obligations that fall beyond termination for convenience clauses, both of which are common in most of our government business.

Margins, Expenses and Profitability

Turning to margin and expense. Adjusted gross margin, which excludes stock-based compensation expense, was 85% for the quarter.

Adjusted income from operations, which excludes stock-based compensation expense and related employer payroll taxes, was $1.427 billion in the 3rd quarter, representing adjusted operating margin of 62%.

Q3 adjusted expense was $887 million, up 20% sequentially and 53% year-over-year, primarily driven by the continued investment in our AI platform and technical hiring as we welcomed our latest class of new grad hires.

We remain committed to investing in the most elite technical talent as well as R&D for our product pipeline and sovereign AI efforts, all while delivering on our goals of sustained GAAP profitability.

3rd quarter GAAP operating income was $1.085 billion, representing a 47% margin and surpassing the billion-dollar mark for the first time. 3rd quarter GAAP net income was $1.128 billion, representing a 49% margin. Net income has increased nearly 8-fold over the last 24 months from $144 million in the 3rd quarter of 2024.

3rd quarter stock-based compensation expense was $319 million and equity-related employer payroll tax expense was $23 million.

3rd quarter GAAP earnings per share was $0.44. 3rd quarter adjusted earnings per share was $0.44.

Additionally, our combined revenue growth and adjusted operating margin accelerated to 158% and in the 3rd quarter, a 3-point increase to our Rule of 40 score from the prior quarter and our 13th consecutive quarter of an expanding Rule of 40 score.

Cash Flow

Turning to our cash flow. In the 3rd quarter, we generated $1.205 billion in cash from operations and $1.216 billion in adjusted free cash flow, representing margins of 52% and 53% respectively.

We ended the quarter with $10.4 billion in cash, cash equivalents, and US Treasury securities.

Q4 and Full-Year 2026 Outlook

Now turning to our outlook. For Q4 2026, we expect revenue of between $2.649 and $2.653 billion and adjusted income from operations of between $1.640 and $1.650 billion. and $1.644 billion.

For full year 2026, we are raising our revenue guidance to between $8.530 and $8.534 billion. We are raising our US commercial revenue guidance to in excess of $3.559 billion, representing a growth rate of at least 143%.

We are raising our adjusted income from operations guidance to between $5.245 and $5.249 billion. We are raising our adjusted free cash flow guidance to between $4.8 and $5 billion. And we continue to expect GAAP operating income and net income in each quarter of this year.

With that, I’ll turn it over to Alex for a few remarks and then Ana will kick off the Q&A.

CEO Remarks: Alex Karp

Alex Karp, Chief Executive Officer – Palantir Technologies: Welcome to our earnings call. And I think for many, many years our earnings calls were really about our earnings. Now it is the focal point of tech society and general trends.

And I think many, if not most people who are watching this, and it is by far the most watched earnings call in the world. It’s the one where people come to figure out what’s going on on the ground floor.

And given that AI and sovereign AI is changing the universe, in our case for tremendous good and is showing up in our numbers, people really want to have a sense of, well, what is actually happening in the world politically, sociologically, anthropologically, and of course financially.

Given that demand and interest in Palantir and the reality that this moment has become a real focal point of understanding, and quite frankly, many investors watching this are watching it to figure out what’s going on with their investments and not even primarily Palantir.

And so there’s this larger question of what does it mean to have a business that was built around what we believed and believe now is the most important mission in the world, supporting our warfighters, bringing them home, where even as much, even a year ago, 2 years ago, that people even involved inside Palantir viewed the core value of our business economically as Glazer would look at it.

And quite frankly, in a very helpful way, he’s the force of greed, Glazer’s view of our business was, could you talk a little more about commercial over the past year, the past couple of years? And in this quarter, our commercial business eclipsed our government business.

And in fact, the market value of that probably justifies our current valuation, given we’re growing at 90— our aggregate business growing at 96%. Juggernaut of U.S. commercial. I mean, these numbers are so far outside the bounds of what you could—I mean, outside the bounds of what even the most optimistic people could think a business like ours could do while maintaining a way of going to market that is completely sui generis.

We have products that are unique. We have ways of going to the market that are unique. We were the leader of a revolution that was in front of us, but none of us really were able to put our name on the sovereign revolution.

Meaning people need to understand how AI can create value, how you can create value out of tokens, how you can keep the value of your own alpha. How is it not transferred to anyone else and how can you expand it? That revolution, of course, is happening in America.

And then these out-of-bounds results of which we’re a metaphor, really show you the future is becoming the present. The present is now. You see it in Europe, which I’m spent half my life, and at this point we should kind of avoid talking about it because of what’s going on, and it doesn’t help to just stamp on them.

But you see it across America. You see the reaction to AI. You see the polarization politically. It’s because all the value in the market is actually moving to the vehicles, in this case Palantir, and really very few others—Anthropic, OpenAI, us, others—that where you can actually make a claim that there is some value creation again.

The US Commercial Juggernaut

It’s so extreme that a business that was viewed as a nice-to-have part of our business as late as 3 years ago is now the dominant part of our business. That business grew 29% quarter on quarter. It’s almost at 150% growth. And it’s dragging our US growth number over 100%. These are just bombastic.

And we did this while attacking the market the way we attack it. Very few salespeople, very impossible way to understand how we are capturing this juggernaut unless you view it as a completely new and different moment, and so when people are watching this, what? What is happening in the market? What is happening in our society?

It really is the case that the playbook, the products, the way of going to market do not work in most cases. But the things that do just spring alive. And our somewhat crazy aspiration to take the whole market doesn’t look that crazy right now.

And we believe at this company and many of the people watching it, we do not only have a financial reason for taking the whole market, which Glazer is salivating at. We on the Mission side, we believe we have a mission reason for taking the market, and that mission reason is.

We support your alpha. We support your sovereignty. We’ve done this for over 20 years. We support the warfighter. We are delighted that we can support the warfighter even more because we’re making so much money.

But we believe we have a moral imperative to be the dominant player in our industry, broadly defined, including all AI applications and the use of Model open and closed, especially training open weight models. And that moral imperative drives every part of our business.

The interesting thing about the internal dynamic of our business, it’s not only that the sum of the parts in our business is stronger, that’s obvious, 96% growth. Look at our Rule of 40. It’s $158 billion. It’s almost jaw-dropping.

But we, the parts of our business, the individual parts, the parts that the people at this company are running, those parts are stronger than they were before every part, and that’s what you’re seeing in these numbers. And arguably, for most people watching that, that’s what you’re seeing in broader society.

And this move to the from the future to the present. Is the reason why many of the classical approaches to business there was an idea they were going to fail in five years that doesn’t work. You have to execute now and in the present, and this company, Palantir, and everyone involved and all the people watching this who are on our side, of which there are many, many people, are part of that movement.

And that’s why we’re so really happy and honestly quite optimistic about the future, especially in the US.

Question-and-Answer Session

Ana Soro, Head of Investor Relations – Palantir Technologies: Thanks, Alex. Our first question is from Dan with Yorkville Ives. Dan, please turn on your camera, and then you’ll receive a prompt to unmute your line.

Dan Ives, Analyst – Yorkville Ives: Yeah, thanks. And obviously just another phenomenal quarter. So my question is with the Sovereign AI boot camps, I mean, I’ve been to a few. It seems like they’re really becoming huge for converting customers. Can you just walk through?

Alex, you talk to so many of these customers. Do they come into a boot camp? Just they’re not—they’re trying to understand their AI path, and then they leave, and they’re. Actually, a customer. Can you just walk through just from your perspective?

Alex Karp, Chief Executive Officer – Palantir Technologies: Well, I mean, what’s really shifted on the front line is there used to be this long walk up to people talking to us, and then you do a pilot, and then you try to get a long pilot, and then you kind of lock that in because it the same way you lock in hire all these salespeople so that the market believes you’re going to have sales kind of thing.

Now it’s much more people are it’s super heterogeneous. So some people everybody basically comes in on the spectrum of what I have doesn’t work now, and I’ve heard what you have does work. That’s usually where it starts. They also strongly believe and are quite tired of what they believe the reality is: my IP is in danger and I’m getting no value.

It’s like, and this is when we started talking about sovereignty. This was kind of an un—this was a something that was being expressed. They felt, but they didn’t know how to articulate. Now it’s something they articulate, and they’ve gone from anger to action, it’s like they’ve gone from thinking hey I’m not in a great marriage to I’m at the divorce and they come and then what’s very special now is they’re surrounded by people who’ve had the same journey.

And the timeline from interaction to them buying pilots or going into production is completely shifted. And so what Ryan and I are seeing on the front line in commercial is this much quicker interaction, much quicker to deployment, shorter duration of the contract, but then an ability to expand that contract dramatically.

Because as soon as you go in there and you show them that you can, for example, train open weight models in our ontology, those models are valuable, and you have beyond frontier capacity without losing the alpha, you just are hooked.

What we have to do internally is figure out how to re-resource our company to focus exclusively on those people because we don’t have even the bandwidth to do that. So, but that’s because every single time we go into the conference. In the past, you would be— we go into conference and people are warm leads turn into hot leads. This is like first date into bed. Kind of thing.

Maybe that’s not the right metaphor for this, but it’s a very different jam. It’s like we’ve gone— put it this way, we’ve gone from being the most attractive person in the physics department to being the captain of the football team kind of thing. I mean, not that I did that, but this is a completely different jam of what’s going on.

And then it’s also different on our end because we know we can deliver on use cases no one else can deliver on. So even today, we’re going over use case after use case with a super major, one of the most important companies, and I’m going to go see them.

And basically, it’s like I’m. Instead of saying, hey, get— which is, let’s just get started. You have this crucial problem for your business. We know we can deliver on this in weeks. This will change the trajectory of your business.

And it’s in a weird way, much closer to what we were doing in the beginning in the U.S. government, where we were, “Hey, we’re just going to get started.” We knew we could prove it with PG, and then we, but it’s at a much more massive scale. So instead of being 250K, it’s $25 million to start.

And honestly, the general vibe is if this actually works, it’s worth infinite value and it will work. And quite frankly, I do not see how other offerings are going to work. Because this is both product and artistry.

It’s not just— that’s why these numbers are so bombastic. It’s not some static— when Shyam’s on the front line doing implementations or Ryan is structuring these. I mean, Ryan was so busy the last couple days of last quarter, he couldn’t get out of his car. We were about— I was about to send over a bottle so he could take care of nature.

It’s like that on the front. And I’m not even— I’m not exaggerating. Ryan was on his way to work and he had to pull over. He drives a fancy car. I mean, look at that. But, no, but he literally had to pull over. And that’s just what’s going on.

And it— but again, I know the primary focus of your interest here is financial, but there’s the flip side. The other stuff is not working. That’s part of— it’s not just that our thing is unique.

There’s a very strong sense in the market that these other approaches, fake deploy codes, token, raw usage, lightweight companies reselling tokens. Software companies that are reselling tokens and it counts as revenue. People are just tired of it.

And I’ll tell you, last not least, the taste of the market is shifting. People really do grow to like what works. I mean, look at the success in the Department of War. It’s like, that was it. We shifted the taste. That’s what’s happening in US Comm. That’s what’s explaining the numbers.

And that’s what, if you, people watching this, you should come to one of our AIP Sovereign. It’s a little bit like a rock concert.

Dan Ives, Analyst – Yorkville Ives: Thank you.

Ana Soro, Head of Investor Relations – Palantir Technologies: Our next question is from Gil with D.A. Davidson. Gil, please turn on your camera, and then you’ll receive a prompt to unmute your line.

Gil Luria, Analyst – D.A. Davidson: Thank you. Good afternoon. I want to build on that conversation you had with Dan. You talked to him about one type of CEO, the one that comes to you with an urgency around sovereignty.

But as reading the Anthropic S-1 will tell us, about half of their customers work directly with Anthropic. So when you have a CEO, which means there’s a lot of CEOs that haven’t gotten the message. To your point, you’re in the first inning of this conversation.

When you get a CEO that’s still unconvinced, what kind of analogies and metaphors can you use to help them understand the importance of this diffusion layer orchestration harnesses coming from you and not directly from the lab. What kind of examples do you have to provide them to understand the risk?

Alex Karp, Chief Executive Officer – Palantir Technologies: There’s two parts to your question, which is the person who’s not convinced. Or not yet convinced, and then what do we do?

The weird thing here though is we really cannot satiate demand. So this is a market that is growing so rapidly. We don’t need the people who aren’t convinced. We really don’t.

And by the way, and again, I say this every time, Dario is someone I get along very well with. I think he’s one of the most important business people of my generation, if not multiple generations. They are also selling our product because people interact with them. And again, some people want that approach.

But a lot of people are super concerned about their alpha being transferred to them. And the results, even the results they talk about, are often already in our application layer. And we work very effectively with Anthropic and the Department of War and at AIG and all over the place.

But again, the primary— what they are doing is increasing the size of the market. What we’re doing is servicing the market that’s gotten real. And we are actually in a symbiotic relationship with them commercially because they’re growing the market. It’s probably much, much bigger than it will be— it is today. And we’re taking advantage of the market where it really— where you really need delivery, where delivery also includes.

Now, if there is somebody— we don’t— we really do convincing in the government space. We’ve been on the front lines. Certain agencies didn’t want to adopt, and we knew that warfighters would die if they didn’t adopt. So we went to convince them.

In commercial, our real approach is, hey, enjoy the one you’re with till you just— you find out it’s not the one you want. There are very, very, very few times where we’re trying to go and compete and take their customer away. It really is not happening. And conversely, once you go Palantir, you don’t go back.

And that’s just— that’s how it is. And you see it in our numbers, which is— so this is a very different thing. I don’t know at what point we become competitive with each other, but at this point in the US, the market for us is insatiable. It’s insatiable and growing and growing and growing.

There’s 2 ways to look at our numbers. One is to say we are just sublime at what we do. Another way is to say we’re very unique and the market is exploding around us. I’m much more in the latter camp. I don’t— we are a creative colony. We’re not perfect. But the market is exploding around us. And they are helping it explode.

And the only area where we do anything that looks competitive is we are spending a lot of time educating clients, partners that may never— that are non-partners. Around the risks of using closed models without an application layer. That’s the one thing we do do actively. But we’re not really saying, hey, you’re going to, the value creation people know we own.

This is certainly an industry. I think less on Wall Street, actually. Honestly, I think on Wall Street— I don’t mean you, but I think really what happened on Wall Street is everybody invested in these firms early. Bless you guys. It’s hard to see the reality when you’re getting rich on something that’s not actually working the way you think it is.

And the reality is, though, in industry, people realize when it gets real, you need us. And that market is much larger than we can service.

Gil Luria, Analyst – D.A. Davidson: Thank you.

Ana Soro, Head of Investor Relations – Palantir Technologies: Our last question is from Brad with Deutsche Bank. Brad, please turn on your camera, and then you’ll receive a prompt to unmute your line.

Brad Zelnick, Analyst – Deutsche Bank: Great. Thanks so much for including me. Congrats on another rocket ship quarter.

Alex, in your shareholder letter, you said that you see Palantir as the pioneers of a genuine and viable anti-war movement. Can you expand on what that means and what it might mean for your government business?

Alex Karp, Chief Executive Officer – Palantir Technologies: Well, one of— and I’ll let Shyam talk about this.

I’ll go back to the beginning of our Palantir PG. We built products that would protect civil liberties and stop terrorism. For the very simple reason that you don’t want to do one or the other. If you don’t stop terrorism, you’re going to get a radical fringe on the right. If you stop terrorism without rights, none of us want that. Okay.

You could say it’s an anti-terror product, or you could say it’s a product for social cohesion. It’s this product for— our products are built to avoid war. Meaning the adversary knows that they will have such pain inflicted upon them that in fact it’s not worth going to war.

And also to create social cohesion because we’re going to bring back our troops healthier, safer, non-damaged, and that makes our society much more effective.

And I would say as a person, not as Palantir, I grew up as a lefty. I don’t actually like war. I want to avoid war. We don’t support wars. Sometimes they are necessary. When they are necessary, America and its allies need the very, very, very best tools. And we have competitors, adversaries, and enemies out there.

They need to know our stuff works. The way to stop a war is for them to know these things work. And also, part of the problem with that we’ve had in the AI discussion in this country is we do have a rival, an adversary on the battlefield. I happen to respect their culture quite a bit, China, but it is us or them.

And they have a dynamic, interesting, super high IQ scaled culture that is doing exceedingly well at AI. And we’ve got to make sure we’re the leaders and somehow we have to drag our European and other allies with us, which is going to be hard because they’re going to have to also learn how these things work.

And that probably means a real interaction with the leader of the sovereign movement. Not some fake bureaucratic thing made up by people who have no idea what they’re talking about and think you can regulate these things like a telecom industry when in fact this is galvanizing a new transformative technology that is transforming everything. every part of society and transferring our numbers and everything it touches.

Brad Zelnick, Analyst – Deutsche Bank: Thank you.

Closing Remarks

Ana Soro, Head of Investor Relations – Palantir Technologies: Alex, as always, we have a lot of individual investors. Somebody else has got to talk. Is there anything anyone would like to say before you end the call?

Alex Karp, Chief Executive Officer – Palantir Technologies: You guys can say a couple of words. Shyam, would you like to say—

Shyam Sankar, Chief Technology Officer – Palantir Technologies: Well, I mean, you spoke about deterrence really well. I guess I would just add that, of course, the objective is to deter conflict. Deterrence is not something you accomplish by hope. You actually have to build it brick by brick.

And so on one end, in the foxhole, that’s about having a capability that’s 10 times, 100 times better than your adversaries should they choose. And if they choose to fight, they’re going to lose, and therefore they should not choose to fight. And on the other end, it comes down to the factory floor. Deterring conflict, as we’ve seen with Russia and Ukraine, is really about your ability to produce the material.

We are in a period where we need to reinvent how we do production. We’ve gone through 30, 40 years of essentially deindustrialization in the nation beyond just our defense industrial base.

And so that’s something that we’re doing with War Machine and working with commercial and private and public sector companies in order to enable production using a modern American manufacturing system. Manufacturing stack.

These are two parts of the same coin here. And I think it comes down to, yes, freedom driven through the foxhole, but also prosperity, the growth of the American economy on the back of that.

Alex Karp, Chief Executive Officer – Palantir Technologies: You want to say something? Would you like to talk about your greed after that?

Ryan Taylor, Chief Revenue Officer and Chief Legal Officer – Palantir Technologies: I’ll just add, the Sovereign AI Revolution, we launched this last quarter and the felt version on the ground is, and what we’re seeing at Sovereign AI bootcamps when we actually show and don’t tell is the momentum and the urgency of customers that get it and see it adopting quickly, moving quickly, moving with urgency because they realize how much it matters.

And we’re feeling that on the ground and we’re at the very beginning of this, and we only see that continuing and expanding from here.

Shyam Sankar, Chief Technology Officer – Palantir Technologies: And because I can’t help myself, I’ll say one more thing going back to Gil’s question. I mentioned this earlier in my comments, but it really is the case that I think one of the conceits that the labs don’t have right and that perhaps the customers who don’t quite yet realize that the return is not there is that the atomic unit of the enterprise is not the knowledge worker.

You can make people more productive and generate no actual return on investment. If you’re measuring the inputs, it can feel really good to see that productivity of the person. You actually— the atomic unit is the workflow.

And having a platform like AIP where you’re already managing your supply chain or your S&OP or your key enterprise processes. The exhaust of those processes then enable you to go through the post-training loop to have a model that’s better than frontier at that.

We give you the tools to elegantly integrate your people, your AI and the software to actually drive objective quantifiable value against the workflow. This is the compounding loop that the customers who are coming to us in the sovereign boot camps really understand.

Just that our most recent DevCon down in Miami, we had a customer who on their stack in production as a Hack Week project built a production-ready model that’s better than frontier for their use case in the 48 hours single person in the 48 hours that was DevCon. So the proof is everywhere on this.

Dave Glazer, Chief Financial Officer – Palantir Technologies: And I guess 2 financial metrics to leave you with. I’d say 2 years ago on net income and to today, we’ve 8x our net income over the last 2 years, which I am incredibly proud of, as well as everything else that was.

And also, as we look at sort of this year, to basically guide to almost $5 billion in cash flow for the full year is, I think, something we all can be excited about.

Alex Karp, Chief Executive Officer – Palantir Technologies: And to close, I just, the people who invested in us early, many of them were investing their own money and would otherwise be called retail. And many now recently have reinvested in us.

The sovereign revolution is metaphor for your interaction with Palantir and the fact that we’ve been able to help you and you’ve been able to help us in your own wealth creation and in our journey and that you’ve defended us against what obviously now look like ridiculously stupid and malicious, incredibly hard to understand attacks is something that we will never forget.

And part of the delivery here, part of what motivates me, is helping to make sure we are fighting for you. And quite frankly, making sure that the people that made fun of you and made fun of us are suffering. And I’m very proud of that. And I’m very proud to have all of you along with us. And thank you for that support.

Ana Soro, Head of Investor Relations – Palantir Technologies: Thank you. That concludes today’s call.

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