Palantir Technologies (NASDAQ:PLTR) reported what executives repeatedly characterized as a record-setting fourth quarter, highlighting sharply accelerating U.S. demand for its Artificial Intelligence Platform (AIP) and strong profitability metrics alongside rapid revenue growth.
Management said fourth-quarter revenue rose 70% year-over-year to $1.407 billion, while full-year 2025 revenue increased 56% to $4.475 billion. CFO Dave Glazer said the quarter marked the company’s highest reported revenue growth rate as a public company and exceeded the high end of prior guidance by “over 900 basis points.”
U.S. business drove results; commercial strength stood out
Chief Revenue Officer Ryan Taylor said the U.S. business accounted for 77% of total revenue in the quarter. He also highlighted continued acceleration in U.S. commercial results, saying the segment “defied conventional enterprise software dynamics.” Glazer reported fourth-quarter U.S. commercial revenue increased 137% year-over-year and 28% sequentially to $507 million, while full-year U.S. commercial revenue grew 109% to $1.465 billion.
On the broader commercial segment, Palantir reported fourth-quarter commercial revenue of $677 million, up 82% year-over-year and 23% sequentially. Full-year commercial revenue increased 60% to $2.073 billion. International commercial growth remained comparatively muted, with fourth-quarter international commercial revenue up 8% year-over-year to $171 million and full-year international commercial revenue up 2% to $608 million.
Government business expanded; Navy award and Maven updates highlighted
Palantir’s government segment also posted strong growth. Glazer said fourth-quarter government revenue increased 60% year-over-year and 15% sequentially to $730 million. U.S. government revenue rose 66% year-over-year to $570 million, while international government revenue grew 43% to $160 million. Full-year government revenue climbed 53% to $2.402 billion.
Taylor pointed to a U.S. Navy contract “worth up to $448 million” to modernize the shipbuilding supply chain and accelerate delivery of naval vessels. CTO Shyam Sankar provided updates on defense-related deployments, including Maven usage “at all-time highs,” supporting “simultaneous real-world events across combatant commands in the Joint Force.” He said Maven would continue to be rolled out to all combatant commands and additional networks over the rest of the government fiscal year.
Sankar also described a live-fire exercise involving a new Maven Edge agent called MAGE, which he said enabled mission intent, onboard planning, reaction to emergent battlefield conditions, and execution. He added that Palantir’s software is increasingly used as a “builder platform” inside defense organizations, with users developing AI applications rather than only consuming them.
Bookings, customer metrics, and expansion activity
Palantir reported record bookings in the quarter. Glazer said total contract value (TCV) bookings reached $4.3 billion, up 138% year-over-year and surpassing the prior quarterly record by more than $1.5 billion. Commercial TCV bookings were $2.6 billion, up 161% year-over-year and 83% sequentially. U.S. commercial TCV bookings were $1.3 billion in the quarter; for full-year 2025, U.S. commercial TCV bookings totaled $4.3 billion, up 161% from the prior year.
Customer count grew 34% year-over-year and 5% sequentially to 954. Glazer said trailing 12-month revenue from the top 20 customers increased 45% year-over-year to $94 million per customer. He also reported net dollar retention of 139%, up 500 basis points from the prior quarter, driven by expansions at existing customers and contributions from customers acquired in the prior year.
Taylor and Karp described rapid customer expansions and large initial deal sizes as AIP shortened the path from early engagement to production. Taylor cited examples of customers expanding annual contract value (ACV) from $7 million in Q1 2025 to $31 million by year-end, and from $4 million to over $20 million over the same period. He also said a healthcare company signed a $96 million deal after completing two bootcamps, while an engineering services company signed an $80 million deal following demos.
Profitability and cash flow: Rule of 40 score surged
Alongside the growth, the company reported strong profitability. Glazer said adjusted operating income in Q4 was $798 million, representing a 57% margin and exceeding prior guidance by 500 basis points. Full-year 2025 adjusted operating income was $2.3 billion, a 50% margin and an 1,100-basis-point expansion versus 2024. Adjusted gross margin was 86% for the quarter and 84% for the full year.
Palantir generated $777 million in cash from operations and $791 million in adjusted free cash flow in Q4, with adjusted free cash flow margin of 56%. For the full year, cash from operations totaled $2.13 billion and adjusted free cash flow was $2.27 billion, a 51% margin and 82% growth year-over-year. The company ended the quarter with $7.2 billion in cash, cash equivalents, and short-term U.S. Treasury securities.
Glazer also highlighted Palantir’s “Rule of 40” results. He said the fourth-quarter Rule of 40 score increased 13 points sequentially to 127, while the full-year score was 106%. CEO Alex Karp underscored these figures, calling them “one of the truly iconic performances in the history of corporate performance or technology,” and stressed that the results were “fully organic,” noting the company does not pursue acquisitions.
Outlook: 2026 guidance calls for continued growth and profitability
For first-quarter 2026, Palantir guided revenue of $1.532 billion to $1.536 billion and adjusted income from operations of $870 million to $874 million. For full-year 2026, the company guided revenue of $7.182 billion to $7.198 billion, with midpoint growth of 61% year-over-year. The company also guided U.S. commercial revenue “in excess of $3.144 billion,” representing growth of at least 115%, adjusted income from operations of $4.126 billion to $4.142 billion, and adjusted free cash flow of $3.925 billion to $4.125 billion. Glazer said the company expects GAAP operating income and net income in each quarter of 2026.
During Q&A, Karp addressed international adoption, describing what he called hesitance in parts of Canada and Europe and saying demand in the U.S. is consuming much of the company’s bandwidth. Responding to questions about reindustrialization and defense manufacturing, Karp said interest extends beyond shipbuilding into “fighters, bombers, surface vessels, drones, weapons themselves, munitions,” spanning both production and sustainment, with ShipOS described as a kernel powered by Warp Speed.
About Palantir Technologies (NASDAQ:PLTR)
Palantir Technologies is a software company that develops data integration, analytics and operational decision-making platforms for government and commercial customers. Founded in 2003 by a team that included Alex Karp and Peter Thiel, Palantir has grown into a provider of enterprise-scale software designed to help organizations integrate disparate data sources, build analytic models and drive operational workflows. The company went public in 2020 and continues to position its products around large, complex data projects where security, provenance and real-time collaboration are important.
Palantir’s product portfolio centers on a small number of core platforms.
