PLTR

1. Key Historical Highlights

• September 17, 2025: Palantir achieved CMMC Level 2 certification, reinforcing eligibility to handle CUI and promoting FedStart to speed partner compliance.
• September 10, 2025: Palantir partnered with Hadean to deploy wargaming, C2, and training products on Foundry across the UK Ministry of Defence.
• September 04, 2025: Palantir announced a collaboration with Lumen to bring Foundry and AIP to modernize operations, finance, and technology functions.
• September 04, 2025: Palantir and Lear expanded their partnership for five years to broaden Foundry, Warp Speed, and AIP across global manufacturing.
• September 04, 2025: Palantir hosted AIPCon 8 spotlighting 70+ U.S. commercial customers showcasing Foundry and AIP use cases.
• August 12, 2025: Palantir expanded its multi-year partnership with SOMPO, supporting thousands of users and AI-driven underwriting improvements.
• August 04, 2025: Q2 2025 revenue reached $1.004 billion with 48% year-over-year growth, GAAP net income was $327 million, and full-year guidance was raised.
• July 22, 2025: Management reported Q2 gross profit of $810.8 million at an 81% margin and operating income of $269.3 million.
• July 02, 2025: BlueForge Alliance and Palantir launched Warp Speed for Warships to accelerate warship production and enhance fleet readiness.
• June 30, 2025: Palantir named Accenture Federal Services a preferred implementation partner and initiated training of 1,000 professionals on Palantir platforms.
• June 26, 2025: Palantir partnered with The Nuclear Company to co-develop a Nuclear Operating System to streamline reactor construction.
• June 10, 2025: Palantir and Fedrigoni announced a multi-year AI partnership expanding from stock optimization to broader digital transformation.
• May 08, 2025: The Joint Commission formed a long-term partnership with Palantir to apply AI to accreditation and healthcare data.
• May 06, 2025: xAI, TWG Global, and Palantir announced a collaboration to deliver turnkey AI solutions for financial services.
• May 05, 2025: Q1 2025 revenue was $884 million with 39% year-over-year growth and raised full-year revenue guidance.
• April 17, 2025: Anthropic leveraged Palantir FedStart to bring Claude to the U.S. public sector on a secure, accredited infrastructure.
• March 14, 2025: R1 launched the R37 AI lab with Palantir to develop agentic automation for revenue cycle management.
• March 13, 2025: Palantir added six new Warp Speed customers focused on scaling U.S. manufacturing in defense and aerospace.
• December 18, 2024: Palantir extended the U.S. Army Vantage program with a $400.7 million contract and a $618.9 million ceiling over four years.
• December 03, 2024: Palantir received FedRAMP High authorization for its Federal Cloud Service and Supporting Services.

2. Financial Performance Overview

• Rapid top-line acceleration with revenue up 39% year-over-year in Q1 2025 to $884 million and 48% in Q2 2025 to $1.004 billion, driven by U.S. revenue up 68% and U.S. commercial up 93% year-over-year in Q2.
• Profitability expanded with gross margins around 80–81% and Q2 2025 GAAP net income of $327 million at a 33% margin, reflecting strong operating leverage.
• Cash generation remains robust with adjusted free cash flow margins of 42% in Q1 and 57% in Q2 2025, and full-year 2025 adjusted FCF guidance raised to $1.8–$2.0 billion.
• Bookings and pipeline strengthened as Q2 2025 total contract value hit a record $2.27 billion (up 140% year-over-year), 157 deals were at least $1 million, and customer count rose 43% year-over-year.
• Full-year revenue guidance increased to $4.142–$4.150 billion for 2025, building on 2024 revenue of $2.9 billion with an 80% gross margin and a remaining deal value of $5.4 billion.
• Gap: Cash balance, debt levels, capex, and share repurchase activity were not disclosed in the provided materials.

3. Management Effectiveness

• Management is executing a clear dual-use strategy, expanding rapidly in both U.S. government and U.S. commercial while securing key certifications (FedRAMP High, CMMC Level 2) that unlock regulated-market demand.
• Go-to-market leverage is evident through marquee partnerships and channels (Accenture Federal Services, TWG Global, sector alliances) and developer enablement initiatives (DevCon, AIP for Developers).
• Operating discipline is improving as revenue growth accelerates alongside sustained ~80% gross margins and rising free cash flow, indicating effective cost control and scalability.
• Product velocity and adaptability are demonstrated by rapid deployment of AIP across industries and new domain offerings like Warp Speed and the Nuclear Operating System.
• Evidence lacking: Specific capital allocation choices such as buybacks, dividends, M&A strategy, and cash/debt posture were not detailed in the provided documents.

4. Key Quotes from Management

• "This was a phenomenal quarter. We continue to see the astonishing impact of AI leverage. Our Rule of 40 score was 94%, once again obliterating the metric. Year-over-year growth in our U.S. business surged to 68%, and year-over-year growth in U.S. commercial climbed to 93%. We are guiding to the highest sequential quarterly revenue growth in our company’s history, representing 50% year-over-year growth." — Alex C. Karp, Co-Founder and Chief Executive Officer, Palantir Technologies (Q2 2025 Financial Results and Revenue Guidance, August 04, 2025)
• "We are proud to partner with Lear and showcase the very best of what Warp Speed and Palantir are capable of. Lear is improving the lives of its employees and developing the manufacturing plants of the future by deploying Palantir onto its production floors." — Alex Karp, Co-founder and Chief Executive Officer, Palantir Technologies (Five-Year Partnership Expansion with Lear Corporation, September 04, 2025)
• "Our Rule of 40 score increased to 83% in the last quarter, once again breaking the metric. We are in the middle of a tectonic shift in the adoption of our software, particularly in the U.S. where our revenue soared 55% year-over-year, while our U.S. commercial revenue expanded 71% year-over-year in the first quarter to surpass a one-billion-dollar annual run rate. We are delivering the operating system for the modern enterprise in the era of AI. Consequently, we are raising our full-year guidance for total revenue growth to 36% and our guidance for U.S. commercial revenue growth to 68%." — Alexander C. Karp, CEO, Palantir Technologies (Q1 2025 Financial Results and Revenue Guidance Update, May 05, 2025)
• "These are not incremental advances. We believe our results are indicative of a revolution sweeping across our business and industry." — Alexander C. Karp, Chief Executive Officer & Co-Founder, Palantir Technologies Inc. (Letter to Shareholders, May 05, 2025)
• "Our business results continue to astound, demonstrating our deepening position at the center of the AI revolution. Our early insights surrounding the commoditization of large language models have evolved from theory to fact." — Alexander C. Karp, Co-Founder and Chief Executive Officer, Palantir Technologies Inc. (Q4 2024 Financial Results and FY 2025 Guidance, February 03, 2025)
• "Accenture Federal is a natural Palantir partner." — Dr. Alex Karp, CEO, Palantir Technologies (Strategic Partnership Announcement with Accenture Federal Services, June 30, 2025)
• "So many of the people protecting us look to their faith. Palantir is very proud to partner with Pray.com in supporting the broader Christian community, and especially our warfighters." — Alex Karp, CEO, Palantir (Partnership Announcement with Palantir Technologies on AI Applications, December 18, 2024)