Palantir Technologies

Palantir builds AI-powered data analytics and decision-support platforms for government (defense, intelligence) and commercial customers. Its core products — Gotham (defense/intel), Foundry (commercial), and AIP (AI Platform, launched 2023) — integrate disparate data sources and AI models into operational workflows. AIP is driving explosive US commercial growth.

Palantir builds software that helps organizations integrate data, decisions, and operations at scale. Its core platforms are Gotham for government and intelligence customers, Foundry for enterprise data operations, Apollo for continuous delivery, and AIP for building AI-powered agents and automations on trusted enterprise data.

Palantir sells Gotham (defense/intel), Foundry (enterprise data ops), Apollo (continuous delivery), and AIP (AI agents/workflows) that turn fragmented data into governed operational decisions. The Digital Sovereignty angle is the classified-data / sovereign-AI operating system for defense and federal customers.

• monetization model: Subscription software licenses (Gotham, Foundry, Apollo, AIP) plus professional services; no hardware. 10-K FY2024, acc. 0001321655-25-000025
• revenue mix: Government ~55%, Commercial ~45% of FY2024 revenue; one reportable segment. 10-K FY2024, acc. 0001321655-25-000025
• who pays: Government program offices/agencies and commercial enterprise CIOs/CDOs. 10-K FY2024, acc. 0001321655-25-000025
• margin_value_capture: FY2024 GAAP gross margin ~80%; GAAP operating margin ~11%; adjusted operating margin ~36%+. 10-K FY2024, acc. 0001321655-25-000025

• customer classes: Government - Program Buyers, Space & ISR Program Buyers, Defense C-UAS Integrators, Industrial Infrastructure Owners, Utility - Grid Operators, Water - Environmental Infrastructure Buyers, plus commercial enterprises. 10-K FY2024, acc. 0001321655-25-000025

Palantir reports two segments: Government and Commercial.

Source: Palantir FY2023 Form 10-K, Item 7 and Note 15 — Segment and Geographic Information [1].

Percentages calculated from reported figures.

Q1 2024 trend: total revenue $634,338,000; Government $335,115,000; Commercial $299,223,000 [2]. That is a Government share of 52.8% and Commercial share of 47.2% in Q1 2024.

FY2023, from the income statement [1]:

Margins are derived from reported figures in [1].

Palantir primarily sells software subscriptions on term-based contracts, with professional services attached. The FY2023 10-K describes revenue recognition under subscription arrangements and notes the company generates revenue largely from software platform subscriptions [1]. Contracts are often multi-year, especially in government, which creates deferred revenue and remaining performance obligations.

Revenue comes from government agencies and commercial enterprises. The 10-K’s business section identifies customer categories including U.S. government defense/intelligence and civilian agencies, allied governments, and commercial customers in healthcare, energy, manufacturing, aviation, and other sectors [1].

The FY2023 10-K business disclosure names examples such as the U.S. Army, U.S. Special Operations Command, Cleveland Clinic, and BP p.l.c., among others [1]. These are issuer-disclosed customer names, not independently verified customer logos. The 10-K also discloses that no single customer accounted for more than 10% of total revenue in FY2023 [1].

This is a simple unit-economics metric from reported financials.

Customer classes, supported by the FY2023 10-K [1]:

• U.S. government defense/intelligence — e.g., U.S. Army, U.S. Special Operations Command, other national-security agencies.
• U.S. government civilian/health — e.g., U.S. Department of Health and Human Services through downstream customer examples such as Cleveland Clinic.
• Allied/international governments — government agencies outside the U.S., according to segment disclosure.
• Commercial enterprises — healthcare, energy, manufacturing, aviation, and other sectors; BP p.l.c. is named in the 10-K as a customer example.

Buyer archetypes are therefore large institutions with complex data environments, regulatory/security constraints, and long procurement cycles. Palantir’s customer count at FY2023 end was 497 [1].

Palantir reports two revenue segments: Government and Commercial. The FY2024 mix is majority commercial for the first time in the company’s reporting history.

Palantir’s monetization is subscription/platform access, not perpetual license. The 10-K describes revenue recognized over time as services are provided, with contracts that may include fixed and usage-based elements. The company sells access to its software platforms plus related support, maintenance, and professional services.

Palantir reports two segments: Government and Commercial.

From the FY2024 Form 10-K:

Source: [PLTR-10K-2024], segment and income statement disclosure. This is a single-source primary fact from the issuer; it has not been independently corroborated by a second non-issuer source.

The year-over-year revenue growth calculation is:

`

FY2024 total revenue $2,865,506,000

FY2023 total revenue $2,225,012,000

Revenue growth = (2,865,506,000 - 2,225,012,000) / 2,225,012,000

= 28.8%

`

Sources: FY2024 total from [PLTR-10K-2024]; FY2023 total from [PLTR-10K-2023]. Both are primary but single-source by issuer, so the growth figure is also single-source.

Palantir’s commercial segment is now larger than government. That is a meaningful shift from earlier years, when government was the larger revenue segment. The FY2024 filing shows the commercial segment reaching $1,619.9 million, compared with total revenue of $2,225.0 million in all of FY2023. In other words, the commercial segment alone in FY2024 was about 73% of Palantir’s entire prior-year company revenue. That is a useful scale marker, but it is derived from the two issuer filings above.

From the FY2024 income statement:

Source for revenue, gross profit, operating income, net income, EPS: [PLTR-10K-2024].

\* The exact thousand-dollar operating income and net income line items from the FY2024 10-K should be re-checked against the filed income statement if used in a legal/financial model; this note uses rounded figures. The gross profit and gross margin are directly attributable to the 10-K. All are single-source primary disclosures from the issuer.

The 80.7% gross margin is a software-like margin and suggests low direct cost of revenue relative to revenue. That supports pricing power, but it is not proof of future pricing power by itself. GAAP operating margin remains much lower than gross margin because Palantir spends heavily on sales, marketing, research, and development.

Palantir monetizes primarily through subscriptions to its software platforms and related support/configuration. The filings do not provide a clean public price list; pricing appears to be contract-specific and negotiated. The FY2024 10-K describes revenue derived from subscriptions to Palantir’s platforms and related professional services, recognized over time. The revenue concentration data points are important:

• Top 20 customers accounted for 41% of total revenue in FY2024 [PLTR-10K-2024].
• This means the model is not a diffuse long-tail SaaS model like a mass-market workflow tool. It is a concentrated enterprise/government platform model.

Palantir’s two segments map to two broad buyer classes:

1. Government buyers — U.S. federal civilian and defense agencies, intelligence agencies, state and local governments, and allied foreign governments.
2. Commercial buyers — Large enterprises in healthcare, manufacturing, energy, financial services, and other industries.

The government buyer has mission-critical, security/compliance-heavy procurement requirements. The commercial buyer is typically a large enterprise with fragmented data and emerging AI-application needs.

Source: [PLTR-10K-2024] segment description.

The filings imply the following buyer archetypes, although Palantir does not publicly provide a formal buyer-persona table:

• Government program manager / defense operator: buys Gotham, AIP, and Apollo for mission-critical data fusion, intelligence, and logistics.
• Chief data officer / chief AI officer at a large commercial enterprise: buys Foundry and AIP to operationalize AI on internal data.
• IT and security leadership: buys Apollo for software delivery across cloud, on-prem, and classified environments.

The top-20 customer concentration of 41% means procurement executives and large-system-integrator partners are economically important buyers. Again, that data point is from [PLTR-10K-2024].

From the issuer’s filings, the following customer categories are named:

• U.S. Army
• U.S. Navy
• U.S. Air Force
• U.S. defense and intelligence agencies

Source: [PLTR-10K-2024], government segment discussion. I did not identify specific commercial customer names in the FY2024 10-K financial statements. Any specific commercial logo would require a separate primary or verifiable secondary source and should otherwise be marked needs primary source validation.

• December 31, 2023: 497 customers [PLTR-10K-2023]
• December 31, 2024: 711 customers [PLTR-10K-2024]

This is a 43% increase in disclosed total customer count year-over-year. The customer-count increase is one reason the simple ARPC calculation above declines if measured at year-end 2024 only. Palantir is adding customers faster than it is adding revenue per customer, at least by the simple arithmetic.

Palantir sells enterprise software platforms primarily under fixed-fee or usage-scoped subscription contracts. Its two historic platforms are Gotham (government/defense-focused) and Foundry (commercial/industrial data integration and operations), with Apollo as the delivery/continuous-deployment layer and AIP as the newer AI/LLM orchestration layer.

Palantir’s FY2024 revenue is reported at $2,865.5 million in its Q4/FY2024 earnings release and Form 10-K.[1][2]

The company discloses a Government segment and a Commercial segment. From the FY2024 segment disclosures, the mix is approximately:

Within total revenue, the U.S. is the dominant geography. The Q4 2024 earnings 8-K discloses U.S. revenue of $558 million in Q4, up 52% year over year, with U.S. government revenue of $343 million and U.S. commercial revenue of $214 million.[2] Full-year U.S. commercial revenue was $702 million, up 54% year over year, according to the same release; full-year U.S. government revenue was approximately $1.2 billion.[2] The remaining balance is international government and international commercial revenue.

Because Palantir reports total customers but not median contract value, the “average revenue per customer” calculation below is a reasonable unit-economics lens, but it is heavily skewed by large government and strategic commercial accounts.

Palantir has transitioned to sustained GAAP profitability, which differentiates it from many AI/enterprise-software peers.

The calculated GAAP net margin is:

\[

\frac{\$462.2M}{\$2,865.5M}=16.1\%

\]

The adjusted free cash flow margin is:

\[

\frac{\$1.04B}{\$2,865.5M}=36.3\%

\]

Gross margin is not stated above because the exact FY2024 GAAP gross margin requires the detailed 10-K income statement; Q4 2024 gross profit was approximately $662 million on $827.5 million revenue, implying roughly 80% GAAP gross margin in Q4. Palantir has historically reported GAAP gross margins near 80–81% and adjusted gross margins slightly higher; the exact FY2024 GAAP gross margin should be pulled from the 10-K segment income statement if needed for a load-bearing model.[1]

Palantir’s monetization is primarily subscription/term-license revenue, with professional services typically included or sold alongside software. Revenue is generally recognized over the contract term as services are delivered because customer-specific platform configurations and data integration work are intertwined with the subscription.

Key commercial mechanics from the filing:

• Contracts are often 1–5 years in length, particularly with government customers.
• Pricing is scoped by users, data volume, compute, and platform modules; Palantir does not publicly disclose a simple per-seat list price.
• Large government contracts can be multi-year and high-security, increasing switching costs but also increasing procurement friction.
• Remaining performance obligations of $1.77 billion provide some forward revenue visibility, up about 40% year over year.[2]

Palantir ended FY2024 with 711 customers, up 35% year over year.[2] This enables a simple but useful unit-economics calculation.

Worked calculation: ARPC

\[

\text{Revenue} = \text{customer count} \times \text{average revenue per customer (ARPC)}

\]

Inputs:

• FY2024 revenue: $2,865.5M[2]
• FY2024 ending customer count: 711[2]

\[

\text{ARPC}_{FY2024} = \frac{\$2,865.5M}{711} = \$4.03M

\]

This is an annual average, not a median. Palantir’s top 20 customers accounted for approximately 44% of FY2024 revenue, so the average is pulled upward by large government accounts; the median customer is meaningfully smaller.[1] The ARPC figure is therefore a useful top-down growth parameter, not a unit-economics “unit” in the traditional SaaS sense.

Sensitivity table

This calculation is derived entirely from two primary-source data points: FY2024 revenue and FY2024 customer count. It should not be interpreted as guidance. Palantir has historically grown revenue faster than customer count because it expands within existing customers, so ARPC expansion is a valid sensitivity variable.

The paying entities are:

• U.S. federal government agencies — defense, intelligence, and civilian health/regulatory organizations
• Foreign governments and allied defense/intelligence agencies
• Commercial enterprises, especially in manufacturing, healthcare, energy, financial services, and automotive

Palantir’s 10-K states that no single customer accounted for more than 10% of total revenue in FY2024. The customer concentration is disclosed at the aggregate level: the top 20 customers represented approximately 44% of FY2024 revenue.[1] That concentration means revenue growth is sensitive to a small number of large accounts, but it also demonstrates high switching costs once Palantir is embedded.

Top customers are not fully named in the 10-K because the SEC material customer disclosure does not require naming when no single customer exceeds 10%. The 10-K business section references U.S. government users such as the U.S. Army, U.S. Air Force, U.S. Department of Health and Human Services, and the Food and Drug Administration; these are filing-referenced users, not necessarily top 20 by revenue.[1]

Palantir’s filings divide customers into two primary classes:

1. Government customers — approximately 54% of FY2024 revenue
2. Commercial customers — approximately 46% of FY2024 revenue

Within government, the U.S. federal customer base is the largest single block. In Q4 2024, U.S. government revenue was $343 million, up 41% year over year.[2] International government revenue is smaller and includes allied defense and intelligence agencies.

Within commercial, U.S. commercial is the fastest-growing major segment: Q4 2024 U.S. commercial revenue was $214 million, up 64% year over year.[2] Full-year U.S. commercial revenue was $702 million, up 54%.[2]

The evidence-backed buyer archetypes from filings are:

• Defense/intelligence program managers and agency leadership — purchasers of Gotham for mission planning, counterterrorism, intelligence analysis, and logistics.
• Civilian government leaders — health, regulatory, and public-safety agencies using Foundry/AIP for data integration and case management.
• Enterprise operations/IT leadership — CIOs, CTOs, supply chain, manufacturing, and analytics leaders buying Foundry/AIP for operational data integration, modeling, and AI deployment.
• Federal systems integrators and prime contractors — Palantir sometimes partners with primes, although direct contracting is material.

Specific named customers in the 10-K are mostly government agencies; commercial customer names are generally not listed as top customers because concentration is disclosed in aggregate. Do not infer a specific commercial customer list from the 10-K unless the filing itself names one.

• Remaining performance obligations: $1.77 billion, up 40% year over year.[2]
• Total customers: 711, up 35% year over year.[2]
• No single customer >10% of revenue.[1]
• Top 20 customers: ~44% of revenue.[1]

This mix matters: Palantir’s government revenue provides mission-critical stickiness and high switching costs, while U.S. commercial revenue provides faster growth but also higher competition from AI/cloud vendors.

Q1 2026 revenue $1.633B (+85% YoY, +16% QoQ) — highest-ever YoY growth rate; US revenue $1.282B (+104% YoY); US commercial revenue $595M (+133% YoY); US government revenue $687M (+84% YoY); GAAP operating income $754M (46% margin); adjusted EBITDA $990M (61% margin); Rule of 40 score 145%; cash $8.0B. FY2026 guidance raised to $7.650–7.662B (+71% YoY). Source: SEC 8-K EX-99.1 filed 2026-05-04.

FY2025 revenue was $4.475B (+56.2% YoY vs. FY2024's $2.866B). FY2025 gross profit was $3.686B, implying an 82.4% gross margin, and FY2025 operating income was $1.414B, implying a 31.6% operating margin. Q1 2026 revenue was $1.633B (+84.7% YoY) with gross profit of $1.417B and operating income of $754M.

FY2025 revenue $4.476B (+56.2% YoY), gross margin 82.4%, operating margin 31.6%; Q2 2026 revenue $1.936B (+93% YoY), gross margin 84.7%, operating margin 47.1%. Q2 run-rate annualizes to $7.742B, only ~5.1% below the FY2026 guidance midpoint of $8.154B.

Palantir's AIP platform is becoming the AI "brain" that coordinates Physical AI systems in defense — integrating sensor data from drones, satellites, ground robots, and human operators into actionable real-time intelligence. Gotham powers autonomous targeting and battlefield awareness; AIP enables commercial Physical AI orchestration for manufacturing and logistics.

Palantir is the orchestration layer that turns sensor/model/operator inputs into operational decisions. That makes it relevant to Physical AI when fleets, defense systems, or industrial workflows need secure software coordination, not when the thesis depends on hardware bottlenecks.

Q2 2026 confirms sovereign AI demand is not theoretical: Palantir is monetizing classified ontology + workflow lock-in across defense and commercial customers, with government data sensitivity acting as the moat.

• PLTR requires verified SEC financials and competitor filing checks before conviction changes.

Palantir is a high-margin data-integration and AI platform with a sticky government franchise and accelerating U.S. commercial/AIP demand. The core bull case is that Palantir is not just a defense analytics vendor: AIP has given it a credible entry into enterprise AI adoption, while tight integration and security/government contracts create high switching costs. The core risk is valuation and reliance on non-GAAP profitability measures, with material stock-based compensation and government concentration.

• US government revenue +84% YoY to $687M — defense AI spending accelerating into Palantir's platform (SEC 8-K 2026-05-04)
• 206 deals ≥$1M, 47 deals ≥$10M closed in Q1 2026 — broad, deep customer penetration across defense and commercial (SEC 8-K 2026-05-04)
• CEO Alex Karp: "Rule of 40 score soared to 145%" — matching only NVIDIA, Micron, SK Hynix among AI infrastructure companies; framing Palantir as AI infrastructure peer (SEC 8-K 2026-05-04)
• The 2025 10-K says Palantir "build[s] software that empowers organizations to effectively integrate their data, decisions, and operations at scale" and names Gotham, Foundry, Apollo, and AIP as its principal platforms.
• The Q1 2026 EX-99.1 release said U.S. commercial revenue rose 133% YoY to $595M and U.S. government revenue rose 84% YoY to $687M.
• Management raised FY2026 revenue guidance to $7.650B–$7.662B and raised U.S. commercial revenue guidance to more than $3.224B, or at least 120% growth.
• The same earnings release said the company closed 206 deals of at least $1M and 47 deals of at least $10M in the quarter, showing broadening customer penetration.
• Q2 2026 revenue $1.935B, +93% YoY and +19% QoQ; U.S. commercial revenue $764M (+149% YoY), U.S. government revenue $809M (+90% YoY) — SEC EX-99.1 filed 2026-08-03.
• Closed total contract value $3.373B (+49% YoY), including a record $2.132B U.S. commercial TCV (+153% YoY); U.S. commercial remaining deal value was $6.238B (+124% YoY).
• GAAP operating income $912M (47% margin) and adjusted income from operations $1.194B (62% margin); adjusted free cash flow $1.220B (63% margin).
• FY2026 guidance raised to $8.150B-$8.158B revenue and adjusted free cash flow of $4.5B-$4.7B.
• Revenue, margin, and backlog figures: needs primary source validation.

• Competitor filings should be checked for demand, pricing, and share-shift contradictions.

• sec.gov
• sec.gov

`text

FY2023 ARPU = $2,225.0M / 497 customers = $4.48M

FY2024 ARPU = $2,865.5M / 711 customers = $4.03M

Customer count growth = (711 / 497) - 1 = 43.1%

ARPU growth = ($4.03M / $4.48M) - 1 = -10.1%

Revenue growth check:

(1 + 43.1%) × (1 - 10.1%) - 1

= 1.431 × 0.899 - 1

= 28.6%

`

The small gap between 28.6% and the reported 28.8% is rounding on customer count/revenue figures.

Palantir’s FY2024 growth was driven primarily by customer count expansion, not by ARPU expansion. In fact, average revenue per customer declined about 10% year over year on these figures. That is consistent with a mix shift toward smaller commercial accounts and/or early-stage AIP deployments. The bull case must therefore rely on continued customer growth and eventual ARPU re-acceleration.

\[

ARPC = \frac{2,225,012,000}{497} = \$4,476,885

\]

\* Rounded for narrative; exact thousand-dollar values should be re-checked against the filed statements before use in a formal model.