Q1 2026 Earnings Call Transcript

Good afternoon. I'm Ana Soro from Palantir Technologies Inc.'s finance team, and I would like to welcome you to our first quarter 2026 earnings call. We will be discussing the results announced in our press release issued after the market closed and posted on our Investor Relations website. During the call, we will make statements regarding our business that may be considered forward-looking within applicable securities laws, including statements regarding our second quarter and fiscal 2026 results, management's expectations for our future financial and operational performance, and other statements regarding our plans, prospects, and expectations.

These statements are not promises or guarantees and are subject to risks and uncertainties, which could cause them to differ materially from actual results. Information concerning those risks is available in our earnings press release distributed after the market closed today and in our SEC filings. We undertake no obligation to update forward-looking statements except as required by law. Further, during the course of today's call, we will refer to certain adjusted financial measures.

These non-GAAP financial measures should be considered in addition to, not as a substitute for, or in isolation from GAAP measures. Additional information about these non-GAAP measures, including reconciliation of non-GAAP to comparable GAAP measures, is included in our press release and investor presentation provided today. Our press release, investor presentation, and other earnings materials are available on our Investor Relations website at investors.palantir.com. Over the course of the call, we will refer to various growth rates when discussing our business.

These rates reflect year-over-year comparisons unless otherwise stated. Joining me on today's call are Alexander C. Karp, chief executive officer; Shyam Sankar, chief technology officer; David A. Glazer, chief financial officer; and Ryan Taylor, chief revenue officer and chief legal.

I will now turn it over to Ryan Taylor to start the call.

The last three months have been some of the most exciting in the history of Palantir Technologies Inc. as we have watched the whole world begin to see the incredible promise of operational AI as well as the risks and perils of being beholden to models alone. We achieved 85% year-over-year revenue growth, our highest overall revenue growth rate as a public company, and 16% sequential growth. Our U.S. business, now 79% of total revenue, surpassed 100% year-over-year growth for the first time since our DPO, growing 104% year-over-year and 19% sequentially. Our Rule of 40 score climbed to 145, up from 127 last quarter, on absolute AIP dominance.

AIP is the only platform that establishes a true AI no-slop zone, a necessary requisite to converting potential AI leverage into compounding real-world value without risking enterprise disaster. As the AIG CEO noted in their recent earnings call, they are deploying AIP to implement a multi-agentic underwriting and claims solution comprised of purpose-built agents ingesting submissions, evaluating risk, benchmarking pricing, and detecting fraud, all coordinated through the ontology. When you want AI to work in production, in a real enterprise, at real scale, where there is no room for slop, there is only one platform.

AIP.

It is not just the playbook of cutting costs and streamlining processes. AIP is the battle-tested platform that allows the wholesale redefinition of how companies compete within their industries. The depth of our customer commitments reflects that ambition. Referencing our work with Motor and Freedom Mortgage, where we are revamping the end-to-end mortgage process with AIP, the Motor chairman stated, quote, this strategic partnership will reshape the future of our industry.

Together, we are building technology that can help improve affordability, lower borrowing costs, and expand access to homeownership for millions of Americans. Our U.S. commercial business grew at a pace that speaks to the compounding real value created for our customers. For example, on the back of a 26% increase in engine performance with AIP, GE Aerospace deepened their partnership with Palantir Technologies Inc. last quarter to deploy agentic AI-powered solutions across their production system and military aviation supply chain, with a shared mission of ensuring that more aircraft remain available to train America's next generation of U.S.

Air Force pilots. Ondas and World View expanded their work with Palantir Technologies Inc. to bring AIP to the stratosphere and build the operational backbone required to scale their missions. They noted, quote, Palantir-powered workflows do not just make one launch faster, they make dozens or 100 simultaneous launches possible with the same operational efficiency. Load-bearing institutions upon which the West depends know, or will soon know, that our AI platforms are the indispensable means of delivering their must-win outcomes.

An upshot of our transformational work across every domain: the foundation remains our deployment of Maven Smart System to empower our troops. As the chief digital and AI officer at the Department of War noted, quote, I care about one thing and one thing only: that the 18-, 19-, 20-year-old kid who had no choice in where he went or what threat he was facing—I want him to win and come home. That is why we do it. Palantir Technologies Inc. is very helpful in delivering this.

Beyond Maven, Ship OS, in partnership with the Department of the Navy, has produced remarkable impact at several manufacturing industrial base suppliers already, including dropping manufacturing bill of materials approval time from 200 hours to 15 seconds, increasing speed of contract review cycles by 57% to 73%, and reducing monthly material planning time by 94%. Just as commercial organizations are reshaping their industries, Ship OS is the reinvention of America's maritime industrial base. This is just the start of how our support of manufacturing processes will transform existential programs for the U.S. government.

In fact, we have already seen the government step in to transition and scale a successful private sector manufacturing program we are supporting. On the civil side, the USDA awarded Palantir Technologies Inc. a contract of up to $300 million last month to provide USDA with capabilities to support American farmers, secure farmland, enhance supply chain resilience, and shield agricultural programs from fraud, abuse, and foreign adversary influence. In government and commercial, Palantir Technologies Inc. is transforming how load-bearing institutions operate and how they win. I will now turn it over to Shyam.

Thanks, Ryan. For over two years now, we have been saying that while LLMs are improving, models are converging, and the cost per token continues to drop precipitously. GPT-4–equivalent performance that cost $20 per million tokens in early 2023 is now approximately a thousand times cheaper three years later. Because of this increased efficiency, use case demand for tokens is exploding.

Our AIP workflows today utilize vastly more tokens—agents orchestrating across the ontology, chaining reasoning, tool use, retrieval, and execution—and it is growing. This is Jevons' paradox. It is the single most important dynamic in enterprise software right now. When the Victorians built more efficient steam engines, everyone assumed coal consumption would fall.

Instead, it skyrocketed. Cheaper transport meant more demand for transport. Tokens are the new coal; AIP is the train. As inference gets cheaper, the number of tasks that you can economically assign to AI grows exponentially.

Precisely because tokens are so much cheaper, agent flows, tools self-correct. But in practice, the number of tasks that you can trust to a model without the right harness exponentially declines. More tokens means more slop. And the more commodity cognition you consume, the more you need a system that can prevent the economic harm so you can harness the economic value.

That system is AIP. That intermediary representation is the ontology. This is also why we are seeing the death of legacy software. AIP replaces static workflows not by replicating the playbook, but by eliminating the need for one.

Thomas Cavanagh Construction—97% of their employees use Foundry every day—and every other piece of software must now justify its existence. And so far, they have not been able to. We are seeing this internally too. This quarter, we replaced our old, expensive CRM with an AI-first solution built on AIP in a few months that users absolutely love.

Our customers are seeing the real value is not automating what you already do—it is doing what was previously impossible. A major telco set out to automate 10 million customer calls a year. The real insight was that the most dissatisfied customers never call; they churn silently. The reframe was counterintuitive: Do not use AI to reduce calls.

Use it to generate them. An AI advocate that proactively calls on every customer's behalf. The point is simple: Use AI to do more work—work that was never economically feasible before AIP. For every agent action, our customers need to answer three questions.

Who authorized this? What did it cost? Can I trust what it did? These questions need exact answers with precision.

There is no tolerance for slop. We are building a platform-native agent engine SDK, a single set of primitives for building, persisting, governing, and operating ontology-native agents. A common layer that lets you visualize every agent in your enterprise and control it, regardless of how it was built. A true agent operating system.

On top of that, unified cost attribution per agent, per session, per workflow, with administrative caps. Full provenance, so every ontology mutation traces back to the agent and reasoning chain that produced it. Security marking propagation from input data through agent sessions onto all output, with approval gates for any workflow that could reclassify information. That is how you get a CISO, a CFO, and a combat commander to say yes.

AIP is the no-slop zone—the platform where every agent action is governed, attributed, and auditable. Turning to U.S. government. On the foxhole side, Maven met its moment across real-world events in Q1. Usage has doubled in the past four months through March and is now 4x over the past twelve months—across the services, the combatant commands, the Joint Staff, and the intelligence community. When the stakes are highest—when failure is measured in lives and readiness—this is where we are uniquely positioned.

On the factory floor side, the demand on the defense industrial base to ramp production and sustainment has been so acute that we have surged resources from our commercial business. This is exactly what Warp Speed was built for—modernized American manufacturing. And we are doing just that where it counts the most. AIP is the default builder platform in the Department of [inaudible], with thousands of developers using AIFD, migrating legacy systems, standing up new capabilities, solving problems that used to require contractor teams and months of lead time.

Our software is becoming the most malleable and responsive weapon system for the joint force. Finally, what is now clear is that Mythos and SPUD and even other current-generation models with AIP are capable of finding novel vulnerabilities in complex cyber kill chains. They have discovered thousands of zero days across major operating systems and browsers. This is the Sputnik moment in the AI arms race.

The rate of vulnerability identification is about to skyrocket. Finding the bugs is no longer the limiting factor. Rapid-fire remediation with exact precision, immediacy, and absolute certainty is the new hard problem—knowing exactly what versions of what software are running where, and closing the remediation chain autonomously. Apollo was built for exactly this.

We are shipping the next generation of Apollo as we help our customers reposture for this world. And note the Jevons' paradox dynamic here too: More AI means more code. More code means more slop. More slop means more attack surface.

More attack surface means more vulnerabilities, and more vulnerabilities means more Apollo. I will turn it over to Dave.

Thanks, Shyam. We had an outstanding first quarter delivering our strongest ever Q1 sequential growth rate of 16% and our highest ever reported year-over-year growth rate of 85%. Our revenue growth rate accelerated for the eleventh consecutive quarter, highlighting the durability of the growth of our business at scale. We expanded our Rule of 40 score by 18 points quarter over quarter, from 127 in Q4 to 145 in Q1. Our U.S. business achieved triple-digit growth for the first time, driven by accelerating demand for our AI platform.

Revenue in our U.S. business grew 104% year-over-year and 19% sequentially in the first quarter. Our U.S. commercial business grew 133% year-over-year and 18% sequentially, and our U.S. government business grew 84% year-over-year and 21% sequentially. On the back of this continued strength in the U.S., we are raising our full-year 2026 revenue guidance midpoint to $7.656 billion, representing 71% growth year-over-year, a 10% increase over our full-year 2026 revenue guidance from last quarter, and our largest ever full-year revenue guidance raise. Turning to our global top-line results.

First quarter revenue grew 85% year-over-year and 16% sequentially to $1.633 billion. First quarter U.S. revenue grew 104% year-over-year and 19% sequentially to $1.282 billion. Customer count grew 31% year-over-year and 6% sequentially, to 1,007 customers. Revenue from our largest customers continues to expand.

First quarter trailing twelve-month revenue from our top 20 customers increased 55% year-over-year to $108 million per customer. Now moving to our commercial segment. First quarter commercial revenue grew 95% year-over-year and 14% sequentially, to $774 million. We closed $1.3 billion in commercial TCV bookings in the first quarter, representing 42% growth year-over-year.

Our AI platform dominates U.S. markets as the only real choice for deploying AI models operationally in a way that actually works. First quarter U.S. commercial revenue grew 133% year-over-year and 18% sequentially to $595 million. This exceptional growth even understates our U.S. commercial momentum. As Ryan noted, we had a successful U.S. commercial customer program transition to a U.S. government customer.

Absent this transition, U.S. commercial growth would have been 143% year-over-year and 22% sequentially. In Q1, we closed our third consecutive quarter of over $1 billion in U.S. commercial TCV bookings at $1.2 billion, representing growth of 45% year-over-year. Over the past twelve months, we closed $4.7 billion of U.S. commercial TCV bookings, a 115% increase from the prior twelve months, highlighting the accelerating demand for AI that creates real operational value. Total remaining deal value in our U.S. commercial business grew 112% year-over-year and 12% sequentially.

Our U.S. commercial customer count grew to 615 customers, reflecting growth of 42% year-over-year and 8% sequentially. First quarter international commercial revenue grew 26% year-over-year and 5% sequentially to $179 million. Revenue from strategic commercial contracts was $3 million for the quarter, representing 0.2% of overall revenue. We expect revenue from these contracts to be less than $0.5 million each remaining quarter of this year.

Shifting to our Government segment. First quarter Government revenue grew 76% year-over-year and 18% sequentially to $858 million. First quarter U.S. Government revenue grew 84% year-over-year and 21% sequentially to $687 million.

This growth was driven by continued execution in existing programs and new awards reflecting the growing demand for our AI platform in government. First quarter international government revenue grew 51% year-over-year and 7% sequentially to $172 million. We closed $2.4 billion of TCV bookings, up 61% year-over-year. On a dollar-weighted duration basis, TCV bookings grew 135% year-over-year.

Net dollar retention was 150%, an increase of 1,100 basis points from last quarter. The increase was driven both by expansions at existing customers and new customers acquired in Q1 of last year as load-bearing institutions continue to turn to Palantir Technologies Inc.'s battle-tested AI platform. As net dollar retention does not include revenue from new customers that were acquired in the past twelve months, it has not yet fully captured the acceleration and velocity in our U.S. business over the past year. We ended the first quarter with $11.8 billion in total remaining deal value, an increase of 98% year-over-year and 6% sequentially, and $4.5 billion in remaining performance obligations, an increase of 134% year-over-year and 9% sequentially.

As a reminder, RPO is primarily comprised of our commercial business, as it does not take into account contracts with an initial term less than twelve months and contractual obligations that fall beyond termination-for-convenience clauses, both of which are common in most of our government business. Turning to margin and expense. Adjusted gross margin, which excludes stock-based compensation expense, was 88% for the quarter. Adjusted income from operations, which excludes stock-based compensation expense and related employer payroll taxes, was $984 million in the quarter, representing adjusted operating margin of 60%.

Q1 adjusted expense was $649 million, up 7% sequentially and 32% year-over-year, primarily driven by the continued investment in our AI platform and technical hiring. We continue to expect expenses to ramp in 2026; we remain committed to investing in the product pipeline and the most elite technical talent, all while delivering on our goals of sustained GAAP profitability. GAAP net income was $871 million, representing a 53% margin. First quarter stock-based compensation expense was $[inaudible] and equity-related employer payroll tax expense was $28 million.

First quarter GAAP earnings per share was $0.34. First quarter adjusted earnings per share was $0.33. Additionally, our combined revenue growth and adjusted operating margin accelerated to 145% in the first quarter, an 18% increase to our Rule of 40 score from the prior quarter, and our eleventh consecutive quarter of an expanding Rule of 40 score. With our 2026 revenue and adjusted operating income guidance, we are guiding to a Rule of 40 score of 129% for the full year. Turning to our cash flow. In the first quarter, we generated $899 million in cash from operations and $925 million in adjusted free cash flow, representing margins of 55% and 57%, respectively.

We ended the quarter with $8 billion in cash, cash equivalents, and short-term U.S. Treasury securities. Now turning to our outlook. For Q2 2026, we expect revenue of between $1.797 billion and $1.801 billion and adjusted income from operations of between $1.063 billion and $1.067 billion.

For full year 2026, we are raising our revenue guidance to between $7.65 billion and $7.662 billion. We are raising our U.S. Commercial revenue guidance to in excess of $3.224 billion, representing a growth rate of at least 120%. We are raising our Adjusted Income from Operations guidance to between $4.44 billion and $4.452 billion.

We are raising our adjusted free cash flow guidance to between $4.2 billion and $4.4 billion. And we continue to expect GAAP operating income and net income in each quarter of this year. With that, I will turn it over to Alex for a few remarks, and then Ana will kick off the Q&A.

Well, welcome to yet another exciting earnings call. With these numbers, the ones that leap out to everyone are the over 100% growth in the U.S., the Rule of 145, the 85% growth in the U.S., and guiding to 71%, and just the underlying dynamics of that. You would think that the most interesting thing is just the truly n-of-one nature of these numbers. And in fact, it is pretty fascinating, especially to people who doubted that we would get this far.

But I think the most important thing about our earnings is it establishes beyond a doubt that while over the history of Palantir Technologies Inc., we focused on things that actually transform the world, the current environment is actually being transformed by the Palantir Technologies Inc. platform. And although there is a wide view out there in the world that AI slop is going to take over the world, our clients, especially lasting primordial infrastructure industries, know this is not the case. They buy our product despite the fact we have 70 salespeople. A normal company of our size would have 7,000. Only seven of our salespeople actually even really sell.

We are doing what a normal company would do with 7,000 salespeople with seven people. We are doubling the U.S. We are dominating on the battlefield. Shyam will talk about this later, but the way opposed and in contradistinction to both allies and friends and enemies is being done in our platform from beginning to end across the U.S.

The reality that we will be able to drive 100% growth in the U.S. is being driven by the fact that our customers either know or will know that you need actual results. Those results require granularity, specificity, actual relationship to facts. The appearance of software working is not software working. And the slop that is getting a lot of attention is not only dangerous in terms of the hyperbolic rhetoric that it also—like, there will be no jobs because of the slop—nothing will work.

We will have a godlike figure in the name of AI, when in fact, what actually does work is a platform built by a motley crew of highly technical people who over twenty years have been maligned for being right about the nature of having to build Foundry, the nature of having to build Apollo, the nature of an FDE, and the demand for this is once in a lifetime. And that demand is actually driving these financials, meaning growing 71% goal for the year. What did we miss? Okay.

In any case, I hope you all got that. This is like being on stage. So with that, maybe we will go to questions. But the unique way in which this company is being run, the unique way in which we built the products, the unique way in which we are willing to be non-mimetic.

When the whole world said software had to be worthless, we built platforms that worked. When the whole world said you could not extend it with FDEs, we went and built FDEs. When the whole world is saying AI slop without an ontology that allows you to put true statements and truths into the ontology and therefore produce actual results, we stuck to our guns. And what did we get?

We got these results. And I think if you just look at the results—how can a company grow 100% in the U.S. with, functionally, a nonexistent sales force, with the same number of people? Our free cash flow this quarter is larger than our revenue a year ago in the same quarter. Think about that.

Same company, same people, extended products—it is all being extended. And then look at the impact on the battlefield in the Middle East, on every government institution, on demand of our product, and in U.S. commercial. This is all the result of being right about product, right about execution, and standing in the headwinds of people who are certain they are right—now the new version is AI slop—and proving that they are wrong with our results. This is an incredible quarter, and I am very proud of this.

Aiden G. asks, how does Palantir Technologies Inc. expect to navigate an environment where AI is pressuring software companies' capabilities?

Well, thanks, Aiden, for the question. It is a massive tailwind for us. We have always been counter-positioned against this sort of legacy thin software that was built by and executes a playbook that is built around rent extraction and no outcome delivery. We, on the other hand, have been focused entirely on building software that is focused on alpha and not beta.

We are not trying to make you the same as every other person. We are trying to figure out what makes you different, how we express your business strategy through the software platforms and products we build. So that part is probably obvious—that counter-positioning—but the other counter-positioning is against AI slop. We are focused on enterprise autonomy, not on dazzling demos.

We have, in the ontology, the no-slop zone. The ontology is the body to the AI brains. You cannot actually interact with the enterprise or affect the world; your agents can go nowhere without ontology. And you are seeing that with our customers.

In government, we are the platform that you build applications and agents on. In the commercial world, people are replacing legacy software at a lightning-fast pace, as I mentioned in my remarks, and we see that even internally at Palantir Technologies Inc., where we have gotten rid of legacy software like CRM and built it very quickly on top of our platform to a user experience that our users love.

Can I just—almost every single highlighted example of AI that actually is producing results in the U.S. is actually Palantir Technologies Inc. by Palantir Technologies Inc. And one of the ways to pen test what we are saying is just dig into the examples of AI actually transforming an enterprise. Call the client. Talk to them.

I am not saying every single one is, but almost every single one is. And it is because the theory of how you do AI and the practice in the enterprise are just radically different. And they look the same to nontechnical people, but they do not look the same to practitioners—whether you are on the battlefield, or whether you are an insurance company, or whether you are a hospital, or whether you are a manufacturer—what they discover is the reality of doing this requires a platform like ontology, and currently executed on top of Foundry with FDEs. And currently, that combination is available from one company, and that is us.

Thank you. Please, please, test. Our next question is from Dan with Wedbush. Dan, please turn on your camera, and then you will receive a prompt to unmute your line.

Yeah. I mean, you said—yep, thank you. Well, great quarter yet again. My question is, how do we balance between going after government deals and then commercial deals?

Because, obviously, you are in a unique position, just like we saw with that deal this quarter. Can you just talk about that balance? Because, obviously, there is more demand than supply in terms of relative in terms of Palantir Technologies Inc. Thanks.

Yeah, and then I will give this to Ryan. The reality of how Palantir Technologies Inc. works is we always prioritize the U.S. warfighters over everything else. And when we believe or know—because of our proximity—that the U.S. warfighter is in danger, we put the whole company against it. And it is not always the way in which one should do this, but it is how we do it.

And we have done this from the beginning and we are doing it now. And so in the current context, we take opportunities that look the same from a business perspective, and we 100% prioritize this nation's security over any other variable. Now, that also, interestingly, gives us leverage, because we go to the government and we will—and one thing people do not believe is—we are like, look, this does not work the way you think. Or this kind of execution will not lead to success, and you are actually asking us to take money out of our pocket to do it, which we will do.

But we cannot sign up to do something that will not work, that will not advance the warfighter, that will not advance munitions, that will not help this country have better unit economics, while deprioritizing another client. By the way, we tell commercial clients this. I tell commercial clients this all the time. We are highly monogamous in the way we work.

We are not trying to make you into a commodity. The only thing we will put above you is U.S. national security. And we are more than willing to do this when it is unpopular or when it is popular. And if you look at the retention and the full alignment inside Palantir Technologies Inc., the benefit of this is we attract and retain people that understand there is a higher value than just running the business as a business.

That said, our biggest problem currently in the U.S.—and why I believe we have 100% growth in the U.S.—is that we just cannot meet demand. Again, the advantage here is we can go to commercial and government clients and say, look, this does not make sense. If you want slop, you can go here. If you want old-school software that actually does not work and probably will disappear, there are a lot of names.

If you want us, we need to do it in a way that will make sense. And that gives us a lot of leverage. But we are very upfront with people, just like with our customers and just like we are internally. And we are also doing this abroad.

One of the reasons why we are intolerant of software and AI or some kind of witchcraft dance you have in some parts of continental Europe is, we have no time for it. We literally have no time or energy for the waste-of-time machine. Probably, I should be on TV explaining to people why the models are actually only useful on a platform, why the use cases platform companies are talking about are actually in Palantir Technologies Inc., why the total cost and token reduction price is exactly what we predicted, why our clients actually are asking, can I have a cheaper model since they seem pretty similar?

But we also do not have a lot of time for that. Ryan, would you like to add to this?

What we are seeing across our customers, and what is driving the U.S. generally, is those that understand the load-bearing context. In order to apply AI in that context, you need to be able to deploy it with precision, without slop. You see the AIG CEO talking about the agentic underwriting and claims process being coordinated through the ontology. These are all really massive undertakings.

We are going deep with our customers, and we are having that level of impact. And that is what really is driving us.

Thank you. Next question is from Mariana with Bank of America. Mariana, please turn on your camera, and you will receive a prompt to unmute your line.

Afternoon, everyone. Hope you can hear me. I do not know if you are going to be able to see me, but I am going to start as a follow-up. I am going to do three questions today.

Number one, when AI started, you had some customers that wanted to do it their way. What is happening right now with the AI labs getting into enterprise? How many customers understand that value, or how many are the niche customers that understand it and are actually advancing faster? But you also have some that are still trying with just Anthropic, Gemini, OpenAI; they all have enterprise solutions now.

Alex, you mentioned talent. How easy or hard is it actually to get the right engineers to keep being able to incorporate all that to the outcomes that you are looking for? And the second one on defense, because it is where my heart is always: You got a good callout on Maven. In the presidential budget request, Maven is one of the two pillars for DoD C2, Titan is moving to production, and that is amazing news.

But this is an election year. How much of that growth depends on that budget being appropriated, and how much can actually keep growing if we were to see an extended continuing resolution?

The talent question—Palantir Technologies Inc. is famous for having the best talent over a very long period of time. Look, it is a super-competitive environment. The whole world wants to either work at Palantir Technologies Inc. or at a lab. The advantage that we have at Palantir Technologies Inc. is if you come here, you learn how to build something that is truly unique.

And quite frankly, if you want to leave Palantir Technologies Inc., you can have any job in the world. And so I think that talent race is going to continue. Being at Palantir Technologies Inc. is a very high-pressure, very unique environment where we need people who are willing to do things that are different than anyone else. And where, although nine-tenths of the world loves us, one-tenth of the world professionally hates us.

So someone on your social graph is definitely going to call you up and say, how can you do all this important work in or for the Department of War or other places—even though we have powered every administration basically since our existence, not at the scale, obviously. So that is an ongoing thing. I am pretty confident that we will continue to attract and retain some of the best talent in the world, and we are seeing a ramp-up in that. I am now personally sitting across recruiting.

I am particularly interested in neurodivergent people of all kinds—people who are neurodivergent enough that they get up, come to this country, and do important, valuable work. We see a lot of allies who have chosen to come to America and chosen to come to Palantir Technologies Inc. We like that. But it is an ongoing battle.

There really are a couple options in the world that make sense. Palantir Technologies Inc. is obviously one of them, and we are very, very unique. I would also say the more we produce these numbers and the more we have actual experience on the battlefield and in enterprise, one of the things we are going to do an increasingly frontal job of doing is: You can join this startup that probably is not going anywhere—everyone on the inside knows venture is kind of not doing well—or you could come to Palantir Technologies Inc. But it is an ongoing, everyday battle.

Everybody wants a Palantirian. When we started this, a couple of years ago, I was saying Palantir Technologies Inc. is the most important degree in the world. The problem for us is it is the most important degree in the world—and everyone knows it now. Thanks also because we got fair coverage and because, you know, I mean, we probably are, because of our domination here, somewhat undervalued.

But people know that we actually are changing the world, and we are probably somewhat undervalued. So it is a great place to go. On the defense side, I will leave it to Shyam to talk.

On the defense side, it has been a very active period. It is not just Maven and Titan. There is also the work that we are doing on production across major weapon systems for the department, and work around the Sputnik moment right now. So there is a lot going on that one should be pretty excited about.

The department is pulling as much of that into 2026 as possible. History would suggest, of course, we are going to be in a continuing resolution, because for most of the time since Palantir Technologies Inc. has existed, there has always been a CR. So there are certain things that are outside of our control, but I feel very good that the role we are playing—the stakes are very high. What we are providing is existential to moving the department forward, and we will realize that value.

On the AI lab side, the enterprise side here, I think one of the privileged positions we live in is at the limits of what the models can do. One of the challenges for the labs is that all they see are the limitless potential, as opposed to living at the edge of where it translates into economic value. You see that with attempts to build out deploy code—it is essentially, how do I take Palantir Technologies Inc. and try to replicate that. What we do is very unique based on how we have organized ourselves and the tension between FDE and product development.

We have these out-of-body experiences: there are at least two labs we can think about where they were talking to different customers that they are working with and how it has transformed X or Y—yeah, it did, in AIP. We did that.

I would just add to that point. The best thing that can happen to this company—and maybe this country—is, of course, they should go out and flirt with all this slop. Mostly they come home to Palantir Technologies Inc. They do not have to all come home to Palantir Technologies Inc.

We have limits. But go test it out. Go see how easy it is to make these things work. Great.

And then compare what you are delivering to what we have delivered. And you know what? We do not have to have all the market. We are at our limit doing 100% this year, which I am going to drive the company to.

And maybe we can do 100% next year in the U.S. That is all we can do. And they can just expose the market to their beautiful, shiny appearances. And we will just expose the market to how we will transform your enterprise.

That is how it is going to go down. And by the way, I am always telling people inside the company, everybody wants to be you. You just may not know it. They are all trying Duploico, Stoico, Disco.

It is because, at the end of the day, they need to have growth with profit. But you cannot have profit if you are not changing the dynamics of the partner you work with—meaning your customer. It is downstream from the value you create. That is how Palantir Technologies Inc. is.

We are very comfortable in that zone. Now, I do think we are going to end up with a different term for software. You cannot lump what we are doing into “software.” We are really providing infrastructure and installation of AI infrastructure. If your company is largely running around and offering steak dinners with something that someone can hack and rebuild in a week, yes, you are going to have a huge problem.

Business models that do not make sense are under huge pressure. And that is one of the reasons we are at the forefront—can you believe we are at the forefront of almost every discussion in the world? And it is simply because we are powering almost everything that works. Not everything—there are some other great companies out there.

Many of them are not well known, and we should help publicize them—but we are at the forefront. And that is what these numbers show. You do not have to believe us. Believe your non-lying eyes.

Thank you. Alex, as always, we have a lot of individual investors on the line. Is there anything you would like to say before we end the call?

Well, to individual investors and Palantirians who are also individual investors, being on the front line of important things is painful. You get yelled at occasionally. Many of the people yelling at you have no clue what they are saying. Some of the people do have a clue what they are saying and just disagree with the West being strong and more efficient and more moral and having better unit economics.

We value your support, and we value your defense of us. We are defending you every day, and that is in great part what drives these results. And we are having some fun doing it too, just so you know. And hopefully, you will have some fun.

Thank you for your support. And we will see you next quarter.

Thank you. That concludes Q&A for today's call.