Palantir Technologies Inc. Q2 FY2025 earnings call

• U.S. business is the engine of transformation, with U.S. commercial leading growth at 93% Y/Y and U.S. government at 53% Y/Y.
• Recorded highest TCV ($2.3 billion) and ACV ($684 million) ever, with 157 deals worth $1M or more, including 66 deals worth $5M+ and 42 deals worth $10M+.
• Existing customers showing strong expansions; top 20 customers average $75M in trailing 12-month revenue, up 30% Y/Y.
• Emphasizes ontology and AIP as key differentiators, enabling AI production impact; AIP is being re-platformed by software companies for faster value realization.
• Investments in AI FDE, Warp Speed (modern manufacturing OS), and Maven Smart System delivering value to frontline workers and various industries like healthcare and automotive.

U.S. Business: Overall U.S. business revenue grew 68% year-over-year and 17% sequentially, representing 73% of total company revenue. U.S. commercial led with 93% year-over-year revenue growth, outpacing U.S. government revenue growth of 53% year-over-year. Commercial Segment: Second quarter commercial revenue grew 47% year-over-year and 14% sequentially to $451 million. U.S. commercial revenue grew 93% year-over-year and 20% sequentially to $306 million; international commercial revenue declined ³% year-over-year but grew 2% sequentially to $144 million. Government Segment: Second quarter government revenue grew 49% year-over-year and 14% sequentially to $553 million. U.S. government revenue grew 53% year-over-year and 14% sequentially to $426 million; international government revenue grew 37% year-over-year and 11% sequentially to $127 million.

• Q3 2025 revenue guided to $₁.083 billion - $₁.087 billion, adjusted income from operations $4⁹³ million - $4⁹⁷ million.
• Full-year ²⁰²⁵ revenue guidance raised to $₄.142 billion - $₄.150 billion; U.S. commercial revenue guidance raised to over $₁.302 billion (at least +85% growth).
• Adjusted income from operations guidance raised to $₁.912 billion - $₁.⁹²⁰ billion; adjusted free cash flow guidance raised to $₁.8 billion - $₂ billion.

Q: Beyond just using LLM, how is Palantir making AI more useful for frontline workers and decision makers, not just data scientists?

A: Shyam Sankar mentioned AI is giving American workers superpowers, like nurses having more time with patients and factory workers solving more problems. Palantir is creating the American tech fellowship to empower blue-collar workers to build AI applications changing their businesses.

Q: Can you hit on the approach to sales given massive success with no direct sales force?

A: Alex Karp stated Palantir is downstream from the value created, with current customers advocating for them. The primary sales force is current customers telling others, and the company starts with high credibility as people trust the value delivered. Ryan Taylor added that customer leadership is coming to them earlier to roll out AI across the enterprise.

Q: Thoughts on the White House AI action plan and talent acquisition?

A: Shyam Sankar said the AI action plan is exciting as it encourages empirical AI implementation. On talent, giving people access to impactful problems is key. Alex Karp emphasized Palantir offers unique agency and re-credentials employees based on their work at the company, making it attractive for top talent.