帕兰泰尔PLTR

Good afternoon. I'm Ana Soro from Palantir's finance team, and I'd like to welcome you to our third quarter 2026 earnings call. We'll 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 fourth quarter and fiscal 2026 results, management's expectations for our future financial and operational performance, which does not constitute formal guidance unless indicated as such in the accompanying written materials, and other statements regarding our plans, prospects, expectations, goals, and aspirations. 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 Alex Karp, Chief Executive Officer, Shyam Sankar, Chief Technology Officer, Dave Glazer, Chief Financial Officer, and Ryan Taylor, Chief Revenue Officer and Chief Legal Officer. I'll now turn it over to Ryan to start the call.

Humanity is facing world historic crossroads in how it chooses to deal with AI, and through it all, our genre-defining technology has led the way, redefining the industry. We've been shaping the AI revolution from its start, and despite being only at the very beginning of the Sovereign AI revolution, we already see how it is transforming the size of the market. We achieved revenue growth of 96% year-over-year and 20% sequentially, the highest growth rates we've ever delivered as a public company. These results are the continued financial expression of the transformational impact we're delivering for our customers, which is also evident in the depth of our customer relationships. The third quarter average trailing 12-month revenue from our top 20 customers increased 76% year-over-year to $146 million per customer. Our U.S. business is in overdrive.

We brought in $1.9 billion in U.S. revenue, which grew 119% year-over-year and 23% sequentially, representing 84% of our total revenue. This is led by our U.S. commercial business, which grew 148% year-over-year and 29% sequentially, and surpassed our U.S. government business revenue in quarter for the first time. In U.S. commercial, the average trailing 12-month revenue per customer grew 88% year-over-year and 20% sequentially. The U.S. continues to be the epicenter of the AI revolution. I won't repeat what I said last quarter, because it has become self-evident in our unparalleled results. Two years ago, we led the way with our commoditized cognition thesis, and today, the market is only beginning to recognize the full force of Sovereign AI. It's pervasive in the conversations I'm having with customers and undeniable in the results they've shared.

The COO of Optum Serve highlighted, quote, "Sovereignty doesn't mean that we have to build everything ourselves. What it does mean, though, is protecting what differentiates us while retaining the ability to evolve, to adapt, and to scale our solutions as our customers' needs change, and they change often. It means knowing where the right partner can help us move faster." L3Harris noted that by fine-tuning open-source models on its own data, a sovereign model outperformed the frontier model it had been using in less than 48 hours and cut costs by 95% in preliminary results.

NVIDIA reported that by evaluating and post-training its open models, it was able to get its smallest, most efficient model to outperform its largest model by a large gap, and can now retrain that model on just a single GPU in a couple of hours, enabling them to retrain anytime they have data to improve the decision intelligence. They stated, quote, "We captured our alpha, and we trained it into a model. We couldn't have started this process until we built the workflows in Palantir." Our customers are choosing Palantir and our Sovereign AI to transform their organizations at a furious pace. An industrial materials company piloted a nearly $3 million engagement in Q2 2026 before converting to a $29 million ACV deal last quarter.

A global athletic company converted a $1.6 million pilot that began in Q1 2026 into an approximately $21 million ACV deal last quarter. A global home appliance company converted a $1 million pilot that began in Q2 2026 into a $3 million ACV deal within the same quarter, then expanded nearly fivefold to a $15 million ACV deal in Q3 across commercial, finance, and supply chain workflows. After an AgentCamp in Q2 2026, an apparel company signed a $2.5 million pilot, then last quarter, they converted to an $11.5 million ACV deal. These commitments are downstream of the measurable impact we're delivering with our customers. With Palantir Sovereign AI, McCarthy Building Companies will save 30,000 hours annually by using post-trained Nemotron to help turn complex project requirements into contract language that allocates risk and clearly defines subcontractor obligations.

Tampa General is deploying Sovereign AI to keep sensitive data and model processing local while enforcing its own risk and privacy standards for LLM traffic and supporting the granular controls Tampa General wants to define for itself. Using fine-tuned and post-trained Nemotron to achieve this outcome, together, we also improve model performance by 7% and reduce latency by 22x. Turning to our U.S. government business, revenue grew 96% year-over-year and 18% sequentially, demonstrating continued extraordinary impact across civil and defense, with Maven as our foundational work. In Q3, the Army awarded Palantir a prime agreement to produce eight TITAN systems. Last quarter, FAA highlighted the impact of our work together, stating, quote, "That shift from scattered data to an embedded Ontology is what changes the game.

This is a modernization in operational form, changing how safety work gets done," and noted that the work they can do now would require hundreds of analysts without Palantir. As I reflect on our results, I see the furious pace continuing unabated. I am invigorated unlike ever before by the ambition I am hearing from our customers and their demand for Sovereign AI, a revolution we should remember is barely one quarter old. As extraordinary as these results are, they are only the opening chapter of Sovereign AI. I will now turn it over to Shyam.

Thanks, Ryan. Palantir is obsessed with turning tokens into economic value. It is clear that the vast majority of economically valuable problems that LLMs can solve can be solved with intelligence at or below the frontier. So what is preventing this from happening? On one end, you have the model makers who cannot conceive of solving any problem except through model improvement, so they are not even trying. On the other end, you have the hard work of diffusion, which sounds passive, but is anything but. All the value comes from the elegant integration of AI, software, and humans. This requires not a harness for the model, but something closer to a harness for the enterprise, which is exactly what AIP is. Most profoundly, the conceit that the labs have wrong is the belief that the atomic unit of the enterprise is the individual knowledge worker. It is not.

The fundamental unit of the enterprise is the workflow. You can make any set of workers more productive and generate no actual ROI. For some things, like coding, the knowledge worker is the workflow, so there is perfect product-market fit. But for the vast majority of the enterprise, it is not. Given this, it is incredibly valuable that AIP implements enterprise workflows and is able to bring AI to it in a way that generates objective, quantifiable value. For example, page 209 of Anthropic's S-1 talks about AIG's automation of insurance underwriting processes for complex commercial lines of business. That entire workflow and the elegant application of AI, software, and humans runs in AIP and was implemented by Palantir and AIG. We are the diffusion layer, not just of choice, but of necessity. There is a clear pattern emerging amongst our customers who are most successful at getting value from AI.

They have enormous ambition. Their goal is not something lame like OPEX reduction, it is market domination. The opposite is true. Customers that struggle the most are narrowly focused on reducing cost. AI is a new type of intelligence. Simply trying to shoehorn it to replacing the human misses the moment completely. The error of conflating human and machine intelligence locks you into a poorly chosen goal, one that limits your ambition and still remains out of reach. Instead, we are attacking all the work the enterprise knows it should be doing, but historically lacked the economic resources or capabilities to take on. An agent swarm watching each patient in the ICU ward to help clinicians avoid potential signs of sepsis earlier and improve patient outcomes. An agent swarm per wellhead in the Permian Basin to maximize production. An agent swarm for every customer of our customer to drive growth.

This is not about doing the same thing cheaper. It is about defining the productive work that goes beyond yesterday's frontier and capturing and compounding the new economic value it creates, and doing so with Sovereign AI. The examples are everywhere now. It is clear that post-training on your specific operational data in Ontology enables better-than-frontier performance on weights you control, protecting your alpha. Yes, it is cheaper, but the dominant variable is that more use cases can actually get to the threshold of viability for machine intelligence to generate economic value when elegantly integrated into your enterprise. Our product investments in AIP to create a closed-loop model factory are making this easy and fast. The specific post-trained model is a commodity item.

The compounding value is in the post-training pipeline that is constantly fed from your operational exhaust, captured in the Ontology, that drives automated post-training runs, model checkpoints, evaluations, and deployment across yesterday's, today's, and tomorrow's open-weight ecosystem. Our new feature of auto research and continued investment in AIP Evolve push us closer and closer to an automated loop to build, deploy, and evaluate intelligence continuously against ROI. In AIP and Sovereign AI, the Pareto optimal frontier is no longer an unachievable academic aspiration. It is a simple function call, and one we can invoke automatically on your behalf. At a recent PACOM exercise, we deployed a 30 billion parameter post-train model into space, weight, power, cooling-constrained compute, ready for the disconnected fight, with superior task-specific performance than GPT-5.6 Sol, a 3 trillion parameter model. L3Harris realized 95% cost reduction with Sovereign AI.

McCarthy will save 30,000 hours a year on subcontractor drafting, achieving better than frontier performance for RFI classification and subcontractor drafting on a post-train Nemotron 4 billion parameter model, where again, the real value is the substantially greater number of demand events they can process now. Maven continues to deliver for the joint force, exceeding 100,000 users. Maven is now available to all of the services beyond just the combatant commands and many combat support agencies. We just concluded a Maven hackathon. 46 teams across the joint force participated. Many amazing projects were built by our 25,000-strong builder community. The winning two teams were both Army teams, one building an edge planning and simulation capability for force protection, and a second place, an incredible platform to analyze drone incursions to drive force protection insights.

We continue to feel demand for Maven down to the tactical edge in disconnected environments, ashore and afloat. We have seen incredible success with DORA, Disconnected Ontology Resilient Architecture, including in the Army's Jailbreak effort. DORA is an embedded compute device that brings Maven's capabilities to disconnected operations. Using AI FDE, service members can build read-write integrations with legacy sensors and effectors and bring them online in hours, entirely unassisted. With that, I'll turn it over to Dave.

Thanks, Shyam. We had an outstanding third quarter. We delivered our highest ever reported year-over-year revenue growth rate of 96% and our highest ever reported sequential revenue growth rate of 20%. Quarterly revenue crossed the $2 billion mark for the first time, and we surpassed additional billion-dollar milestones in commercial revenue, government revenue, and GAAP operating income. Revenue in our U.S. business accelerated yet again, growing 119% year-over-year and 23% sequentially. Our U.S. commercial business grew 148% year-over-year and accelerated to 29% growth sequentially, and our U.S. government business grew 96% year-over-year and 18% sequentially. Demand for our Sovereign AI offering is accelerating our U.S. commercial momentum, helping to make this our first-ever quarter that U.S. commercial revenue eclipsed U.S. government revenue, a critical milestone in the history of our company.

On top of this, we are raising our full-year U.S. commercial revenue guidance to an excess of $3.559 billion, representing a growth rate of at least 143%. We're also raising our full-year 2026 revenue guidance midpoint to $8.532 billion, representing 91% growth year-over-year, a nine-point increase over our full-year 2026 revenue guidance from last quarter. Turning to our global top-line results. Third-quarter revenue grew 96% year-over-year and 20% sequentially to $2.313 billion. Third-quarter U.S. revenue grew 119% year-over-year and 23% sequentially to $1.937 billion. Revenue from our largest customers continues to expand. Third-quarter trailing 12-month revenue from our top 20 customers increased 76% year-over-year to $146 million per customer. Now moving to our commercial segment. Third-quarter commercial revenue grew 113% year-over-year and 24% sequentially to $1.168 billion, crossing the billion-dollar mark for the first time.

We closed $1.652 billion in commercial TCV bookings in the third quarter, representing 17% growth year-over-year. Our AI platform continues to dominate the U.S. markets as the only real choice for operationalizing LLMs while still giving customers full control over the data, logic, actions, and security of their enterprise. Third-quarter U.S. commercial revenue grew 148% year-over-year and accelerated sequentially to 29% quarter-over-quarter, totaling $984 million. U.S. commercial revenue was $397 million in the third quarter of 2025, meaning it increased by $587 million in just one year. We closed $1.463 billion of U.S. commercial TCV bookings, representing growth of 11% year-over-year. Over the past 12 months, we closed $6.114 billion of U.S. commercial TCV bookings, a 62% increase from the prior 12 months, highlighting the accelerating demand for AI that creates real operational value while also moving power away from the labs and back into your enterprise.

Total remaining deal value in our U.S. commercial business grew 79% year-over-year and 4% sequentially. We believe Sovereign AI is the latest and largest tech revolution of our generation. We signed multiple eight-figure deals in the quarter that were shorter in duration than usual as customers rapidly adopted initial Sovereign AI capabilities in their enterprise. It is important to remember that the Sovereign AI revolution is only one quarter old. As we continue to deliver value with Sovereign AI, over time, we expect both the duration and size of these contracts to increase. Our U.S. commercial customer count grew to 686 customers, reflecting growth of 29% year-over-year and 5% sequentially. Third-quarter international commercial revenue grew 21% year-over-year and 1% sequentially to $184 million. Revenue from strategic commercial contracts was approximately $400,000 for the quarter, representing less than 0.02% of overall revenue.

We continue to expect revenue from these contracts to be less than $500,000 in the fourth quarter, and we anticipate no further revenue from these contracts beyond the fourth quarter of this year. Shifting to our government segment. Third quarter government revenue grew 81% year-over-year and 16% sequentially to $1.146 billion, crossing the billion-dollar mark for the first time. Third quarter U.S. government revenue grew 96% year-over-year and 18% sequentially to $953 million. This growth was driven by continued execution in existing programs and new awards reflecting the growing demand for our AI platform in government. Third quarter international government revenue grew 31% year-over-year and 6% sequentially to $192 million. We closed $2.918 billion of TCV bookings, up 6% year-over-year. Net dollar retention was 165%, an increase of 800 basis points from last quarter.

We ended the third quarter with $13.4 billion in total remaining deal value, an increase of 55% year-over-year and 2% sequentially, and $4.9 billion in remaining performance obligations, an increase of 88% year-over-year and flat sequentially. As a reminder, RPO is primarily comprised of our commercial business, as it does not take into account contracts with an initial term of less than 12 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 85% for the quarter. Adjusted income from operations, which excludes stock-based compensation expense and related employer payroll taxes, was $1.427 billion in the third quarter, representing adjusted operating margin of 62%.

Q3 adjusted expense was $887 million, up 20% sequentially and 53% year-over-year, primarily driven by the continued investment in our AI platform and technical hiring as we welcomed our latest class of new grad hires. We remain committed to investing in the most elite technical talent, as well as R&D for our product pipeline and Sovereign AI efforts, all while delivering on our goals of sustained GAAP profitability. Third quarter GAAP operating income was $1.085 billion, representing a 47% margin and surpassing the billion-dollar mark for the first time. Third quarter GAAP net income was $1.128 billion, representing a 49% margin. Net income has increased nearly eightfold over the last 24 months from $144 million in the third quarter of 2024. Third quarter stock-based compensation expense was $319 million, and equity-related employer payroll tax expense was $23 million. Third quarter GAAP earnings per share was $0.44.

Third quarter adjusted earnings per share was $0.44. Additionally, our combined revenue growth and adjusted operating margin accelerated to 158% in the third quarter, a three-point increase to our Rule of 40 score from the prior quarter, and our 13th consecutive quarter of an expanding Rule of 40 score. Turning to our cash flow. In the third quarter, we generated $1.205 billion in cash from operations and $1.216 billion in adjusted free cash flow, representing margins of 52% and 53%, respectively. We ended the quarter with $10.4 billion in cash equivalents, and U.S. Treasury securities. Now turning to our outlook. For Q4 2026, we expect revenue of between $2.649 billion and $2.653 billion, and adjusted income from operations of between $1.640 billion and $1.644 billion. For full year 2026, we are raising our revenue guidance to between $8.530 billion and $8.534 billion.

We are raising our U.S. commercial revenue guidance to an excess of $3.559 billion, representing a growth rate of at least 143%. We are raising our adjusted income from operations guidance to between $5.245 billion and $5.249 billion. We are raising our adjusted free cash flow guidance to between $4.8 billion and $5 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.

Welcome to our earnings call. I think for many, many years, our earnings calls were really about our earnings. Now it is the focal point of tech, society, and general trends. I think many, if not most people who are watching this, and it is by far the most watched earnings call in the world, it is the one where people come to figure out what is going on on the ground floor. Given that AI and Sovereign AI is changing the universe, in our case for tremendous good, and is showing up in our numbers, people really want to have a sense of, well, what is actually happening in the world politically, sociologically, anthropologically, and of course, financially.

Given that demand and interest in Palantir and the reality that this moment has become a real focal point of understanding, and quite frankly, many investors watching this are watching it to figure out what is going on with their investments, and not even primarily Palantir. There is this larger question of what does it mean to have a business that was built around what we believed and believe now is the most important mission in the world, supporting our war fighters, bringing them home, where even a year ago, two years ago, that people even involved inside Palantir viewed the core value of our business economically as Glazer would look at it. Quite frankly, in a very helpful way, he is the force of greed. Glazer's view of our business was, "Could you talk a little more about commercial?" Over the past couple years.

In this quarter, our commercial business eclipsed our government business. In fact, the market value of that probably justifies our current valuation, given our aggregate business growing at 96%. The juggernaut of U.S. commercial, I mean, these numbers are so far outside the bounds of what you could expect, I mean, outside the bounds of what even the most optimistic people could think a business like ours could do, while maintaining a way of going to market that is completely sui generis. We have products that are unique. We have ways of going to the market that are unique.

We were the leader of a revolution that was in front of us, but none of us really were able to put our name on, the sovereign revolution, meaning people need to understand how AI can create value, how you can create value out of tokens, how you can keep the value of your own alpha, how is it not transferred to anyone else, and how can you expand it? That revolution, of course, is happening in America. Then these out-of-bounds results, of which were a metaphor, really show you the future is becoming the present, and the present is now. You see it in Europe, which I spent half my life in. At this point, we should kind of avoid talking about it because of what's going on, and it doesn't help to just stamp on them. But you see it across America.

You see the reaction to AI. You see the polarization politically. It's because all the value in the market is actually moving to the vehicles, in this case, Palantir, and really very few others, Anthropic, OpenAI, us, others, that where you can actually make a claim that there is some value creation. Again, it's so extreme that a business that was viewed as a nice-to-have part of our business as late as 3 years ago is now the dominant part of our business. That business grew 29% quarter-on-quarter. It's almost at 150% growth, and it's dragging our U.S. growth number over 100%. These are just bombastic. We did this while attacking the market the way we attack it, very few salespeople, an impossible way to understand how we are capturing this juggernaut unless you view it as a completely new and different moment.

When people are watching this, they're like, "What is happening in the market? What is happening in our society?" It really is the case that the playbook, the products, the way of going to market do not work in most cases, but the things that do just spring alive. Our somewhat crazy aspiration to take the whole market doesn't look that crazy right now. We believe, at this company, and many of the people watching it, we do not only have a financial reason for taking the whole market, which Glazer is salivating at. We, on the mission side, we believe we have a mission reason for taking the market, and that mission reason is we support your alpha. We support your sovereignty. We've done this for over 20 years. We support the war fighter.

We are delighted that we can support the war fighter even more because we are making so much money. We believe we have a moral imperative to be the dominant player in our industry, broadly defined, including all AI applications and the use of model, open and closed, especially training open-weight models. That moral imperative drives every part of our business. The interesting thing about the internal dynamic of our business, it is not only that the sum of the parts in our business is stronger. That is obvious, 96% growth. Look at our Rule of 40. It is 158. It is almost like jaw-dropping. The parts of our business, the individual parts, the parts that the people at this company are running, those parts are stronger than they were before, every part. That is what you are seeing in these numbers.

Arguably, for most people watching that is what you are seeing in broader society. This move from the future to the present is the reason why many of the classical approaches to business, there was an idea they were going to fail in five years. That does not work. You have to execute now and in the present. This company, Palantir, and everyone involved, and all of the people watching this who are on our side, of which there are many, many people, are a part of that movement. That is why we are so really happy and honestly quite optimistic about the future, especially in the U.S.

Thanks, Alex. Our first question is from Dan with Yorkville Ives. Dan, please turn on your camera, and then you will receive a prompt to unmute your line.

Well, what's really shifted on the front line is, there used to be this long walk up to people talking to us, then you'd do a pilot, then you'd try to get a long pilot, then you kind of lock that in, because the same way you lock in, hire all these salespeople so that the market believes you're going to have sales kind of thing. Now, it's much more, it's super heterogeneous. Everybody basically comes in on the spectrum of, "What I have doesn't work now, and I've heard what you have does work." That's usually where it starts.

They also strongly believe and are quite tired of what they believe their reality is, "My IP is in danger, and I'm getting no value." This is, when we started talking about sovereignty, this was something that was being expressed, they felt, but they didn't know how to articulate. Now it's something they articulate, and they've gone from anger to action. It's like they've gone from thinking, "Hey, I'm not in a great marriage," to, "I'm at the divorce." They come, then what's very special now is they're surrounded by people who've had the same journey. The timeline from interaction to them buying pilots or going into production is completely shifted.

What Ryan and I are seeing on the front line in commercial is this much quicker interaction, much quicker to deployment, shorter duration of the contract, but then an ability to expand that contract dramatically. Because as soon as you go in there and you show them that you can, for example, train open-weight models in our Ontology, those models are valuable, and you have beyond Frontier capacity without losing the alpha, you just are hooked. What we have to do internally is figure out how to re-resource our company to focus exclusively on those people, because we don't have even the bandwidth to do that. That's because every single time we go into the conference, like in the past, we go into conference and people are like warm leads turn into hot leads. This is like first date into bed kind of thing.

Maybe that's not the right metaphor for this, but it's a very different jam. Put it this way, we've gone from being the most attractive person in the physics department to being the captain of the football team kind of thing. I mean, not that I did that, but this is like a completely different jam of what's going on. Then it's also different on our end because we know we can deliver on use cases no one else can deliver on. So, even today, we're going over use case after use case with one of the most important companies, and I'm going to go see them. Basically, it's like, instead of saying, "Hey, let's just get started. You have this crucial problem for your business. We know we can deliver on this in weeks.

This will change the trajectory of your business." In a weird way, it is much, much closer to what we were doing in the beginning in the U.S. government, where we were like, "Hey, we are just going to get started." We knew we could prove it with PG, but it is at a much more massive scale. Instead of being like 250K, it is like $25 million to start. Honestly, the general vibe is, if this actually works, it is worth infinite value, and it will work. Quite frankly, I do not see how other offerings are going to work, because this is both product and artistry. That is why these numbers are so bombastic. It is not like some static. When Shyam Sankar is on the front line doing implementations or Ryan Taylor is structuring these.

I mean, Ryan Taylor was so busy the last couple days of last quarter, he could not get out of his car. I was about to send over a bottle so he could take care of nature. It is like that on the front line. I am not exaggerating. Ryan Taylor was on his way to work and he had to pull over. He drives a fancy car. I mean, look at that. He literally had to pull over, and that is just what is going on. Again, I know the primary focus of your interest here is financial, but there is the flip side. The other stuff is not working. It is not just that our thing is unique. There is a very strong sense in the market that these other approaches, fake deploy codes, token, raw usage, lightweight companies reselling tokens, software companies that are reselling tokens and it counts as revenue.

People are just tired of it. I will tell you, last not least, the taste of the market is shifting. People really do grow to like what works. I mean, look at the success in the Department of War. We shifted the taste. That is what is happening in U.S. Comm. That is what is explaining the numbers. That is what, if you like people watching this, you should come to one of our AIP Sovereignty Bootcamps. It is a little bit like a rock concert.

Thank you. Our next question is from Gil with D.A. Davidson. Gil, please turn on your camera, and then you will receive a prompt to unmute your line.

There is two parts to your question, which is the person who is not convinced or not yet convinced, and then what do we do? The weird thing here, though, is we really cannot satiate demand. This is a market that is growing so rapidly. We do not need the people who are not convinced. We really do not. By the way, and again, I say this every time, Dario is someone I get along very well with. I think he is one of the most important business people of my generation, if not multiple generations. They are also selling our product because people interact with them, and again, some people want that approach. A lot of people are super concerned about their alpha being transferred to them, and the results, even the results they talk about, are often already in our application layer.

We work very effectively with Anthropic and the Department of War and at AIG and all over the place. What they are doing is increasing the size of the market. What we are doing is servicing the market that has gotten real. We are actually in a symbiotic relationship with them commercially, because they are growing a market that is probably much, much bigger than it is today, and we are taking advantage of the market where you really need delivery, where delivery also includes. Now, if there is somebody We really do convincing in the government space. We have been on the front line. Certain agencies did not want to adopt, and we knew the war fighters would die if they did not adopt, so we went to convince them.

In commercial, our real approach is, "Hey, enjoy the one you are with till you find out it is not the one you want." There are very, very, very few times where we are trying to go and compete and take their customer away. It really is not happening. Conversely, once you go Palantir, you do not go back. That is how it is. You can see it in our numbers, which is This is a very different thing. I do not know at what point we become competitive with each other, but at this point in the U.S., the market for us is insatiable. It is insatiable and growing and growing and growing. There is two ways to look at our numbers. One is to say we are just sublime at what we do. Another way is to say we are very unique and the market is exploding around us.

I'm much more in the latter camp. We are a creative colony. We're not perfect. But the market is exploding around us, and they are helping it explode. The only area where we do anything that looks competitive is we are spending a lot of time educating clients, partners, that are non-partners, around the risks of using closed models without an application layer. That's the one thing we do actively. But we're not really saying, "Hey, you're going to" The value creation, people know we own. Certainly in industry. I think less on Wall Street, actually. Honestly, I think on Wall Street, I don't mean you, but I think really what happened on Wall Street is everybody invested in these firms early. Bless you guys. It's hard to see the reality when you're getting rich on something that's not actually working the way you think it is.

The reality is, though, in industry, people realize when it gets real, you need us. That market is much larger than we can service.

Thank you. Our last question is from Brad with Deutsche Bank. Brad, please turn on your camera, and then you'll receive a prompt to unmute your line.

Well, I will let Shyam talk about this. I will go back to the beginning of Palantir, PG. We built products that would protect civil liberties and stop terrorism for the very simple reason that you do not want to do one or the other. If you do not stop terrorism, you are going to get a radical fringe on the right. If you stop terrorism without rights, none of us want that. Our products are built to avoid war, meaning the adversary knows that they will have such pain inflicted upon them that, in fact, it is not worth going to war, and also to create social cohesion because we are going to bring back our troops healthier, safer, non-damaged, and that makes our society much more effective.

I would say as a person, not as Palantir, I grew up as a lefty. I do not actually like war. I want to avoid war. I do not support wars. Sometimes they are necessary. When they are necessary, America and its allies need the very, very, very best tools. We have competitors, adversaries, and enemies out there. They need to know our stuff works. The way to stop a war is for them to know these things work. Also, part of the problem that we have had in the AI discussion in this country is we do have a rival, an adversary on the battlefield. I happen to respect their culture quite a bit, China, but it is us or them. They have a dynamic, interesting, super high IQ scaled culture that is doing exceedingly well at AI.

We have got to make sure we are the leaders, and somehow we have to drag our European and other allies with us, which is going to be hard because they are going to have to also learn how these things work, and that probably means a real interaction with the leader of the sovereign movement, not some fake bureaucratic thing made up by people who have no idea what they are talking about and think you can regulate these things like a telecom industry, when in fact this is galvanizing a new transformative technology that is transforming every part of society and transforming our numbers and everything it touches.

Thank you. Alex, as always, we have a lot of individual investors online.

Somebody else has got to talk.

Is there anything anyone would like to say before I end the call?

You guys can say a couple words. Shyam, would you like to say?

Well, you spoke about deterrence really well. I guess I would just add that, of course, the objective is to deter conflict. Deterrence is not something you accomplish by hope. You actually have to build it brick by brick. And so on one end, in the foxhole, that's about having a capability that's 10 times, 100 times better than your adversary. Should they choose to fight, they're going to lose, and therefore they should not choose to fight. On the other end, it comes down to the factory floor. Deterring conflict, as we've seen with Russia and Ukraine, is really about your ability to produce the materiel. We are in a period where we need to reinvent how we do production. We've gone through 30, 40 years of essentially de-industrialization in the nation, beyond just our defense industrial base.

The work that we're doing with War Machine and working with commercial and private and public sector companies in order to enable production using a modern American manufacturing stack, these are two parts of the same coin here. I think it comes down to, yes, freedom driven through the foxhole, but also prosperity, the growth of the American economy on the back of that.

You want to say something? Would you like to talk about your greed afterwards?

I'll just add, the Sovereign AI revolution, we launched this last quarter, and the felt version on the ground is, and what we're seeing at Sovereign AI Bootcamps when we actually show and don't tell, is the momentum and the urgency of customers that get it and see it, adopting quickly, moving quickly, moving with urgency because they realize how much it matters. We're feeling that on the ground, and we're at the very beginning of this, and we only see that continuing and expanding from here.

Because I can't help myself, I'll say one more thing, going back to Gil's question. I mentioned this earlier in my comments, but it really is the case that I think one of the conceits that the labs don't have right, and that perhaps the customers who don't quite yet realize that the return is not there, is that the atomic unit of the enterprise is not the knowledge worker. You can make people more productive and generate no actual return on investment. If you're measuring the inputs, it can feel really good to see that productivity of the person. The atomic unit is the workflow.

Having a platform like AIP where you are already managing your supply chain or your S&OP or your key enterprise processes, the exhaust of those processes then enable you to go through the post-training loop, to have a model that is better than Frontier at that. We give you the tools to elegantly integrate your people, your AI, and the software to actually drive objective, quantifiable value against the workflow. This is the compounding loop that the customers who are coming to us in the Sovereignty Bootcamps really understand. Just at our most recent DevCon down in Miami, we had a customer who, on their stack in production as a hack week project, built a production-ready model that is better than Frontier for their use case in the 48 hours, single person, in the 48 hours that was DevCon. The proof is everywhere on this.

I guess to add two financial metrics to leave you with, I would say two years ago, on net income and to today, we have 8x our net income over the last two years, which I am incredibly proud of, as well as everything else that was said. Also, as we look at this year, to basically guide to almost $5 billion in cash flow for the full year is, I think, something we all can be excited about.

To close, the people who invested in us early, many of them were investing their own money and would otherwise be called retail, and many now and recently have reinvested in us. The Sovereign revolution is a metaphor for your interaction with Palantir, and the fact that we have been able to help you and you have been able to help us in your own wealth creation and in our journey, and that you have defended us against what obviously now look like ridiculously stupid and malicious, incredibly hard to understand attacks, is something that we will never forget. Part of the delivery here, part of what motivates me, is helping to make sure we are fighting for you, and quite frankly, making sure that the people that made fun of you and made fun of us are suffering.

I am very proud of that, and I am very proud to have all of you along with us, and thank you for that support.

Thank you. That concludes today's call.