Q3 2025 Palantir Technologies Inc Earnings Call

Good afternoon, I'm honest thorough from Powershares finance team and I'd like to welcome you to our third quarter 2025 earnings call, we'll be discussing the results announced in our press release issued after the market close 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 2025 results and <unk> expectations for future financial and operational performance and other statements regarding our plans prospects and expectations.

Speaker #1: Good afternoon. I'm Ana Soro from Palantir's finance team, and I'd like to welcome you to our third quarter 2025 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.

Speaker #1: 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 2025 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.

Permission 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.

Speaker #1: 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.

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 <unk>.

Speaker #1: 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.

Speaker #1: These non-GAAP financial measures should be considered in addition to not as a substitute for or an 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.

Release, Investor presentation, and other earnings materials are available on our Investor Relations website at investors <unk> 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.

Speaker #1: 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.

Joining me on today's call are Alex Karp, Chief Executive Officer, Sean Thank our Chief Technology Officer, Dave Glaser, Chief Financial Officer, Brian Taylor, Chief revenue Officer, and Chief Legal Officer.

Speaker #1: 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, David 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.

We had a monumental third quarter shattering expectations, yet again.

Our overall revenue grew 63% year over year at 18% sequentially, we outperformed across the board driven by strong execution in the U S, which accounted for three fourths of our business in Q3 growing 77% year over year and 20% sequentially.

Speaker #1: I'll now turn it over to Ryan to start the call.

Speaker #2: We had a monumental third quarter, shattering expectations yet again. Our overall revenue grew 63% year-over-year and 18% sequentially. We outperformed across the board, driven by strong execution in the US, which accounted for 3/4 of our business in Q3, growing 77% year-over-year and 20% sequentially.

Our rule of 40 score soared to an unprecedented $1 14 up 46 points year over year and a full 20 points since last quarter alone reinforcing our position as the defining enterprise software company of our generation.

Our U S commercial business grew an incredible 121% year over year, and 29% sequentially driven both by insatiable demand and the quantified exceptionalism compelling customers to scale AIP across their operations.

Speaker #2: Our rule of 40 score soared to an unprecedented 114, up 46 points year-over-year and a full 20 points since last quarter alone. Reinforcing our position as the defining enterprise software company of our generation.

Organizations are embracing an undeniable truth real enterprise AI at scale requires pelletier, we're seeing that AIP again, and again is the only platform delivering transformational impact in this market and critically AIP is the only AI platform that is an actual plan.

Speaker #2: Our US commercial business grew an incredible 121% year-over-year and 29% sequentially, driven both by insatiable demand and the quantified exceptionalism compelling customers to scale AIP across their operations.

Speaker #2: Organizations are embracing an undeniable truth: real enterprise AI at scale requires Palantir. We're seeing that AIP again and again is the only platform delivering transformational impact in this market.

For compounding your enterprises AI leverage not just the model makers leverage over you.

Sharing this leverage with our customers is our highest priority our whole company is singularly focused around value creation for our customers and I'm proud to share with you all the fruits of our labor.

Speaker #2: And critically, AIP is the only AI platform that has an actual plan for compounding your enterprise's AI leverage, not just the model maker's leverage over you.

We closed our highest <unk> quarter ever at $2 $8 billion.

Speaker #2: Sharing this leverage with our customers is our highest priority. Our whole company is singularly focused around value creation for our customers. And I'm proud to share with you all the fruits of our labor.

Underlying this performance we closed a staggering 204 deals worth $1 million or more of which 91 deals were with $5 million or more and 53 deals were worth $10 million or more.

Speaker #2: We closed our highest TCV quarter ever at $2.8 billion. Underlying this performance, we closed a staggering $204 deals worth $1 million or more of which $91 deals were worth $5 million or more and $53 deals were worth $10 million or more.

In our U S commercial business, which now accounts for 34% of our overall revenue.

One $3 billion in PCV, a milestone achievement for the fastest growing area of our business with a more than <unk> year over year growth rate on a dollar weighted duration basis.

Speaker #2: In our US commercial business, which now accounts for 34% of our overall revenue, we closed $1.3 billion in TCV, a milestone achievement for the fastest-growing area of our business, with a more than 6x year-over-year growth rate on a dollar-weighted duration basis.

The trajectory is clear customers are converting to larger enterprise agreements in short timeframes, reflecting both the expanded scope of their AI ambitions and the immediate impact our software delivers.

A leading medical device manufacturer signed a multi year expansion just five months after their initial contract increasing HCV more than eightfold.

Speaker #2: The trajectory is clear: customers are converting to larger enterprise agreements in short timeframes, reflecting both the expanding scope of their AI ambitions and the immediate impact our software delivers.

Two weeks into their initial contract the conversation evolved from a single use case to pursuing the opportunity of becoming an AI first enterprise.

Speaker #2: A leading medical device manufacturer, signed a multi-year expansion just five months after their initial contract, increasing ACV more than eightfold. Two weeks into their initial contract, the conversation evolved from a single use case to pursuing the opportunity of becoming an AI-first enterprise.

Their CEO approach to me to embrace a shared vision for an enterprise wide AIP deployment to transform their entire organization.

This transformation reflects a broader pattern, we're seeing across our customer base.

AI is a strategic imperative owed at the C suite level with executive leadership, recognizing the enterprise wide AI adoption is the defining factor separating the AI haves and have nots.

Speaker #2: Their CEO approached me to embrace a shared vision for an enterprise-wide AIP deployment to transform their entire organization. This transformation reflects a broader pattern we're seeing across our customer base.

We're seeing C suite, driven AI transformations across our customers.

Speaker #2: AI is a strategic imperative owned at the C-suite level, with executive leadership recognizing the enterprise-wide AI adoption is the defining factor separating the AI haves and the AI have-nots.

At a leading insurance company. The CEO has taken personal ownership of their AI transformation meeting with our team regularly to orchestrate a companywide transformation around AIP re imagining every function from underwriting to claims processing, leading to a significant expansion of our work together.

Speaker #2: We're seeing C-suite-driven AI transformations across our customers. At a leading insurance company, the CEO has taken personal ownership of their AI transformation, meeting with our team regularly to orchestrate a company-wide transformation around AIP.

Our partnership with TWD Global named Virgin start AI continues to gain momentum S. T. Wg's Thomas tool noted quote what was once a competitive advantage is now a competitive necessity.

Speaker #2: Reimagining every function, from underwriting to claims processing, leading to a significant expansion of our work together. Our partnership with TWG Global named Vergence.AI continues to gain momentum, as TWG's Thomas Toll noted, "What was once a competitive advantage is now a competitive necessity." Companies that fail to incorporate AI into their core operations will be outpaced by those that do.

<unk> that failed to incorporate AI into their core operations will be outpaced by those that do.

These examples underscore what we are seeing we are the only platform, bringing true transformational impact to the enterprise AI market.

Turning to our U S government business revenue grew 52% year over year, and 14% sequentially as we continued to deliver mission critical capabilities.

Speaker #2: These examples underscore what we are seeing: we are the only platform bringing true transformational impact to the enterprise AI market. Turning to our US government business, revenue grew 52% year-over-year and 14% sequentially, as we continue to deliver mission-critical capabilities.

We remain deeply committed to our founding mission of supporting the U S government honored by the privilege of equipping our nation with transformative software that actually works.

We remain focused on delivering the most advanced defense capabilities in the world to the U S government and internationally to our Allied partners around the world.

Speaker #2: We remain deeply committed to our founding mission of supporting the US government, honored by the privilege of equipping our nation with transformative software that actually works.

The momentum we're carrying into Q4 is extraordinary as.

As we look towards the end of the year our mission is clear.

Speaker #2: We remain focused on delivering the most advanced defense capabilities in the world to the US government, and internationally to our allied partners around the world.

Deliver the production capabilities that turn AI from promise into performance for the enterprises defining the future of their industries through Aip's compounding AIG leverage.

Speaker #2: The momentum we're carrying into Q4 is extraordinary. As we look towards the end of the year, our mission is clear: deliver the production capabilities that turn AI from promise into performance for the enterprises defining the future of their industries through AIP's compounding AI leverage.

I'll now turn it over to Sean.

Thanks Ryan.

90 years of grinding has built a unique moat and a growing lead our products were built for this moment and the numbers continue to show it.

Realizing value from AI and the enterprise requires the elegant integration of LMS workflow and software and this is only possible with ontology.

Speaker #2: I'll now turn it over to Shyam.

Speaker #1: Thanks, Ryan. Twenty years of grinding have built a unique moat and a growing lead. Our products were built for this moment, and the numbers continue to show it.

Our foundational investments in ontology and infrastructure have positioned us to uniquely deliver on AI demand now and in the World ahead.

Speaker #1: Realizing value from AI in the enterprise requires the elegant integration of LLMs, workflow, and software. This is only possible with ontology. Our foundational investments in ontology and infrastructure have positioned us to uniquely deliver on AI demand now and in the world ahead.

The most significant product developments are the accelerating progress in our AI applications inside of AIP.

AI FTE or AIP native development agent that understands how to connected data sources, how to integrate and transform data how to create ontologies and functions and build applications, it's unleashing incredible speed and productivity for our ftes and customer developers alike.

Speaker #1: The most significant product developments are the accelerating progress in our AI applications inside of AIP. AI FDE, our AIP-native development agent that understands how to connect to data sources, how to integrate and transform data, how to create ontologies and functions and build applications, its unleashing incredible speed and productivity for our FDEs and customer developers alike.

At one customer to human in Ftes spawned an army of AI ftes to migrate a customer off their legacy data warehouse in five days something that would have taken an army of S size up to two years. This is not a prototype this is production.

Speaker #1: At one customer, two human FDEs spawned an army of AI FDEs to migrate a customer off their legacy data warehouse in five days. Something that would have taken an army of SIs up to two years.

Across our customers the results of our shocking.

AI high mind, as a new AIP capability that orchestrates, a swarm of dynamically generated agents to tackle hard problem solving idea generation refinement and executable proposal generation that is integrated with ontology and therefore aware of the context of your enterprise AI High mine was originally developed to solve extremely comp.

Speaker #1: This is not a prototype. This is production. Across our customers, the results are shocking. AI Hivemind is a new AIP capability that orchestrates a swarm of dynamically generated agents to tackle hard problem-solving, idea generation and refinement, and executable proposal generation that is integrated with ontology and therefore aware of the context of your enterprise.

Ana Soro: Good afternoon. I'm Ana Soro from Palantir's Finance team, and I'd like to welcome you to our Q3 2025 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 Q4 and fiscal 2025 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.

<unk> problems in the classified space, but it's already been used to help our commercial customers identify bottlenecks in the supply chain proactively developing possible solutions and then leveraging AI FTE to code that up into an actual solution.

Speaker #1: AI Hivemind was originally developed to solve extremely complex problems in the classified space, but it's already been used to help our commercial customers identify bottlenecks in their supply chain, proactively developing possible solutions, and then leveraging AI FDE to code that up into an actual solution.

In the government space, a high mind is able to take its proposals and generate integrated mission plants, right and Gaia and Maverick.

Our focus with AIP continues to be enterprise autonomy, our normative view of where the value is for AI in the enterprise <unk> now lets the AI develop novel solutions to emerging challenges and to identify hidden opportunities.

Speaker #1: In the government space, AI Hivemind is able to take its proposals and generate intricate mission plans right in Gaia and Maverick. Our focus with AIP continues to be enterprise autonomy.

And the rest of AIP enables you to turn those ideas into an implemented reality.

Speaker #1: Our normative view of where the value is for AI in the enterprise. Hivemind now lets the AI develop novel solutions to emergent challenges and to identify hidden opportunities.

Closed loop evolution of the business with AI possible because of AIP and oncology.

Ana Soro: 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.

We continue to make investments that allow enterprises to extend AIP to be far edge.

Speaker #1: And the rest of AIP enables you to turn those ideas into an implemented reality. Closed-loop evolution of the business with AI possible because of AIP and ontology.

Edge ontologies, a new lightweight implementation of ontology that runs on mobile devices. It enables customers to build mobile applications or embedded software for hardware things like drones and robots and is fully integrated with your enterprises AIP instance.

Speaker #1: We continue to make investments that allow enterprises to extend AIP to the far edge. Edge ontology is a new lightweight implementation of ontology that runs on mobile devices and enables customers to build mobile applications or embedded software for hardware, things like drones and robots, and is fully integrated with your enterprise's AIP instance.

Turning to field facing updates the U S Army issued an official public memo directing all army organizations to consolidate and centralize on vantage the army data platform built on foundry and AIP.

The army views this not merely as a technical decision, but a cultural decision, enabling the data driven decision, making but it continues to make our army the most lethal in the world.

Speaker #1: Turning to field-facing updates, the US Army issued an official public memo directing all Army organizations to consolidate and centralize on Vantage, the Army data platform built on Foundry and AIP.

This directive will enable the army to rapidly sunset legacy systems and enable more investment in the Army's future force concept and systems.

Speaker #1: The Army views this not merely as a technical decision, but a cultural decision enabling the data-driven decision-making that continues to make our Army the most lethal in the world.

Ryan Taylor: We had a monumental Q3, shattering expectations yet again. Our overall revenue grew 63% year-over-year and 18% sequentially. We outperformed across the board, driven by strong execution in the US, which accounted for 3/4 of our business in Q3, growing 77% year-over-year and 20% sequentially. Our Rule of 40 score soared to an unprecedented 114, up 46 points year-over-year and a full 20 points since last quarter alone, reinforcing our position as the defining enterprise software company of our generation. Our US commercial business grew an incredible 121% year-over-year and 29% sequentially, driven both by insatiable demand and the quantified exceptionalism compelling customers to scale AIP across their operations. Organizations are embracing an undeniable truth: real enterprise AI at scale requires Palantir. We're seeing that AIP, again and again, is the only platform delivering transformational impact in this market.

The speed and the American Tech Fellowship, our early investments to support manufacturing and Reindustrialization in America are bearing fruit.

Speaker #1: This directive will enable the Army to rapidly sunset legacy systems and enable more investment in the Army's future force concept and systems. Warp Speed and the American Tech Fellowship are early investments to support manufacturing and reindustrialization in America are bearing fruit.

While works needed launched by helping new defense entrants meet their searching production goals, it's now being rapidly adopted across the traditional defense industrial base and the maritime industrial base.

The second cohort of the American Tech belt, it will be wrapping up in the next few weeks, we started the American textile issue because we noticed that many of our best builders were frontline workers. They don't come from conventional consulting backgrounds, who don't have a formal computer science background.

Speaker #1: While Warp Speed launched by helping new defense entrants meet their surging production goals, it's now being rapidly adopted across the traditional defense industrial base and the maritime industrial base.

To highlight a few of these folks Mason, a Louisiana based civil Engineers building AI applications for more accurate estimates for heavy construction projects something that is only going to grow with our Reindustrialization, Michael who works for our potato farm in North Dakota is streamlining its operations and Cody from Georgia, who is the utilities expert is building in foundry to deliver.

Speaker #1: The second cohort of the American Tech Fellowship will be wrapping up in the next few weeks. We started the American Tech Fellowship because we noticed that many of our best builders were frontline workers.

Speaker #1: They don't come from conventional consulting backgrounds. They don't have formal computer science backgrounds. To highlight a few of these folks, Mason, a Louisiana-based civil engineer, is building AI applications for more accurate estimates for heavy construction projects, something that is only going to grow with our reindustrialization.

Safe reliable energy across the south.

These Americans are the true face of innovation underscoring that it will be the American worker with AI that drives reindustrialization in American prosperity.

Speaker #1: Michael, who works for a potato farm in North Dakota, is streamlining its operations. And Cody from Georgia, who is a utilities expert, is building in Foundry to deliver safe, reliable energy across the South.

Ryan Taylor: Critically, AIP is the only AI platform that has an actual plan for compounding your enterprise's AI leverage, not just the model maker's leverage over you. Sharing this leverage with our customers is our highest priority. Our whole company is singularly focused around value creation for our customers, and I'm proud to share with you all the fruits of our labor. We closed our highest TCV quarter ever at $2.8 billion. Underlying this performance, we closed a staggering 204 deals worth $1 million or more, of which 91 deals were worth $5 million or more, and 53 deals were worth $10 million or more. In our US commercial business, which now accounts for 34% of our overall revenue, we closed $1.3 billion in TCV, a milestone achievement for the fastest-growing area of our business, with a more than 6x year-over-year growth rate on a dollar-weighted duration basis.

Our customers have taken notice and asked us to create American textile ship programs for their employees specifically to include Lear, who highlighted their fellowship in their recent earnings call.

Speaker #1: These Americans are the true face of innovation, underscoring that it will be the American worker with AI that drives reindustrialization and American prosperity. Our customers have taken notice, and asked us to create American Tech Fellowship programs for their employees specifically, to include Lear, who highlighted their fellowship in their recent earnings call.

With that I'll turn it over to Dave to take us through the numbers.

Thanks, Sean.

We announced standing third quarter, achieving a rule of 40 score of 114, our highest ever by 20 points.

We also generated our highest ever reported revenue growth rate of 63% year over year exceeding the high end of our prior guidance by 300 basis points and representing a 3300 basis point increase compared to the growth rate in Q3 last year.

Speaker #1: With that, I'll turn it over to Dave to take us through the numbers.

Speaker #2: Thanks, Shyam. We announced standing third quarter, achieving a rule of 40 score of 114, our highest ever by 20 points. We also generated our highest ever reported revenue growth rate of 63% year over year, exceeding the high end of our prior guidance by 1,300 basis points and representing a 3,300 basis point increase compared to the growth rate in Q3 of last year.

On the back of this extraordinary strength, we are guiding to revenue of 1.329 billion in the fourth quarter, representing 13% growth quarter over quarter, our highest ever sequential revenue growth guide and 61% growth year over year.

Speaker #2: On the back of this extraordinary strength, we are guiding to revenue of $1.329 billion in the fourth quarter, representing 13% growth quarter over quarter, our highest ever sequential revenue growth guide, and 61% growth year over year.

We're also raising our full year 2025 revenue guidance midpoint, Q4, 0.39, 8 billion, representing a 53% year over year growth rate and eight point or $252 million increase over our full year 2025 revenue guidance last quarter.

Ryan Taylor: The trajectory is clear. Customers are converting to larger enterprise agreements in short time frames, reflecting both the expanding scope of their AI ambitions and the immediate impact our software delivers. A leading medical device manufacturer signed a multi-year expansion just five months after their initial contract, increasing ACV more than eightfold. Two weeks into their initial contract, the conversation evolved from a single use case to pursuing the opportunity of becoming an AI-first enterprise. Their CEO approached me to embrace a shared vision for an enterprise-wide AIP deployment to transform their entire organization. This transformation reflects a broader pattern we're seeing across our customer base. AI is a strategic imperative owned at the C-suite level, with executive leadership recognizing that enterprise-wide AI adoption is the defining factor separating the AI haves and the AI have-nots. We're seeing C-suite-driven AI transformations across our customers.

Speaker #2: We're also raising our full year 2025 revenue guidance midpoint to $4.398 billion, representing a 53% year over year growth rate, and $8.4252 million increase over our full year 2025 revenue guidance last quarter.

<unk>, we're raising our full year U S commercial revenue guidance to in excess of 143 3 billion, representing a growth rate of at least 104% year over year, a 19 point increase over the guidance, we gave just last quarter.

Speaker #2: In addition, we're raising our full year US commercial revenue guidance to an excess of $1.433 billion, representing a growth rate of at least 104% year over year, a 19-point increase over the guidance we gave just last quarter.

Accelerating demand for AIP continues to drive the outperformance in our U S business overall, which grew 77% year over year and 20% sequentially in the third quarter our.

Our U S commercial business grew 121% year over year, and 29% sequentially and our U S government business grew 52% year over year and 14% sequentially.

Speaker #2: Accelerating demand for AIP continues to drive the outperformance in our US business overall, which grew 77% year over year and 20% sequentially in the third quarter.

We delivered these exceptional topline results, while also achieving our highest ever reported adjusted operating margin of 51% exceeding the high end of our prior guidance by 500 basis points and highlighting the unit economics of our business at scale.

Speaker #2: Our US commercial business grew 121% year over year and 29% sequentially, and our US government business grew 52% year over year and 14% sequentially.

Our revenue and profitability drove a 20 point sequential increase to our rule of 40 score from 94 in the second quarter to 114 in the third quarter.

Speaker #2: We delivered these exceptional top-line results while also achieving our highest ever reported adjusted operating margin of 51%, exceeding the high end of our prior guidance by 500 basis points and highlighting the unit economics of our business at scale.

Ryan Taylor: At a leading insurance company, the CEO has taken personal ownership of their AI transformation, meeting with our team regularly to orchestrate a company-wide transformation around AIP, reimagining every function from underwriting to claims processing, leading to a significant expansion of our work together. Our partnership with TWG Global, named Vergence.ai, continues to gain momentum. As TWG Global's Thomas Toll noted, what was once a competitive advantage is now a competitive necessity. Companies that fail to incorporate AI into their core operations will be outpaced by those that do. These examples underscore what we are seeing. We are the only platform bringing true transformational impact to the enterprise AI market. Turning to our US government business, revenue grew 52% year-over-year and 14% sequentially as we continue to deliver mission-critical capabilities.

On a trailing 12 month basis, we generated $2 billion in adjusted free cash flow for the first time in the company's history.

Speaker #2: Our revenue and profitability drove a 20-point sequential increase to a rule of 40 score from 94 in the second quarter to 114 in the third quarter.

Turning to our global top line results third quarter revenue grew 63% year over year, and 18% sequentially to 1.181 billion.

Speaker #2: On a trailing 12-month basis, we generated $2 billion in adjusted free cash flow for the first time in the company's history. Turning to our global top-line results, third quarter revenue grew 63% year over year and 18% sequentially to $1.181 billion.

Third quarter U S revenue grew 77% year over year, and 20% sequentially to $883 million.

Excluding the impact of revenue from strategic commercial contracts third quarter revenue grew 65% year over year, and 18% sequentially and third quarter U S revenue grew 78% year over year and 20% sequentially.

Speaker #2: Third quarter US revenue grew 77% year over year and 20% sequentially to $800. And $83 million. Excluding the impact of revenue from strategic commercial contracts, third quarter revenue grew 65% year over year and 18% sequentially, and third quarter US revenue grew 78% year over year and 20% sequentially.

We closed our highest ever quarter of TCP bookings at $2 8 billion up 151% year over year.

This eclipses, our prior highest quarter of TCP bookings, just last quarter by nearly half a billion dollars.

Customer count grew 45% year over year, and 7% sequentially to 911 customers.

Speaker #2: We closed our highest ever quarter of TCV bookings at $2.8 billion, up 151% year over year. This eclipses our prior highest quarter of TCV bookings just last quarter by nearly half a billion dollars.

Ryan Taylor: We remain deeply committed to our founding mission of supporting the US government, honored by the privilege of equipping our nation with transformative software that actually works. We remain focused on delivering the most advanced defense capabilities in the world to the US government and internationally to our allied partners around the world. The momentum we're carrying into Q4 is extraordinary. As we look towards the end of the year, our mission is clear. Deliver the production capabilities that turn AI from promise into performance for the enterprises defining the future of their industries through AIP's compounding AI leverage. I'll now turn it over to Shyam.

Revenue from our largest customers continues to expand third.

Third quarter trailing 12 months revenue from our top 20 customers increased 38% year over year to $83 million per customer.

Speaker #2: Customer count grew 45% year over year and 7% sequentially to $911 customers. Revenue from our largest customers continues to expand. Third quarter trailing 12-month revenue from our top 20 customers increased 38% year over year to $83 million per customer.

Now moving to our commercial segment.

Third quarter commercial revenue grew 73% year over year, and 22% sequentially to $548 million.

This is the fourth consecutive quarter that revenue from our commercial business has been larger than our U S government business, excluding the impact from strategic commercial contracts third quarter commercial revenue grew 77% year over year and 22% sequentially.

Speaker #2: Now moving to our commercial segment. Third quarter commercial revenue grew 73% year over year and 22% sequentially to $548 million. This is the fourth consecutive quarter that revenue from our commercial business has been larger than our US government business.

We closed $1 4 billion and commercial TCP bookings, representing a 132% growth year over year and 32% sequentially.

Shyam Sankar: Thanks, Ryan. Twenty years of grinding has built a unique moat and a growing lead. Our products were built for this moment, and the numbers continue to show it. Realizing value from AI in the enterprise requires the elegant integration of LLMs, workflow, and software, and this is only possible with ontology. Our foundational investments in ontology and infrastructure have positioned us to uniquely deliver on AI demand now and in the world ahead. The most significant product developments are the accelerating progress in our AI applications inside of AIP. AIFDE, our AIP-native development agent that understands how to connect to data sources, how to integrate and transform data, how to create ontologies and functions, and build applications, is unleashing incredible speed and productivity for our FDEs and customer developers alike.

Speaker #2: Excluding the impact from strategic commercial contracts, third quarter commercial revenue grew 77% year over year and 22% sequentially. We closed $1.4 billion in commercial TCV bookings representing 132% growth year over year and 32% sequentially.

AIP continues to drive existing customer expansions and new customer conversions in the U S third quarter U S. Commercial revenue grew 121% year over year, and 29% sequentially to $397 million.

Excluding revenue from strategic commercial contracts third quarter U S. Commercial revenue grew 126% year over year and 29% sequentially.

Speaker #2: AIP continues to drive existing customer expansions and new customer conversions in the US. Third quarter US commercial revenue grew 121% year over year and 29% sequentially to $397 million.

In the third quarter, we closed $1 3 billion of U S commercial TCP bookings representing growth of 342% year over year and surpassing the $1 billion Mark for the first time.

Speaker #2: Excluding revenue from strategic commercial contracts, third quarter US commercial revenue grew 126% year over year and 29% sequentially. In the third quarter, we closed $1.3 billion of US commercial TCV bookings representing growth of 342% year over year and surpassing the billion dollar mark for the first time.

Over the past 12 months, we closed $3 8 billion of U S. Commercial TCP bookings of 217% increase from the prior 12 months highlighting the demand for AI production use cases.

Total remaining deal value in our U S commercial business grew 199% year over year and 30% sequentially.

Shyam Sankar: At one customer, two human FDEs spawned an army of AIFDEs to migrate a customer off their legacy data warehouse in five days, something that would have taken an army of SIs up to two years. This is not a prototype. This is production. Across our customers, the results are shocking. AI HiveMind is a new AIP capability that orchestrates a swarm of dynamically generated agents to tackle hard problem-solving, idea generation refinement, and executable proposal generation that is integrated with ontology and therefore aware of the context of your enterprise. AI HiveMind was originally developed to solve extremely complex problems in the classified space, but it has already been used to help our commercial customers identify bottlenecks in their supply chain, proactively developing possible solutions, and then leveraging AIFDE to code that up into an actual solution.

Speaker #2: Over the past 12 months, we closed $3.8 billion of US commercial TCV bookings a 217% increase from the prior 12 months, highlighting the demand for AI production use cases.

Our U S commercial customer count grew to 530 customers, reflecting growth of 65% year over year and 9% sequentially.

Speaker #2: Total remaining deal value in our US commercial business grew $199% year over year and 30% sequentially. Our US commercial customer count grew to 530 customers, reflecting growth of 65% year over year and 9% sequentially.

Third quarter International commercial revenue grew 10% year over year, and 5% sequentially to $152 million.

For international and commercial business, we continue to capitalize on targeted growth opportunities in Asia, the middle East and beyond we remain focused on accelerating the growth in our U S business.

Speaker #2: Third quarter international commercial revenue grew 10% year over year and 5% sequentially to $152 million. For international commercial business, we continue to capitalize on targeted growth opportunities in Asia, the Middle East, and beyond but remain focused on accelerating the growth in our US business.

Revenue from strategic commercial contracts was $2 9 million for the quarter.

We anticipate fourth quarter 2025 revenue from these contracts to be between $2 million to $4 million compared to $9 6 million in the fourth quarter of 2024.

We anticipate 2025 revenue from these contracts to be less than half of 1% for full year revenue.

Speaker #2: Revenue from strategic commercial contracts was $2.9 million for the quarter. We anticipate fourth quarter 2025 revenue from these contracts to be between $2 to $4 million compared to $9.6 million in the fourth quarter of 2024.

Shifting to our government segment third quarter government revenue grew 55% year over year, and 14% sequentially to $633 million.

Shyam Sankar: In the government space, AI HiveMind is able to take its proposals and generate intricate mission plans right in Gaia and Maverick. Our focus with AIP continues to be enterprise autonomy, our normative view of where the value is for AI in the enterprise. HiveMind now lets the AI develop novel solutions to emergent challenges and to identify hidden opportunities. The rest of AIP enables you to turn those ideas into an implemented reality. Closed-loop evolution of the business with AI is possible because of AIP and ontology. We continue to make investments that allow enterprises to extend AIP to the far edge. Edge ontology is a new lightweight implementation of ontology that runs on mobile devices and enables customers to build mobile applications or embedded software for hardware, things like drones and robots, and is fully integrated with your enterprise's AIP instance.

Speaker #2: We anticipate 2025 revenue from these contracts to be less than half of 1% of full year revenue. Shifting to our government segment, third quarter government revenue grew 55% year over year and 14% sequentially to $633 million.

Third quarter U S government revenue grew 52% year over year, and 14% sequentially to $486 million. This growth was driven by continued execution in existing programs and new awards, reflecting the growing demand for AI and our government software offerings.

Speaker #2: In the third quarter, U.S. government revenue grew 52% year over year and 14% sequentially to $486 million. This growth was driven by continued execution in existing programs and new awards, reflecting the growing demand for AI in our government software offerings.

Third quarter International government revenue grew 66% year over year, and 16% sequentially to $147 million bolstered primarily by our continued work in the U K as.

As previously mentioned, we closed our highest ever quarter of TCP bookings at $2 8 billion up 151% year over year.

Speaker #2: Third quarter international government revenue grew 66% year over year and 16% sequentially to $147 million, bolstered primarily by our continued work in the UK.

Net dollar retention was 134% an increase of 600 basis points from last quarter.

Increase was driven both by expansions of existing customers and new customers acquired in Q3 of last year as we see the effect of the AI Revolution.

Speaker #2: As previously mentioned, we closed our highest ever quarter of TCV bookings at $2.8 billion, up 151% year over year. Net dollar retention was $134%, an increase of 600 basis points from last quarter.

Shyam Sankar: Turning to field-facing updates, the US Army issued an official public memo directing all Army organizations to consolidate and centralize on Vantage, the Army data platform built on Foundry and AIP. The Army views this not merely as a technical decision, but a cultural decision, enabling the data-driven decision-making that continues to make our Army the most lethal in the world. This directive will enable the Army to rapidly sunset legacy systems and enable more investment in the Army's future force, concept, and systems. Warp Speed and the American Tech Fellowship are early investments to support manufacturing and reindustrialization in America, and are bearing fruit. While Warp Speed launched by helping new defense entrants meet their surging production goals, it is now being rapidly adopted across the traditional defense industrial base and the maritime industrial base.

Isn't that dollar retention does not include revenue from new customers that were acquired in the past 12 months. It does not yet fully capture the acceleration and velocity in our U S business over the past year.

Speaker #2: The increase was driven both by expansions at existing customers and new customers acquired in Q3 of last year, as we see the effect of the AI revolution.

We ended the third quarter with $8 6 billion in total remaining deal value, an increase of 91% year over year, and 21% sequentially and $2 6 billion and our remaining performance obligations and increase of 66% year over year and 8% sequentially.

Speaker #2: As net dollar retention does not include revenue from new customers that were acquired in the past 12 months, it does not yet fully capture the acceleration and velocity in our US business over the past year.

Speaker #2: We ended the third quarter with $8.6 billion in total remaining deal value and an increase of 91% year over year and 21% sequentially and $2.6 billion in a remaining performance obligations and an increase of 66% year over year and 8% sequentially.

As a reminder, our apio is primarily comprised of our commercial business.

Is it does not take into account contracts with initial term of less than 12 months and contractual obligations that fault on termination for convenience clauses, both of which are common in most of our government business.

Speaker #2: As a reminder, RPO is primarily comprised of our commercial business. As it does not take into account contracts within 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 84% for the quarter.

Adjusted income from operations, which excludes stock based compensation expense and related employer payroll taxes was $601 million, representing adjusted operating margin of 51%.

Shyam Sankar: The second cohort of the American Tech Fellowship will be wrapping up in the next few weeks. We started the American Tech Fellowship because we noticed that many of our best builders were frontline workers. They do not come from conventional consulting backgrounds. They do not have formal computer science backgrounds. To highlight a few of these folks, Mason, a Louisiana-based civil engineer, is building AI applications for more accurate estimates for heavy construction projects, something that is only going to grow with our reindustrialization. Michael, who works for a potato farm in North Dakota, is streamlining its operations. Cody from Georgia, who is a utilities expert, is building in Foundry to deliver safe, reliable energy across the South. These Americans are the true face of innovation, underscoring that it will be the American worker with AI that drives reindustrialization and American prosperity.

Speaker #2: Turning to margin and expense, adjusted gross margin, which excludes stock-based compensation expense, was $84% for the quarter. Adjusted income from operations, which excludes stock-based compensation expense and related employer payroll taxes, was $601 million, representing adjusted operating margin of 51%.

Q3, adjusted expense was $581 million up 8% sequentially and 29% year over year, primarily driven by our continued investment in AIP and technical hiring.

We continue to expect expenses to increase in the fourth quarter as 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.

Speaker #2: Q3 adjusted expense was $581 million, up 8% sequentially and 29% year over year primarily driven by our continued investment in AIP and technical hiring.

Third quarter GAAP operating income was $393 million, representing a 33% margin.

Speaker #2: We continue to expect expenses to increase in the fourth quarter as 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.

Third quarter GAAP net income was $476 million, representing a 40% margin.

Third quarter stock based compensation expense was $172 million and equity related employer payroll tax expense was $35 million.

Shyam Sankar: Our customers have taken notice and asked us to create American Tech Fellowship programs for their employees, specifically to include Lear, who highlighted their fellowship in their recent earnings call. With that, I will turn it over to Dave to take us through the numbers.

Speaker #2: Third quarter GAAP operating income was $393 million, representing a 33% margin. Third quarter GAAP net income was $476 million, representing a 40% margin. Third quarter stock-based compensation expense was $172 million, and equity-related employer payroll tax expense was $35 million.

Third quarter GAAP earnings per share was <unk> 18.

Third quarter adjusted earnings per share was 21.

Additionally, our combined revenue growth and adjusted operating margin accelerated to 114% in the third quarter, a 20 point increase to our rule of 40 score from the prior quarter and our ninth consecutive quarter of an expanding rule of 40 score.

Dave Glazer: Thanks, Shyam. We announced standing Q3, achieving a Rule of 40 score of 114, our highest ever by 20 points. We also generated our highest-ever reported revenue growth rate of 63% year-over-year, exceeding the high end of our prior guidance by 1,300 basis points and representing a 3,300 basis point increase compared to the growth rate in Q3 of last year. On the back of this extraordinary strength, we are guiding to revenue of $1.329 billion in the fourth quarter, representing 13% growth quarter over quarter, our highest-ever sequential revenue growth guide, and 61% growth year-over-year. We're also raising our full year 2025 revenue guidance midpoint to $4.398 billion, representing a 53% year-over-year growth rate and $252 million increase over our full year 2025 revenue guidance last quarter.

Speaker #2: Third quarter GAAP earnings per share was $0.18. Third quarter adjusted earnings per share was $0.21. Additionally, our combined revenue growth and adjusted operating margin accelerated to $114% in the third quarter a 20-point increase to our rule of 40 score from the prior quarter and our ninth consecutive quarter of an expanding rule of 40 score.

With the increase in our 'twenty 'twenty drive revenue and adjusted operating income guidance, we are not guiding to a rule of 40 score of 102% for the full year.

Turning to our cash flow in the third quarter, we generated $508 million in cash from operations and $540 million and adjusted free cash flow representing margins of 43% and 46% respectively. Additionally.

Speaker #2: With the increase in our 2025 revenue and adjusted operating income guidance, we are now guiding to a Rule of 40 score of 102% for the full year.

Additionally, we achieved $2 billion in trailing 12 months adjusted free cash flow for the first time.

Speaker #2: Turning to our cash flow, in the third quarter, we generated $508 million in cash from operations and $540 million in adjusted free cash flow representing margins of 43% and 46% respectively.

Through the ended the third quarter, we repurchased approximately $2 6 million shares as part of our share repurchase program.

As of the end of the quarter, we have 880 million remaining of the original authorization.

Speaker #2: Additionally, we achieved $2 billion in trailing 12-month adjusted free cash flow for the first time. Through the end of the third quarter, we repurchased approximately 2.6 million shares as part of our share repurchase program.

We ended the quarter with $6 4 billion in cash cash equivalents and short term U S Treasury Securities.

Dave Glazer: In addition, we're raising our full year US commercial revenue guidance to in excess of $1.433 billion, representing a growth rate of at least 104% year-over-year, a 19-point increase over the guidance we gave just last quarter. Accelerating demand for AIP continues to drive the outperformance in our US business overall, which grew 77% year-over-year and 20% sequentially in the third quarter. Our US commercial business grew 121% year-over-year and 29% sequentially, and our US government business grew 52% year-over-year and 14% sequentially. We delivered these exceptional top-line results while also achieving our highest-ever reported adjusted operating margin of 51%, exceeding the high end of our prior guidance by 500 basis points and highlighting the unit economics of our business at scale. Our revenue and profitability drove a 20-point sequential increase to our Rule of 40 score from 94 in the second quarter to 114 in the third quarter.

Now turning to our outlook for.

For Q4 2025, we expect revenue of between 1.327, and 133 1 billion and adjusted income from operations of between 695 and $699 million.

Speaker #2: As of the end of the quarter, we have $880 million remaining of the original authorization. We ended the quarter with $6.4 billion in cash, cash equivalents, and short-term US Treasury securities.

Speaker #2: Now turning to our outlook, for Q4 2025, we expect revenue of between $1.327 and $1.331 billion, and adjusted income from operations of between $695 and $699 million.

For full year 2025, we are raising our revenue guidance to be.

Nine six and $4 400 billion.

We are raising our U S commercial revenue guidance to an excess of 143 3 billion, representing a growth rate of at least 104%.

Speaker #2: For full year 2025, we are raising our revenue guidance to between $4.396 and $4.400 billion, we are raising our US commercial revenue guidance to an excess of $1.433 billion, representing a growth rate of at least 104%.

We are raising our adjusted income from operations guidance to between 2151, and 215 5 billion.

We are raising our adjusted free cash flow guidance to between one nine and $2 1 billion.

And we continue to expect GAAP operating income and net income in each quarter of this year.

Speaker #2: We are raising our adjusted income from operations guidance to between $2.151 and $2.155 billion, we are raising our adjusted free cash flow guidance to between $1.9 and $2.1 billion, and we continue to expect GAAP operating income and net income in each quarter of this year.

With that I'll turn it over to Alex for a few remarks, and then onno will kick off the Q&A.

Dave Glazer: On a trailing 12-month basis, we generated $2 billion in adjusted free cash flow for the first time in the company's history. Turning to our global top-line results, Q3 revenue grew 63% year-over-year and 18% sequentially to $1.181 billion. Q3 US revenue grew 77% year-over-year and 20% sequentially to $883 million. Excluding the impact of revenue from strategic commercial contracts, Q3 revenue grew 65% year-over-year and 18% sequentially, and Q3 US revenue grew 78% year-over-year and 20% sequentially. We closed our highest-ever quarter of TCV bookings at $2.8 billion, up 151% year-over-year. This eclipses our prior highest quarter of TCV bookings just last quarter by nearly half a billion dollars. Customer count grew 45% year-over-year and 7% sequentially to 911 customers. Revenue from our largest customers continues to expand. Q3 trailing 12-month revenue from our top 20 customers increased 38% year-over-year to $83 million per customer.

Greetings.

By any normal or even reasonable standard these are not normal.

Speaker #2: With that, I'll turn it over to Alex for a few remarks and then Ana will kick off the Q&A. Greetings. By any normal or even reasonable standard, these are not normal results.

These are not even strong results. These arent extraordinary results. These are arguably the best results that any software company has ever delivered.

And.

And if that's a hyperbolic despite what youre Alice trends may want you to believe because they've been wrong at every price the wrong on every at every single round, but of course, they're persuasive and theyre not investing their own money, but.

Speaker #2: These are not even strong results. These aren't extraordinary results. These are arguably the best results that any software company has ever delivered. And if that's not hyperbolic, despite what your analyst friends may want you to believe, because they've been wrong at every price, they're wrong on every single round.

A normal enterprise company should not have a rule of 40 above 100, a normal enterprise company at our base should not have over 100% U S. Commercial growth should not have 77% growth in the U S.

Speaker #2: But of course, they're persuasive, and they're not investing their own money. But a normal enterprise company should not have a rule of 40 above 100.

And by the way that.

That growth is being held down by a stagnant Europe, which is still a significant part of our business. So the pure.

Speaker #2: A normal enterprise company at our base should not have over 100% US commercial growth, should not have 77% growth in the US, and by the way, that growth is being held down by a stagnant Europe, which is still a significant part of our business.

Unvarnished numbers are 77, 6% growth off of a massive significant base with very significant cash flow with a company that throws off a rule of 40 or 102014 and then.

Dave Glazer: Now moving to our commercial segment. Q3 commercial revenue grew 73% year-over-year and 22% sequentially to $548 million. This is the fourth consecutive quarter that revenue from our commercial business has been larger than our US government business. Excluding the impact from strategic commercial contracts, Q3 commercial revenue grew 77% year-over-year and 22% sequentially. We closed $1.4 billion in commercial TCV bookings, representing 132% growth year-over-year and 32% sequentially. AIP continues to drive existing customer expansions and new customer conversions in the US. Q3 US commercial revenue grew 121% year-over-year and 29% sequentially to $397 million. Excluding revenue from strategic commercial contracts, Q3 US commercial revenue grew 126% year-over-year and 29% sequentially. In the third quarter, we closed $1.3 billion of US commercial TCV bookings, representing growth of 342% year-over-year and surpassing the billion-dollar mark for the first time.

Speaker #2: So the pure unvarnished numbers are 77% growth off of a massive, significant base with very significant cash flow, with a company that throws off a rule of 40 of 114.

If this world was it all Sane every single month every single person in the financial World with stop and say how did this happen how did a company, which stand stood by the American Warfighter.

Speaker #2: And then if this world was at all sane, every single person in the financial world would stop and say, "How did this happen? How did a company which stood by the American warfighter, Marine special operators, people in clandestine services, who stood up for our right of free speech and was really the first company to be completely anti-woke?

Marine special operators.

People and client Essent services, who stood up for our right of free speech was really the first company to be completely ante vote.

How did this company stick up to the American Warfighter.

Actually give normal Americans venture quality results. So one of the issues, we have with the arbiters of truth is.

It was the American worker that we supported in the American worker that we help to make rich and arbiters of true somehow did not participate in that because they were such experts and of course.

Speaker #2: How did this company stick up for the American warfighter? Actually give normal Americans venture-quality results, so one of the issues we have with the arbiters of truth is it was the American worker that we supported and the American worker that we helped make rich.

What these numbers show is.

Doing that and taking the American worker along with it.

And doing it in a way that for shattered the future FDA ontology foundry, making each specific institution, making the American Warfighter fight the way the American Warfighter is born to fight empowering.

Speaker #2: And the arbiters of truth somehow did not participate in that because they were such experts. And of course, but what these numbers show is doing that and taking the American worker along with it, and doing it in a way that foreshadowed the future.

Dave Glazer: Over the past 12 months, we closed $3.8 billion of US commercial TCV bookings, a 217% increase from the prior 12 months, highlighting the demand for AI production use cases. Total remaining deal value in our US commercial business grew 199% year-over-year and 30% sequentially. Our US commercial customer count grew to 530 customers, reflecting growth of 65% year-over-year and 9% sequentially. Q3 international commercial revenue grew 10% year-over-year and 5% sequentially to $152 million. For international commercial business, we continue to capitalize on targeted growth opportunities in Asia, the Middle East, and beyond, but remain focused on accelerating the growth in our US business. Revenue from strategic commercial contracts was $2.9 million for the quarter. We anticipate Q4 2025 revenue from these contracts to be between $2 to 4 million compared to $9.6 million in the fourth quarter of 2024.

The.

The tenants are being.

Speaker #2: FDA ontology foundry making each specific institution, making the American warfighter fight the way the American warfighter is born to fight. Empowering the tenants of being free and having the ability to do creative things.

Free and having the ability to do creative things.

In the battlefield context.

And then taking enterprises instead of selling them commodity parasitic software with a massive sales force with a kind of lumbering.

Jargon bearing leaders offering you steaks and dinners and other things we will show not mentioned in order that you turn the value of the high value.

Speaker #2: In the battlefield context, and then taking enterprises instead of selling them commodity parasitic software with a massive sales force, with a kind of lumbering jargon-bearing leaders offering you stakes and dinners and other things.

Revenue of your enterprise over to them in return for for these accolades, we created direct alignment with our customers and what does that mean it means when our customers have a unique and tribal way of doing something whether it's underwriting or fighting or making workers, even more valuable we put an FTE.

Speaker #2: We shall not mention, in order that you turn the high revenue value of your enterprise over to them, in return for these accolades.

Dave Glazer: We anticipate 2025 revenue from these contracts to be less than half of 1% of full year revenue. Shifting to our government segment, Q3 government revenue grew 55% year-over-year and 14% sequentially to $633 million. Q3 US government revenue grew 52% year-over-year and 14% sequentially to $486 million. This growth was driven by continued execution in existing programs and new awards reflecting the growing demand for AI in our government software offerings. Q3 international government revenue grew 66% year-over-year and 16% sequentially to $147 million, bolstered primarily by our continued work in the UK. As previously mentioned, we closed our highest-ever quarter of TCV bookings at $2.8 billion, up 151% year-over-year. Net dollar retention was 134%, an increase of 600 basis points from last quarter.

We orchestrated an ontology, we take the tribal understanding of their business a specific nature of their business that makes them particular and valuable and lethal and we empower that and how do we participate in that unlike you guys seemingly in that most obvious way we are downstream from the value creation. So when you.

Speaker #2: We created direct alignment with our customers. And what does that mean? It means when our customers have a unique and tribal way of doing something, whether it's underwriting or fighting or making workers even more valuable, we put an FDA, we orchestrated an ontology, we take the tribal understanding of their business, the specific nature of their business that makes them particular and valuable and lethal, and we empower that.

C 141, or <unk>, 77% or 63, and you can ask and by the way with really a workforce that is not growing in any way winner of the proportional to that growth and also with our sales force, which is declining which seems improbable.

Speaker #2: And how do we participate in that? Unlike seemingly in the most obvious way, we are downstream from the value creation. So when you see 141 or you see 77% or 63 and you ask, "And by the way, with really a workforce that is not growing in any way linearly proportional to that growth and also with a sales force which is declining, which seems improbable," the reason why that's working is because we are making our clients more money, or we're making them more dominant on the battlefield, and they're paying us a subset of that.

The reason why that's working is because we are making our clients more money or we're making them more dominant on the battlefield and theyre paying us a subset of that and and this is why these numbers are so extraordinary the sizes the sociological and political version of this should be wait a minute how can we learn from this.

Dave Glazer: The increase was driven both by expansions, existing customers, and new customers acquired in Q3 of last year, as we see the effect of the AI revolution. As net dollar retention does not include revenue from new customers that were acquired in the past 12 months, it does not yet fully capture the acceleration and velocity in our US business over the past year. We ended Q3 with $8.6 billion in total remaining deal value, an increase of 91% year-over-year and 21% sequentially, and $2.6 billion in remaining performance obligations, an increase of 66% year-over-year and 8% 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.

How can we implement institutions by the way.

We have all these people are talking about AI bottle I'll tell you what $1 14 proves there is a massive part of the AI market that actually cares about value creation and that's the part we own.

Speaker #2: And this is why these numbers are so extraordinary. The sociological and political version of this should be, "Wait a minute, how can we learn from this?

Speaker #2: How can we implement institutions?" By the way, we have all these people talking about an AI bottle. I'll tell you what 114 proves. There is a massive part of the AI market that actually cares about value creation, and that's the part we own.

And we own that part because to do this you have to have FTE orchestration you have to have ontology and you have to have foundry and you have to have access to the game and you have to have deep understanding of how to do that and you have to have done. This for a very very long time with products by the way and then the products are getting better and better and better and better and I'll, let Sean talk about what we're doing on the battlefield.

Speaker #2: And we own that part because to do this, you have to have FDA orchestration, you have to have ontology, and you have to have foundry, and you have to have access to the game.

To the extent, we can but you see the very similar trajectory, where we're giving America both in industry and in government a massive unfair advantage and again you see it like if you look at our numbers look at how poorly the Europe is doing look how well Americans doing look how we're doing this and again, it's not just top line. The rule of 114 that we have.

Dave Glazer: Turning to margin and expense, adjusted gross margin, which excludes stock-based compensation expense, was 84% for the quarter. Adjusted income from operations, which excludes stock-based compensation expense and related employer payroll taxes, was $601 million, representing adjusted operating margin of 51%. Q3 adjusted expense was $581 million, up 8% sequentially and 29% year-over-year, primarily driven by our continued investment in AIP and technical hiring. We continue to expect expenses to increase in the fourth quarter, as 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. Q3 GAAP operating income was $393 million, representing a 33% margin. Q3 GAAP net income was $476 million, representing a 40% margin. Q3 stock-based compensation expense was $172 million, and equity-related employer payroll tax expense was $35 million. Q3 GAAP earnings per share was $0.18.

Speaker #2: And you have to have deep understanding of how to do that, and you have to have done this for a very, very long time with products.

Speaker #2: By the way, and then the products are getting better and better and better and better. And I'll let Shyam talk about what we're doing on the battlefield to the extent that he can, but you see the very similar trajectory where we're giving America both an industry and a government, a massive unfair advantage.

Shows topline and Bottomline growth that is distinctive massive and unique and on top of everything else.

Speaker #2: And again, you see it like if you look at our numbers, look at how poorly Europe is doing. Look how well America is doing.

<unk>.

There is this issue in the U S.

Speaker #2: Look how we're doing this. And again, it's not just top line. The rule of 114 that we have shows top line and bottom line growth that is distinctive, massive, and unique.

We're all focused on an apology are which is what access at what portion of the GDP growth that we're blessed to have in this country, meaning.

GDP growth defined our helped out and bolstered by a by AI what.

Speaker #2: And on top of everything else, there is this issue in the US that we're all focused on at Palantir, which is what access, what portion of the GDP growth that we're blessed to have in this country?

Percentage of that is available to the American worker and so when were were.

AI GDP availability for the American worker, meaning do they participate in this growth or is it just people around this table, who are getting richer and richer and then you see our platform on the battlefield as John was mentioning the people doing the coding and AIP, our vocational Lee trained smart Americans with specific no.

Speaker #2: Meaning GDP growth defined or helped out and bolstered by A, by AI, what percentage of that is available to the American worker? And so when we're AI, GDP availability for the American worker, meaning do they participate in this growth, or is it just people around this table who are getting richer and richer?

Dave Glazer: Q3 adjusted earnings per share was $0.21. Additionally, our combined revenue growth and adjusted operating margin accelerated to 114% in the third quarter, a 20-point increase to our Rule of 40 score from the prior quarter, and our ninth consecutive quarter of an expanding Rule of 40 score. With the increase in our 2025 revenue and adjusted operating income guidance, we are now guiding to a Rule of 40 score of 102% for the full year. Turning to our cash flow, in the third quarter, we generated $508 million in cash from operations and $540 million in adjusted free cash flow, representing margins of 43% and 46%, respectively. Additionally, we achieved $2 billion in trailing 12-month adjusted free cash flow for the first time. Through the end of the third quarter, we repurchased approximately 2.6 million shares as part of our share repurchase program.

They don't have and actually and your people on the factory floor very same thing people across the nation truck drivers.

Speaker #2: And then you see our platform on the battlefield, as Shyam was mentioning, the people doing the coding in AIP are vocationally trained smart Americans with specific knowledge.

Anybody with specific domain expertise is more powerful more valuable in our product than they were yesterday in fact, the real Miss alignment of AI is with people with commodity like high trained elite institution General specialist, that's just not as valuable as it was in yes.

Speaker #2: They don't have and actually, and the people on the factory floor, very same thing. People across the nation, truck drivers, anybody with specific domain expertise is more powerful, more valuable in our product than they were yesterday.

The destructive positive destruction of capitalism is going to put that class of people typically the class of people that also as kind of skeptical of pounds here under enormous pressure, but it is or what I see in these numbers and what I think we see in these numbers is to.

Speaker #2: In fact, the real misalignment of AI is with people with commodity-like high-trained elite institution general specialists that's just not as valuable as it was.

Speaker #2: And yes, the destructive positive destruction of capitalism is going to put that class of people typically the class of people that also kind of skeptical of Palantir under enormous pressure.

<unk> put it slightly over the top we yeah, we were right you're wrong and we are going to go very very deep on our rightness because it is exceedingly.

Dave Glazer: As of the end of the quarter, we have $880 million remaining of the original authorization. We ended the quarter with $6.4 billion in cash, cash equivalents, and short-term US Treasury securities. Now turning to our outlook. For Q4 2025, we expect revenue of between $1.327 and $1.331 billion and adjusted income from operations of between $695 and $699 million. For full year 2025, we are raising our revenue guidance to between $4.396 and $4.400 billion. We are raising our US commercial revenue guidance to an excess of $1.433 billion, representing a growth rate of at least 104%. We are raising our adjusted income from operations guidance to between $2.151 and $2.155 billion. We are raising our adjusted free cash flow guidance to between $1.9 and $2.1 billion, and we continue to expect GAAP operating income and net income in each quarter of this year.

Exceedingly good for America, it's exceedingly good for the American economy, it's as good for American workers, and you know what I really enjoy turning on television and seeing some analysts explain why some other company is better than our simply because they didn't make any money on our company and probably aren't and we're just going to keep going and going and going.

Speaker #2: But it is our what I see in these numbers and what I think we see in these numbers is to be put it slightly over the top.

Speaker #2: Yeah, we were right. You were wrong. And we are going to go very, very deep on our rightness because it is exceedingly good for America.

Speaker #2: It's exceedingly good for the American economy. It's as good for American workers. And you know what? I really enjoy turning on TV and seeing some analysts explain why some other company is better than ours simply because they didn't make any money on our company and probably aren't.

And then we're obviously not in our forecast for next year, but I would say if you are thinking about how this company is going to go look at our ability to value create looked at our ability to grow revenue on the top and look at it look at the unit economics of our business. If you are a technical expert in and how do you evaluate business evaluate those numbers against any other business you've had.

Speaker #2: And we're just going to keep going and going and going. And then we're obviously not going to forecast for next year, but I would say if you're thinking about how this company is going to go, look at our ability to value create, look at our ability to create revenue on the top end, look at it, look at the unit economics of our business.

Ever seen and then make your decision, but yet a wildly enthusiastic I think were wildly enthusiastic and.

And thank you for those of you who stayed with us to enjoy these numbers, especially in <unk>.

Speaker #2: If you're a technical expert in how do you evaluate business, evaluate those numbers against any other business you've ever seen. And then make your decision.

Who worked day and night to deliver these kind of numbers.

Speaker #2: But yeah, I'm wildly enthusiastic. I think we're wildly enthusiastic. And thank you for those of you who stayed with us to enjoy these numbers, especially Palantir, who worked day and night to deliver these kinds of numbers.

Dave Glazer: With that, I'll turn it over to Alex for a few remarks, and then Ana will kick off the Q&A.

Thank you Alex I will now turn to questions from our shareholders before opening up the call.

Received a few questions asking what do you see as powertrains unique differentiator that others may not understand.

Alex Karp: Greetings. By any normal or even reasonable standard, these are not normal results. These are not even strong results. These aren't extraordinary results. These are arguably the best results that any software company has ever delivered. That's not hyperbolic, despite what your analyst friends may want you to believe, because they've been wrong at every price. They're wrong at every single round, but of course they're persuasive, and they're not investing their own money. A normal enterprise company should not have a Rule of 40 above 100. A normal enterprise company at our base should not have over 100% US commercial growth, should not have 77% growth in the US. By the way, that growth is being held down by a stagnant Europe, which is still a significant part of our business.

While Alex mentioned a bit of this year. It has become fashionable akshay for lots of companies to start hiring Ftes. The financial times had an article about the most popular new job title, but what you see is that they don't really understand it. It's just mimetic and everything Alex you said like we build software that works not software that ought to work, we built software for the world as it.

Speaker #1: Thank you, Alex. We'll now turn to questions from our shareholders before opening up the call. We received a few questions asking, what do you see as Palantir's unique differentiator that others may not understand?

Speaker #2: Well, Alex mentioned a bit of this here. It's become fashionable, actually, for lots of companies to start hiring FDEs. The Financial Times had an article about how it's the most popular new job title.

Not a world that never was and this ability to find what's true that comes from the FTE. Our measure of success is not that we sell the software. It did we solve the problem and we have built an entire software stack over two decades.

Speaker #2: But what you see is that they don't really understand it. It's just mimetic. And if everything Alex just said, we build software that works, not software that ought to work.

Speaker #2: We build software for the world as it exists, not a world that never was. And this ability to find what's true that comes from the FDE.

Downstream of creating value for our customers that led to the ontology a decade ago more than a decade ago, which is a fundamental prerequisite to getting value out of <unk> in the enterprise and this passenger it led to AI bind in AFD.

Speaker #2: Our measure of success is not did we sell the software. It's did we solve the problem? And we have built an entire software stack, over two decades, downstream of creating value for our customers.

The other thing which is implicit in that is it the way we work puts us up portion of that has to go up the chain of complexity.

Alex Karp: The pure, unvarnished numbers are 77% growth off of a massive, significant base with very significant cash flow with a company that throws off a Rule of 40 of 114. If this world was at all sane, every single person in the financial world would stop and say, how did this happen? How did a company which stood by the American warfighter, Marine special operators, people in clandestine services, who stood up for our right of free speech and was really the first company to be completely anti-woke, how did this company stick up for the American warfighter, actually give normal Americans venture-quality results? One of the issues we have with the arbiters of truth is it was the American worker that we supported and the American worker that we helped make rich. Arbiters of truth somehow did not participate in that because they were such experts.

Speaker #2: That led to the ontology a decade ago—more than a decade ago—which is a fundamental prerequisite to getting value out of LLMs in the enterprise.

Every day, so we're taking on the most painful most integral most valuable parts of the stack and every enterprise and it's precisely because that's the way, we actually lever our ability to deploy and orchestrate ftes. That's the way, we make our products stronger and quite frankly, that's the way we produce these numbers because.

Speaker #2: And this past year, it led to AI hive mind and AI FDE.

Speaker #3: The other thing, which is implicit in that, is the way we work puts us up, forces us to go up the chain of complexity.

Speaker #3: Every day. So we're taking on the most painful, most integral, most valuable parts of the stack in every enterprise. And it's precisely because that's the way we actually lever our ability to deploy and orchestrate FDEs.

The closer you are to the frontline of the very complex problem that a black box was not meant to solve cannot solve and at this point everyone knows a joke to believe Vic itself.

Speaker #3: That's the way we make our product stronger. And quite frankly, that's the way we produce these numbers because the closer you are to the front line of the very complex problem that a black box was not meant to solve cannot solve.

That's where you at.

And by the way, it's the safest position for us because this company we will always believe.

Yet we are outsiders, we need to be in a place where the most valuable problem is being solved because that's the way we ended up staying solving the problem Tomorrow tomorrow and the way we get paid.

Speaker #3: And at this point, everyone knows a joke to believe it could solve. That's where you and by the way, it's the safest position for us because this company we will always believe that we are outsiders.

Thank you. Our next question is from Dan with Wedbush, Dan. Please turn on your camera and then you'll receive a prompt on mute your line.

Speaker #3: We need to be in the place where the most valuable problem is being solved because that's the way we end up staying, solving the problem tomorrow and the way we get paid.

Alex Karp: Of course, you know, what these numbers show is doing that and taking the American worker along with it, and doing it in a way that foreshadowed the future. FDE, ontology, Foundry, making each specific institution, making the American warfighter fight the way the American warfighter is born to fight, empowering the tenets of being free and having the ability to do creative things in the battlefield context, and then taking enterprises instead of selling them commodity parasitic software with a massive sales force, with a kind of lumbering, jargon-bearing leaders offering you steaks, dinners, and other things we shall not mention in order that you turn the value, the high-value revenue of your enterprise over to them in return for these accolades, we created direct alignment with our customers. What does that mean?

Good morning.

And then.

<unk>.

Speaker #1: Thank you both. Our next question is from Dan with Wedbush. Dan, please turn on your camera and then you'll receive a prompt to unmute your line.

Mr. Dan is we don't see.

Hello there.

Yes, great.

Look obviously, another monster quarter I'm sure you guys congrats.

Speaker #4: And then with that, actually.

Mike My question for you is.

Nope routes and team work.

Speaker #3: Mr. Dan Ives, we don't see you.

Can you just walk through just the accelerated sales cycles that you're seeing from so many companies that have gone to the boot camps by what surprised you from when they come to you at the first sort of.

Speaker #5: Hello.

Speaker #3: Oh, there you are.

Speaker #5: Yeah, great. Well, obviously another monster quarter for you guys. Congrats. So my question for you is for Alex and the team, what can you just walk through just the accelerated sales cycles that you're seeing from so many companies that have gone to the boot camps?

Contact to now actually launching deals.

Maybe you could talk about that just in terms of everything you're seeing anecdotally great. Thanks, Dan. So I think when you look at U S. Commercial we closed $1 $3 billion in TCE at six <unk> on a dollar weighted duration basis from what it was a year ago and all of those deals 83 were worth a million or more 40 or $5 million or more 21 deals with <unk>.

Speaker #5: What surprised you from when they come to you at that first sort of contact to now actually launching deals? I mean, maybe you could talk about that just in terms of everything you're seeing anecdotally.

Speaker #6: Great. Thanks, Dan. So I think we look at US commercial. We close $1.3 billion in TCV. That's 6X on a dollar-weighted duration basis from what it was a year ago.

Alex Karp: It means when our customers have a unique and tribal way of doing something, whether it's underwriting or fighting or making workers even more valuable, we put in FDE, we orchestrate an ontology, we take the tribal understanding of their business, the specific nature of their business that makes them particular and valuable and lethal, and we empower that. How do we participate in that? Unlike seemingly in the most obvious way, we are downstream from the value creation.

Million Omar I've been involved in a lot of those directly I'm feeling exactly what youre asking on the ground from customers and what's what's happening now is from the C suite across the company customers are coming to us looking to not just say, let's do a use case the customer who are having the most impact are coming to us, saying how do we deploy this across our entire organization how do we reorganized our entire organization.

Speaker #6: And of those deals, 83 were worth a million or more; 40 were $5 million or more; 21 deals were $10 million or more. I've been involved in a lot of those directly.

Speaker #6: I'm feeling exactly what you're asking on the ground from customers and what's happening now is from the C-suite across the company, customers are coming to us looking to not just say, "Let's do a use case." The customers were having the most impact are coming to us saying, "How do we deploy this across our entire organization?

Around talented and AIP and that's what's happening on the ground and we're singularly focused on delivering the value to the customers and Thats. Our go to market, how do we get the product to them and deliver them, where Ryan is really.

Alex Karp: When you see $141 or you see 77% or $63, and you ask, by the way, with really a workforce that is not growing in any way linearly proportional to that growth, and also with a sales force which is declining, which seems improbable, the reason why that's working is because we are making our clients more money, or we're making them more dominant on the battlefield, and they're paying us a subset of that. This is why these numbers are so extraordinary. The sociological and political version of this should be, wait a minute, how can we learn from this, how can we implement institutions? By the way, we have all these people talking about an AI bottle. I'll tell you what $114 proves. There is a massive part of the AI market that actually cares about value creation, and that's the part we own.

Speaker #6: How do we reorganize our entire organization around Palantir and AIP? And that's what's happening on the ground. We're singularly focused on delivering value to our customers.

Really very much on the frontline heroes.

Both how many customers approach you I think where we're seeing the biggest shift is that customers who have approached us very quickly want to move to how would I change my enterprise to express it in a way that's most valuable according to my terms in your product.

Speaker #6: And that's our go-to-market. How do we get the product to them and deliver the product?

Speaker #3: Where Ryan is really very much on the front line here is there's both how many customers approach you. I think where we're seeing the biggest shift is the customers who've approached us very quickly want to move to, "How would I change my enterprise to express it in a way that's most valuable according to my terms in your product?" And then literally want to reorg, a shorthand version that we often use is you used to have to take your company private to change the unit economics of it.

And then one in literally when a re org shorthand version that we often use as you used to have to take your company private to change the economics of it basically just like we're providing venture results high end venture results to normal investors in the last couple of years, while we're doing actually in enterprises is providing a private.

Equity like transformation in the public markets in the public space under the current leadership.

Speaker #3: Basically, just like we're providing venture results—high-end venture results—to normal investors in the last couple of years, what we're doing actually in enterprises is providing a private equity-like transformation in the public markets, in the public space, under the current leadership.

And that's essentially what they're our best and by the way. The other thing Ryan will tell you about is our newer clients have much higher expectations of us like they were like essentially I wanted to transfer transform my business I want to do it in months I want to do it in the public eye, while being in the public market, mostly not exclusively and I want you to not only do the product side.

Alex Karp: We own that part because to do this, you have to have FDE orchestration, you have to have ontology, you have to have Foundry, you have to have access to the game, and you have to have deep understanding of how to do that, and you have to have done this for a very, very long time with products. By the way, the products are getting better and better and better and better. I'll let Shyam talk about what we're doing on the battlefield to the extent that he can, but you see the very similar trajectory where we're giving America, both in industry and in government, a massive unfair advantage. You see it, like if you look at our numbers, look at how poorly Europe is doing, look how well America is doing, look how we're doing this. It's not just top line.

Speaker #3: And that's essentially what our best—and by the way, the other thing Ryan would tell you about is our newer clients have much higher expectations of us.

But also tell us how would you actually implement AI foundry ontology FTE model in our tribal knowledge to do that and.

Speaker #3: They're essentially, "I want to transform my business. I want to do it in months. I want to do it in the public eye while being in the public market, mostly not exclusively." And I want you to not only do the product side, but also tell us how would you actually implement AI, foundry ontology, FDE model, and our tribal knowledge to do that.

It's a completely different game, we used to have to beg and plead to be like when we first started talking we are begging and pleading to be at the margin of a problem that could affect a subset of the business by the way Chubb.

Alex Karp: The Rule of 114 that we have shows top line and bottom line growth that is distinctive, massive, and unique. On top of everything else, there is this issue in the US that we're all focused on at Palantir, which is what access, what portion of the GDP growth that we're blessed to have in this country, meaning GDP growth defined or helped out and bolstered by AI, what percentage of that is available to the American worker? When we're, you know, AI GDP availability for the American worker, meaning do they participate in this growth, or is it just people around this table who are getting richer and richer? You see our platform on the battlefield, as Shyam was mentioning, the people doing the coding in AIP are vocationally trained smart Americans with specific knowledge.

Speaker #3: And it's a completely different game. We used to have to beg and plead to be—when we first started talking, we were begging and pleading to be at the margin of a problem that could affect a subset of the business.

Unfortunately, I can only tell you 1% of what he is involved in but this is like exactly the same in the U S government around the world is like the things that we're sitting on and working on or like Crazy Crazy important and theyre not downstream of the problem. They are the problem and we're reshaping them.

Speaker #3: By the way, it's unfortunate you can only tell you 1% of what he's involved in. But this is exactly the same in the US government and around the world.

Thank you Beth our next question is from Mario <unk> with Bank of America Marianna. Please turn on the camera and then you'll let us take a proud company your line.

Speaker #3: It's like the things that we're sitting on and working on are like crazy, crazy important. And they're not downstream of the problem. They are the problem.

Thanks, everyone.

Speaker #3: And we're reshaping them.

Hello, I'm glad to ask yourself a couple of questions. One on commercial wine on defense our government on commercial I'd like to follow up to Dan's question and let's see if you can discuss what changed from a behavioral perspective from a customer's perspective to see this accelerate that appetite.

Speaker #1: Thank you both. Our next question is from Mariano with Bank of America. Mariano, please turn on your camera and then you'll receive a prompt to unmute your line.

Speaker #7: Afternoon, everyone. I'm going to address

Speaker #6: Hello.

Speaker #7: usual a couple of questions, one on commercial, one on defense or government. On commercial, I'd like to follow up to Dan's question. And let's see if you can discuss what changed from a behavioral perspective from a customer's perspective to see this accelerated appetite to incorporate Palantir, to not only accelerating how many customers you have, but also the existing customers go up the value chain.

Alex Karp: They don't have an—and actually, you have people on the factory floor, very same thing, people across the nation, truck drivers. Anybody with specific domain expertise is more powerful, more valuable in our product than they were yesterday. In fact, the real misalignment of AI is with people with commodity-like, high-trained elite institution, general specialists. That's just not as valuable as it was. Yes, the destructive positive destruction of capitalism is going to put that class of people, typically the class of people that also is kind of skeptical of Palantir, under enormous pressure. You know, it is our—what I see in these numbers and what I think we see in these numbers is, you know, to put it slightly over the top, yeah, we were right, you were wrong, and we are going to go very, very deep on our rightness because it is exceedingly good for America.

To incorporate valid tier two not only accelerating customer to have that all saw existing gas on our scope to go up the value chain.

And what changed internally as well we had we saw in the slide.

Like AI agents or AI SDA is like how are you incorporating tech internally to be able to accelerate and catch up with that demand and on the garden inside you.

Speaker #7: And what changed internally as well? We recently saw in a visit these AI agents or AI FDEs. How are you incorporating tech internally to be able to accelerate and catch up with that demand?

U S <unk> up 50% plus is training process and how do you think about opportunities like Goldman going forward piling up to it.

Or are you guys going to answer these questions I think I think there's the external one which is like what does it feel like that's clearly to you. The internal one is a really subtle question I don't know if you want to jump in there and then obviously should be up Sean.

Speaker #7: And on the government side, US government up 50% plus is really impressive. And how do you think about opportunities like Golden Dawn going forward piling up to this?

Opining on.

Speaker #3: Well, you guys want to answer these questions? I think that there's an external one, which is what does it feel like? That's clearly you. The internal one is a really subtle question.

Yeah, well the unitary commercial or sure yeah, I think on the external I think it's like going deeper and deeper and more and more like tangible results with customers, where there, but there is a network effect incoming like customer sharing impact that we're having an indirect impact ground with customers customers are seeing as we are continuing.

Alex Karp: It's exceedingly good for the American economy. It's as good for American workers. You know what? I really enjoy turning on TV and seeing some analysts explain why some other company is better than ours, simply because they didn't make any money on our company and probably aren't. We're just going to keep going and going and going. We're obviously not going to forecast for next year, but I would say if you're thinking about how this company is going to go, look at our ability to value create, look at our ability to create revenue on the top end, look at the unit economics of our business. If you're a technical expert in how do you evaluate business, evaluate those numbers against any other business you've ever seen and then make your decision. Yeah, I'm wildly enthusiastic. I think we're wildly enthusiastic.

Speaker #3: And I don't know. Anyone should jump in there. And then obviously, we have Shyam opine on, yeah.

Speaker #6: Yeah. Well, do you want to start with commercial or? Sure. Yeah. I think on the external, I think it's going deeper and deeper. And more and more tangible results with customers where they're—but there's a network effect incoming.

Some of what we've been doing about going deeper and deeper with the customers on that impact and I think that what we're seeing is more and more are now coming to us, saying and the ones that are the most impactful are coming to us, saying, let me note Ryan is our.

Speaker #6: Customers sharing impact that we're having and direct impact we're having with customers. Customers are seeing, as we—it's a continuation of what we've been doing, but going deeper and deeper with the customers on that impact.

As our best at being a wonderful largest cable vulgar version here.

Speaker #6: And I think what we're seeing is that more and more are now coming to us saying, and the ones that are most impactful are coming to us saying, "Let's do more."

Our clients realize the choices suck.

Basically and they've tried a lot of stuff it hasn't work and then we're in so many verticals.

Alex Karp: Thank you for those of you who stayed with us to enjoy these numbers, especially Palantir-ians who work day and night to deliver these kind of numbers.

Speaker #3: I think Ryan is our best at being a wonderful—I'll just give a vulgar version here. Our clients realize the choice is suck, basically. And they've tried a lot of stuff.

We're perfectly I would just say we're in vertical 252, and we dominate for one customer people see that.

And then they're like Oh I'll try this was some I don't know knockoff have fake thing.

Ana Soro: Thank you, Alex. We will now turn to questions from our shareholders before opening up the call. We received a few questions asking, what do you see as Palantir's unique differentiator that others may not understand?

Speaker #3: It hasn't worked. And then we're in so many verticals, we're say let's just say we're in vertical 252, and we dominate for one customer.

And then a lot of people really still don't understand that are still trying to do this long migration where <unk>.

They're going to perform as if their LMS and ontology and as if they all of them. If we are not a commodity and and then but then in the marketplace. They see the final result of someone else using ontology foundry FDA and now it's like wait a minute.

Speaker #3: People see that. And then they're like, "Oh, well, I'll try this with some, I don't know, knockoff ff half-fake thing." It's just like—and then a lot of people really still don't understand that are still trying to do this long migration where LLMs are going to perform as if they're LLMs and ontology.

[Company Representative] (Palantir Technologies): Well, Alex mentioned a bit of this here. You know, it's become fashionable, actually, for lots of companies to start hiring FDEs. The Financial Times had an article about how it's the most popular new job title. What you see is that they don't really understand it. It's just memetic. Everything Alex just said, like we build software that works, not software that ought to work. We build software for the world as it exists, not a world that never was. This ability to find what's true, that comes from the FDE. Our measure of success is not did we sell the software, it's did we solve the problem. We have built an entire software stack over two decades, downstream of creating value for our customers.

I am paying hundreds of millions of dollars and getting nothing and the person down the road I kind of look down on is way ahead of me and their unit economics are transforming overnight.

Speaker #3: And as if the LLMs were not a commodity. And then—but then in the marketplace, they see the final result of someone else using ontology, foundry, FDE.

And that just shifts the whole conversation because then we're like okay, well if you want it to work you can have to do these five things and these things are like Youre going to have to talk to Ryan and then going to have to I don't know occasionally meet with me and Youre going to have to actually allow us to come in with engineers and you're going to we're going to have to actually work on the problems that are valuable for your business and also.

Speaker #3: And now it's like, "Wait a minute. I'm paying hundreds of millions of dollars and getting nothing. And the person down the road I kind of look down on is way ahead of me.

Speaker #3: And their unit economics are transforming overnight." And that just shifts the whole conversation. Because then we're like, "Okay. Well, if you want it to work, you're going to have to do these five things.

[Company Representative] (Palantir Technologies): That led to the ontology a decade ago, more than a decade ago, which is a fundamental prerequisite to getting value out of LLMs and the enterprise. This past year, it led to AI HiveMind and AIFDE.

Look at the costs that are dragging you down by the way the cost for most businesses is not just the actual money, they're wasting that money wasted money creates an ecosystem of waste there talking to all of these vendors all the time about all these things will never work instead of solving the problem and so like and so getting the pathogens out of their business is a real issue and now they are.

Speaker #3: And these things are like you're going to have to talk to Ryan. And you're going to have to, I don't know, occasionally meet with me.

Alex Karp: The other thing which is implicit in that is the way we work pushes us to go up the chain of complexity every day. We're taking on the most painful, most integral, most valuable parts of the stack in every enterprise. It's precisely because that's the way we actually lever our ability to deploy and orchestrate FDEs. That's the way we make our product stronger. Quite frankly, that's the way we produce these numbers because the closer you are to the front line of the very complex problem that a black box was not meant to solve, cannot solve, and at this point, everyone knows it's a joke to believe it could solve, that's where you—and by the way, it's the safest position for us because this company, we will always believe that we are outsiders.

Speaker #3: And you're going to have to actually allow us to come in with engineers. And you're going to—we're going to have to actually work on the problems that are valuable for your business and also look at the costs that are dragging you down." By the way, the cost for most businesses is not just the actual money they're wasting.

Really really interested in this and so and then on the internal front I would say.

Speaker #3: That wasted money creates an ecosystem of waste. They're talking to all these vendors all the time about all these things will never work. Instead of solving the problem.

It's just we have to double down.

Speaker #3: It's like, and so getting the pathogens out of their business is a real issue. And now they're really, really interested in this. And then on the internal front, I would say it's just we have to double down.

The most important thing for US internally is with all of this success, we do not want to give up the unique attributes of talent here and somehow purchase.

Fake ways for us that our artificial for us and so making sure. We are very very close to the problem and making sure everyone. Here like if you heard our internal dialogue, it's much more like who's on the factory floor here what are we doing internally how do we make sure our products are better and better how do we make sure say Sean.

Speaker #3: The most important thing for us internally is with all the success, we do not want to give up the unique attributes of Palantir and somehow purchase fake ways for us that are artificial for us.

Alex Karp: We need to be in the place where the most valuable problem is being solved because that's the way we end up staying, solving the problem tomorrow, and the way we get paid.

Speaker #3: And so making sure we are very, very close to the problem and making sure everyone here—have you heard our internal dialogue? It's much more like, "Who's on the factory floor here?

It was a savant at going around and figuring out what the underlying tech issue is how do we making sure we have the best product team and the very very exact right fit for every single deployment across our deployments that we care about especially mission deployments, which we highly highly overvalue in terms of our time and energy and like.

Ana Soro: Thank you both. Our next question is from Dan with Wedbush. Dan, please turn on your camera, and then you'll receive a prompt to unmute your line.

Speaker #3: What are we doing internally? How do we make sure our products are better and better? How do we make sure, say, Shyam is a Savant at going around and figuring out what the underlying tech issue is?

[Analyst] (Wedbush): This one.

[Analyst] (Wedbush): Liza, I'm sure.

Speaker #3: How do we make sure we have the best product team and the very, very exact right fit for every single deployment across our deployments that we care about, especially mission deployments, which we highly, highly overvalue in terms of our time and energy? And how do you make sure Palantir stays as tribal and cultist and unique as it was 20 years ago?

How do you make sure <unk> stays as tribal and cultus and unique as it was 20 years ago, how do we double and triple down on that and how do we recruit the right people and then internally we have look we power ice repower efforts to defend America in Ukraine.

[Analyst] (Wedbush): Mr. Dan Ives, we don't see you.

Alex Karp: Hello.

[Analyst] (Wedbush): Oh, there you are.

Alex Karp: Yeah, great. Well, obviously, another month's recorder for you guys. Congrats. My question for you is, for our team, can you just walk through the accelerated sales cycles that you're seeing from so many companies that have gone to the boot camps? What surprised you from when they come to you at that first sort of contact to now actually launching deals? I mean, maybe you could talk about that just in terms of everything you're seeing anecdotally.

And with allies, but are on the frontline of all adversaries, including vis vis China.

Speaker #3: How do we double and triple down on that? And how do we recruit the right people? And then internally, we have—look, we power ICE.

And <unk>.

And we support.

At ice and where we should we've supported Israel. Okay. These are very controversial I don't know why this is all controversial, but many people find that controversial. Okay. So how do you align people to focus on these things in a way that is actually beneficial for us and our clients. These are really hard and tricky issues that we spent a lot of time, let's say as an overarching.

Speaker #3: We power efforts to defend America and Ukraine. And with allies, we're on the front line against all adversaries, including vis-à-vis China. We support— we're at ICE, and we've supported Israel.

Ryan Taylor: Great. Thanks, Dan. I think we look at US commercial. We closed $1.3 billion in TCV. That's 6x on a dollar-weighted duration basis from what it was a year ago. Of those deals, 83 were worth a million or more, 40 were $5 million or more, 21 deals were $10 million or more. I've been involved in a lot of those directly. I'm feeling exactly what you're asking on the ground from customers. What's happening now is from the C-suite across the company, customers are coming to us looking to not just say, let's do a use case. The customers where we're having the most impact are coming to us saying, how do we deploy this across our entire organization? How do we reorganize our entire organization around Palantir and AIP? That's what's happening on the ground.

Speaker #3: Okay. These are very controversial. I don't know why this is all controversial, but many people find that controversial. Okay. So how do you align people to focus on these things in a way that is actually beneficial for us and our clients?

Thing because what we found is the more we focus on our internal dynamics the better our numbers are that's why we have less salespeople and we have 77% growth and 75% of our market 121% growth in U S comp. Please tell that to some of your friends I don't even understand how they can.

Speaker #3: These are really hard and tricky issues that we spend a lot of time on. I would say, as an overarching thing, because what we found is the more we focus on our internal dynamics, the better our numbers are.

Look at these numbers and not drop.

Speaker #3: That's why we have less salespeople, and we have 77% growth and 75% of our market. 121% growth in US comp. Please tell that to some of your friends.

The key out of there a motel six and just like say.

They're bombastic numbers.

But it's but it's like internal focus.

Speaker #3: I don't even understand how they can look at these numbers and not drop the key out of their Motel 6 and just say, "You know what I mean?" They're bombastic numbers.

I'll make the mistake of trying to follow up Alex there.

Ryan Taylor: We're singularly focused on delivering the value to the customers, and that's our go-to-market. How do we get the product to them and deliver the product?

On the on the internal side with <unk>. That's why we actually originally built it with head count has grown roughly 10%, but revenue grew 63%. How are we doing that we've made our ftes wildly more productive and so much so that we decided to give it to our customers and we've started to make our customers more productive when you have a note like the the army vantage noteworthy the army's.

Alex Karp: Where Ryan is really very much on the front line here is, you know, there's both how many customers approach you. I think where we're seeing the biggest shift is the customers who've approached us very quickly want to move to, how would I change my enterprise to express it in a way that's most valuable according to my terms in your product? They literally want to reorg. A shorthand version that we often use is you used to have to take your company private to change the unit economics of it. Basically, just like we're providing venture results, high-end venture results to normal investors in the last couple of years, what we're doing actually in enterprises is providing a private equity-like transformation in the public markets, in the public space under the current leadership.

Speaker #3: But it's like internal focus.

Speaker #6: I'll make the mistake of trying to follow Alex there and just say on the internal side with AI FDE, that's why we actually originally built it.

Speaker #6: We had grown roughly 10%, but revenue grew 63%. How are we doing that? We've made our FDEs wildly more productive. And I mean, so much so that we decided to give it to our customers.

Holidaying into the Army data platform you now have in army literal army of Green suitors, who need to become proficient developers in the software and you have a generation of green suitors, whose first interaction with the software is going to be with AI ft. They are going to be Super heroes on day, one I think that it's accelerating adoption is accelerating understanding the depth.

Speaker #6: And we've started to make our customers more productive. When you have a note like the Army Vantage note, where the Army is consolidating into the Army Data Platform, you now have an army, a literal army of green suiters, who need to become proficient developers in the software.

Of adoption not just are you using it but how much of it are you really using how much of it can you understand.

Speaker #6: And you have a generation of green suiters whose first interaction with the software is going to be with AI FDE. They're going to be superheroes on day one.

And then quickly on your comment on the U S government business like yeah. The number of opportunities out there are great I can't comment on all the opportunities you mentioned, there, but whether it's NGC to the continued growth that may have been I mean, we have of course Americas involved with three conflict right now in the world from Europe, the Middle East and in our own Hemisphere, right now and then.

Speaker #6: I think it's accelerating adoption. It's accelerating understanding the depth of adoption, not just, "Are you using it?" but, "How much of it are you really using?

Alex Karp: That's essentially what our best—and by the way, the other thing Ryan would tell you about is our newer clients have much higher expectations of us. They're like essentially, I want to transform my business. I want to do it in months. I want to do it in the public eye while being in the public market, mostly not exclusively. I want you to not only do the product side, but also tell us how would you actually implement AI, Foundry, Ontology, FDE model, and our tribal knowledge to do that. You know, it's a completely different game. We used to have to beg and plead to be—like, you know, when we first started talking, we were begging and pleading to be at the margin of a problem that could affect a subset of the business.

Speaker #6: How much of it can you understand?" And then quickly on your comment on the US government business, yeah, the number of opportunities out there are great.

Things are getting a little spicy and by the way, let me say something slightly political and I'm not saying other people agree with us, but when people are attacking our soldiers for stopping fentanyl from coming to this country I want people to remember if ethanol with scaling 60000, Yale Grad. It's instead of 60000 working class people we need.

Dropping a nuclear bomb on whoever we're sending it from South America. So.

It's slightly.

And in this at balance here, we are on the side of the American average American who sometimes gets screwed because all the empathy goes to elite people and none of it goes to that people were actually dying on our streets and that's why it's like when you have an open border. It means that the average poor American earns less I know my fellow progressive believed.

Alex Karp: By the way, Shyam, you know, it's like unfortunately he can only tell you 1% of what he's involved in, but this is like exactly the same in the US government around the world. It's like the things that we're sitting on and working on are like crazy, crazy important, and they're not downstream of the problem. They are the problem, and we're reshaping them.

Having an open border is going to make things, but that's because they are actually wrapping elite people instead of the working class and the same thing in South America, we like to believe our Constitution does not give us the right to stop 60000 deaths a year of working class men and women is insane and this company this country.

Ana Soro: Thank you both. Our next question is from Mariana with Bank of America. Mariana, please turn on your camera, and then you'll receive a prompt to unmute your line.

Mariana Perez Mora: Good afternoon, everyone.

Right to stop that and I am very proud I don't know all of the efforts we're involved in but to the extent we're involved in these efforts I and most voluntary and are very proud of this.

[Analyst] (Wedbush): Hello.

Mariana Perez Mora: I'm going to do, as usual, a couple of questions, one on commercial, one on defense or government. On commercial, I'd like to follow up to Dan's question. Let's see if you can discuss what changed from a behavioral perspective, from a customer's perspective, to see this accelerated appetite to incorporate Palantir, to not only accelerating how many customers you have, but also existing customers go up the value chain. What changed internally as well? We recently saw in a visit these AI agents or AI FDEs, like how are you incorporating tech internally to be able to accelerate and catch up with that demand? On the government side, US government up 50% plus, it's really impressive. How do you think about opportunities like Golden Dawn going forward piling up to this?

Youre here.

Thank you.

Alex its always when you have a lot of individual investors on the line is there anything you'd like to Sandy funding for me on the call.

We're rocking along please.

Please turn on the conventional TV and see how unhappy those that didn't invest in us are.

And you'll get some popcorn they're crying.

We are every day, making this company better and we're doing it for this nation for Allied countries and.

Also for <unk>.

What I really like the term retail investors, how about same people, who put up their own money and fight for us and by the way you are fighting for the right side of what should work in this country meritocracy lethal technology vis vis adversaries.

Alex Karp: Well, you guys want to answer these questions? I think there's the external one, which is like, what does it feel like? That's clearly you. The internal one is a really subtle question. I don't know, I want you to jump in there. Obviously, if you have Shyam, opine on. Yeah.

<unk> that spread GDP to working class women and men and women by making their value creation higher and by the way Your bank account and thank you for that.

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

[Analyst] (Wedbush): Yeah. Well.

Alex Karp: Do you want to start with commercial or?

Ryan Taylor: Sure. Yeah. I think on the external, I think it's like going deeper and deeper and more and more tangible results with customers where they're, well, there's a network effect incoming, like customer sharing impact that we're having and direct impact we're having with customers. Customers are seeing as we, you know, it's a continuation of what we've been doing, but going deeper and deeper with the customers on that impact. I think that what we're seeing is more and more are now coming to us saying, and the ones that are most impactful are coming to us saying, let's do more.

Alex Karp: Ryan is our best at being a wonderful—I'll just give a vulgar version here. You know, our clients realize the choices suck, basically. They've tried a lot of stuff. It hasn't worked. We are in so many verticals. Sales just say we are in vertical 252, and we dominate for one customer. People see that. They are like, Oh, well, I'll try this with some, I don't know, knockoff, half-fake thing. You know, it's just like, you know, a lot of people really still don't understand and are still trying to do this long migration where LLMs are going to perform as if they're LLMs and ontology and as if the LLMs were not a commodity. In the marketplace, they see the final result of someone else using ontology, Foundry, FDE. Now it's like, Wait a minute, you know, I'm paying hundreds of millions of dollars and getting nothing.

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Alex Karp: The person down the road I kind of look down on is way ahead of me, and their unit economics are transforming overnight. That just shifts the whole conversation because we are like, Okay, well, if you want it to work, you're going to have to do these five things. These things are like, You're going to have to talk to Ryan, and you're going to have to, I don't know, occasionally meet with me, and you're going to have to actually allow us to come in with engineers. We are going to have to actually work on the problems that are valuable for your business and also look at the costs that are dragging you down. By the way, the cost for most businesses is not just the actual money they're wasting.

Your project today.

Breaking news President Trump just now commencing a security roundtable with law enforcement and administration officials at the White House. The President is touting the homeland Security Task Force he established on the <unk>.

First day of his second term President Trump, calling the task force quote a hell of a group protecting Americans against cartels drug traffickers and criminals as we monitor this event, there's visible security things like weapons and barriers and tanks and then that's the security that you don't see data and intelligence.

Alex Karp: That wasted money creates an ecosystem of waste. They are talking to all these vendors all the time about all these things that will never work instead of solving the problem. Getting the pathogens out of their business is a real issue. Now they are really, really interested in this. On the internal front, I would say, you know, we have to double down. The most important thing for us internally is, with all this success, we do not want to give up the unique attributes of Palantir and somehow purchase fake ways for us that are artificial for us. Making sure we are very, very close to the problem and making sure everyone here—like if you heard our internal dialogue, it's much more like, Who's on the factory floor here? What are we doing internally? How do we make sure our products are better and better?

Moving and securing that massive volume of information at the very same time that American businesses are ramping up their use of artificial intelligence data that requires a huge effort to unclog and speed up the nation's data Super highways. My next guests are working together to do exactly that joining me now on our Fox nephrotic process.

Volunteer co founder and CEO, Alex Karp and he is here with Kate Johnson, President and CEO of lumen talented women just announced an expanded multi year multimillion dollar partnership to deploy pallet tariffs AI to fast track and enhance lumen digital networking infrastructure, Kate how to get hooked up with best Guy, Yeah, well through and.

Alex Karp: How do we make sure, say, Sean, you know, who's a savant at going around and figuring out what the underlying tech issue is? How do we make sure we have the best product team and the very, very exact right fit for every single deployment across our deployments that we care about, especially mission deployments, which we highly, highly overvalue in terms of our time and energy? How do you make sure Palantir stays as tribal and cultist and unique as it was 20 years ago? How do we double and triple down on that? How do we recruit the right people? Internally, we have—look, we power ICE. We power efforts to defend America and Ukraine. With allies, we're on the front line of all adversaries, including vis-à-vis China. We support—we're at ICE, and we've supported Israel. Okay. These are very controversial.

Incredible partnership actually.

Yeah, we're teaming up and deliver the Holy Grail for businesses. It's all of that real time intelligence to need two things to do that you need to be able to move huge amounts of data from anywhere to anywhere quickly and securely effortlessly and I thought lumen does that's our business.

And you need once you have that data you need to be able to make sense of it and that's the AI platform on a pound here have Alex This was a reported 200 million dollar deal.

And am I right on that.

We don't really comment on the specifics of deals that I would say is.

It is a formative deal for us.

Alex Karp: I don't know why this is all controversial, but many people find that controversial. Okay. How do you align people to focus on these things in a way that is actually beneficial for us and our clients? These are really hard and tricky issues that we spend a lot of time—I would say as an overarching thing—because what we found is the more we focus on our internal dynamics, the better our numbers are. That's why we have fewer salespeople, and we have 77% growth in 75% of our market, 121% growth in US comp. Please tell that to some of your friends. I don't even understand how they can look at these numbers and not drop the key out of their Motel 6 and just say, you know what I mean? They're bombastic numbers. It's like internal focus.

Ryan Taylor: I'll make the mistake of trying to follow Alex there and just say, on the internal side with AIFDE, that's why we actually originally built it. You know, headcount has grown roughly 10%, but revenue grew 63%. How are we doing that? You know, we've made our FDEs wildly more productive. I mean, so much so that we decided to give it to our customers, and we've started to make our customers more productive. When you have a note like the Army Advantage note where the Army's consolidating into the Army data platform, you now have an army, literal army of green suiters who need to become proficient developers in the software. You have a generation of green suiters whose first interaction with the software is going to be with AIFDE. They're going to be superheroes on day one.

Ryan Taylor: I think it's accelerating adoption, it's accelerating understanding the depth of adoption, not just are you using it, but how much of it are you really using, how much of it can you understand? Quickly on your comment on the US government business, like, yeah, the number of opportunities out there are great. I can't comment on all the opportunities you mentioned there, but whether it's NGC2, the continued growth of MAVEN, I mean, we have, of course, America is involved with three conflicts right now in the world from Europe to the Middle East and in our own hemisphere right now. Things are getting a little spicy. After.

Alex Karp: By the way, let me say something slightly political. I'm not saying other people agree with this. When people are attacking our soldiers for stopping fentanyl from coming to this country, I want people to remember, if fentanyl was killing 60,000 Yale grads instead of 60,000 working-class people, we'd be dropping a nuclear bomb on whoever was sending it from South America. It's slightly like we in this at Palantir, we are on the side of the average American who sometimes gets screwed because all the empathy goes to elite people, and none of it goes to the people who are actually dying on our streets. That's why it's like when you have an open border, it means that the average poor American earns less.

Alex Karp: I know my fellow progressives believe having an open border is going to make things, but that's because they're actually repping elite people instead of the working class. The same thing in South America, where it's like, you know, to believe our constitution does not give us the right to stop 60,000 deaths a year of working-class men and women is insane. This country is right to stop that. I am very proud. I don't know all the efforts we're involved in, but to the extent we're involved in these efforts, I and most Palantirians are very proud of this. You're here.

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

Alex Karp: We're rocking along. Please turn on the conventional television and see how unhappy those that didn't invest in us are. Get some popcorn. They're crying. We are every day making this company better, and we're doing it for this nation, for allied countries, and also for—and I never really liked the term retail investors. How about seeing people who put up their own money and fight for us? By the way, you know, you are fighting for the right side of what should work in this country: meritocracy, lethal technology vis-à-vis adversaries, products that spread GDP to working-class women and men and women by making their value creation higher. By the way, your bank account. Thank you for that.

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

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[Company Representative] (Fox Business): Breaking news: President Trump just now commencing a security roundtable with law enforcement and administration officials at the White House. The president is touting the Homeland Security Task Force he established on the first day of his second term. President Trump calling the task force, a hell of a group protecting Americans against cartels, drug traffickers, and criminals. As we monitor this event, there's visible security, things like weapons, barriers, and tanks. Then there's the security that you don't see: data and intelligence moving and securing that massive volume of information at the very same time that American businesses are ramping up their use of artificial intelligence data. That requires a huge effort to unclog and speed up the nation's data superhighways. My next guests are working together to do exactly that.

[Company Representative] (Fox Business): Joining me now on a Fox Business exclusive, Palantir co-founder and CEO Alex Karp, and he is here with Kate Johnson, president and CEO of Lumen. Palantir and Lumen just announced an expanded multi-year, multi-million-dollar partnership to deploy Palantir's AI to fast-track and enhance Lumen's digital networking infrastructure. Kate, how did you get hooked up with this guy?

Kate Johnson: Yeah, well, through an incredible partnership, actually. You know, we're teaming up to deliver the Holy Grail for businesses. It's all about real-time intelligence. You need two things to do that. You need to be able to move huge amounts of data from anywhere to anywhere quickly, securely, effortlessly. That's what Lumen does. That's our business. Once you have that data, you need to be able to make sense of it. That's the AI platform that Palantir has.

[Company Representative] (Fox Business): Alex, this was a reported $200 million deal. Am I right on that?

Alex Karp: You know, we do not really comment on the specifics of deals. What I would say is it is a formative deal for us.