Palantir Technologies Inc. (PLTR.US) held its FY25Q4 earnings call, reporting a staggering 70% year-over-year surge in total revenue for the fourth quarter, marking the company's highest growth rate since its initial public offering. Full-year revenue for fiscal 2025 climbed 56% to $4.475 billion. Adjusted operating profit for Q4 reached $798 million, yielding a robust profit margin of 57%. The full-year adjusted operating profit stood at $2.3 billion, with a 50% margin. Adjusted free cash flow for the year hit $2.3 billion, representing an 82% increase compared to the previous year. Total Contract Value (TCV) achieved a historic peak in the fourth quarter, reaching $4.3 billion, a massive 138% year-over-year jump. Customer count grew by 34% to 954. Remaining Contract Value (RCV) experienced explosive growth, increasing by 105% year-over-year to $11.2 billion. Company executives described the quarter's performance as a "historic breakthrough," demonstrating that rapid growth and exceptional profitability can be achieved simultaneously. The company stated it has pioneered a "unique category," positioning itself as the only enterprise software company deliberately focused on deploying AI models into large-scale production to generate tangible, real-world value. The market is entering a phase that distinguishes between "providing democratized access to cognition" and "leveraging the fruits of democratization to achieve scaled empowerment." Palantir is focused on the latter, helping clients evolve from "AI adopters" into "AI-native enterprises," thereby translating execution into exponential advantage. True value creation, the company argued, occurs at the top of the technology stack (through AI, ontology, etc.) rather than at the bottom. The company has achieved an extraordinary impact on revenue and profit with relatively modest investment, fundamentally disrupting traditional business models. Regarding guidance, for Q1 2026, the company anticipates revenue between $1.532 billion and $1.536 billion, with adjusted operating income projected to be between $870 million and $874 million. For the full 2026 fiscal year, the company expects a revenue midpoint of $7.19 billion, implying 61% year-over-year growth. U.S. commercial business revenue is forecast to surpass $3.14 billion, growing by at least 115%. Full-year 2026 adjusted operating income is projected to be between $4.26 billion and $4.28 billion, while adjusted free cash flow is expected to range from $3.925 billion to $4.125 billion. Q&A Q: What is the outlook for international business? Do you anticipate a reacceleration in the near term, for instance, due to European rearmament? A: Operating outside the United States presents significant challenges; the company currently lacks sufficient bandwidth to handle complex matters abroad given the immense demand domestically. The core issue lies in whether allied nations can recognize the necessity of purchasing vastly superior products over domestic alternatives, a complex situation given their tendency to favor homegrown solutions. More broadly, it's essential to examine whether their procurement systems can accommodate purchasing the best available products. Observations indicate widespread adoption in Middle Eastern Arab nations, Israel, and China, while adoption is generally lacking in Canada, Scandinavia, and Europe. The real global difficulty is justifying investment in more complex endeavors if Palantir must bear the primary burden of this work. For example, France has the clearest understanding of the problem but struggles with solutions, particularly when they involve purchasing American products. Furthermore, the company holds its products to a "magical" standard, not merely "the best," having already delivered transformative projects on the frontlines that alter perceptions of U.S. deterrence. Q: On the commercial side, with the market viewing 2026 as a "show me year" for AI, are you observing shifting dynamics among clients or partners? Has the previously mentioned enterprise hesitation changed? A: Our entire commercial market entry strategy is centered on rapidly demonstrating and delivering tangible value impact directly to clients, leading to engagements starting at larger scales and accelerating faster. We closed 61 deals valued over $10 million, a direct result of the impact we deliver. In the U.S. market, clients have seen validation points from other companies, extending beyond single use cases. Conversations two years ago were often skeptical about feasibility, whereas now they revolve around, "I've heard you can do it, but I'm unsure where you fit." Palantir is not a single-solution company; people know it works, works effectively, and works quickly. Many clients now approach us with the attitude, "I know it works, what must I do to accelerate?" On the less positive side, while some still express uncertainty about how or why it would work, such instances have diminished significantly. We are better positioned than ever to shape our partnerships, with some clients even reorganizing their structures to integrate our products. We are helping to shape the foundation for execution, with this year's goal being to expand these deep collaborations, focusing more on density within the client base rather than sheer quantity. Q: Regarding the defense sector, beyond Shipbuilding OS, are there opportunities to develop an Ammunition or Missile OS, and what other application areas exist? A: Re-industrialization has been a key focus over the past two to three years, starting in defense but expanding to pharmaceuticals, data centers, etc., creating a ripple effect. ShipOS originated with submarine fleets, but we are now being asked to assist with various weapon systems, including fighter jets, surface vessels, drones, and the ammunition itself, encompassing both production and maintenance. Lethality and combat power delivery require integrated capabilities spanning from the factory to the foxhole. Project Maven represents a massive investment that transformed how joint forces operate on the battlefield; ShipOS and its core "warp speed" component aim to revitalize factory floors and provide the Pentagon with an integrated view through this system. We are receiving numerous inquiries about replicating similar approaches within other government branches. Q: In both commercial and government defense sectors, are you seeing budgets increasingly allocated to you? Specifically, are you being tasked with broader responsibilities beyond initial specific tasks, and is Palantir capturing a growing share of the budget? A: A close examination of our data reveals an almost inexplicable revenue surge, whereas the growth in customer count is less surprising. This is because serious clients entrust us with their most critical problems, and we generate immense value in return. It's not merely about being assigned more tasks, but about solving them in a manner that is decisive for the enterprise, commanding higher compensation. Furthermore, there exists a perception (rightly or wrongly) that our competitors are not particularly strong. We maintain close, deep, intensive, and direct relationships with leaders across nearly every industry. These are far from simple transactional relationships; we provide high-value products and are compensated accordingly. Our 127% rule, 93% growth in the U.S. market, and 61% annual guidance serve as testament to this. We deliver on the frontlines and are handsomely rewarded for it.