Palantir Technologies Inc. - Class A Common Stock

Management expects to recognize approximately 43% of remaining performance obligations as revenue within the next 12 months and 36% over the following 13 to 36 months. — target: 43% over the next 12 months; 36% over the subsequent 13 to 36 months

Management expects to continue repurchasing Class A common stock from time to time under the existing authorization, subject to business and market conditions. — target: Up to $1.0 billion authorized; approximately $880.0 million remained available as of September 30, 2025

Management has committed to minimum cloud-hosting expenditure under an amended third-party agreement. — target: At least $5.6 billion total spend; annual minimum commitments of $268 million to $979 million (+3 more commitments)

Management expects continued expansion of customer reach across commercial and government sectors. (+4 more commitments)

Management plans to continue investing in AI and related platform capabilities, while acknowledging that adoption and profitability are not assured. (+3 more commitments)

The balance-sheet moat strengthened, although the prior extracted comparison used six-month figures that are not available in this quarterly filing. At March 31, 2026, Palantir held $8.026 billion of cash, cash equivalents, and marketable securities, up from $7.177 billion at December 31, 2025, had no debt, and generated $899 million of operating cash flow in the quarter versus $310 million a year earlier. (2 expanding)

Government revenue remained the larger business segment, but its share declined as commercial revenue grew slightly faster. Nine-month government revenue rose 50% year over year, while its revenue share fell from approximately 55% to 54.5%. The latest quarter was also strong, with revenue up 55% year over year. (5 expanding)

Government remained the larger customer segment, but its share declined as commercial revenue grew faster. Government revenue increased 76% year over year, from $486.963 million to $858.410 million, while its share fell from approximately 55% to 53%. Contribution margin improved from 62% to 73%. (3 expanding)

The regulatory and security moat remains strong rather than materially changing. Palantir continues to serve classified government programs and maintain government-related authorizations and clearance requirements. These barriers continue to support entry protection, although the company also warns that compliance, security, AI, privacy, and procurement rules are becoming more complex and costly. (1 stable, 1 expanding across 1 engine)

The balance-sheet position remained strong, but the reported cash and short-term Treasury balance was lower than the prior-year comparison implied by the earlier extracted finding. At December 31, 2025, Palantir held $7.2 billion of cash, cash equivalents, and short-term U.S. Treasury securities, had no debt, and generated $2.1 billion of operating cash flow during FY2025. This is strong liquidity, but the previously extracted $9.2 billion and first-half 2026 operating cash flow figures are not comparable to this FY2025 filing. (1 shifted)

GAAP operating margin expanded to 13% in Q1 2024 from 1% in Q1 2023, as operating income rose to $80.9 million from $4.1 million. The improvement is a clear positive operating-leverage inflection, although the filing does not provide enough quarters to prove a sustained multi-quarter acceleration. (5 accelerating across 5 signals)

Government revenue reached $408.3 million in Q3 2024, growing 33% year over year, compared with 24% growth for the first nine months. The latest quarter shows clear acceleration, although the longer-period figure is affected by government procurement timing. (1 accelerating, 2 decelerating, 1 new trend, 1 steady across 5 signals)

Growth is concentrated in the United States, which produced 81% of quarterly revenue and 80% for the first half. U.S. revenue grew 99% over the latest trailing twelve-month period, while international revenue share declined, so near-term growth is primarily domestic rather than geographic diversification. — U.S. revenue: U.S. trailing-twelve-month revenue grew 99% YoY to $4.8 billion

GAAP gross margin improved from 80% to 87% year over year, while cost of revenue increased only 25% against 85% revenue growth. However, third-party cloud hosting expense rose by $39 million and the company added a $5.6 billion minimum cloud-spend commitment. Current evidence therefore shows improving unit economics, but future compute-cost discipline is an important monitoring point. (2 accelerating, 1 reversing, 1 decelerating, 1 steady across 5 signals)

Palantir explicitly expects broader platform access across commercial and government organizations to accelerate. This is a newly identified expansion initiative, but the filing does not quantify the addressable market or provide a prior-quarter adoption series. (5 new trend across 5 signals)

Government exposure remains substantial but did not worsen in mix: government revenue was 54% of 2025 revenue versus 55% in 2024. However, U.S. government revenue rose to $1.9 billion from $1.2 billion, and management highlights the 2025 federal shutdown, possible budget reductions, changing priorities, continuing resolutions, and procurement delays. Absolute exposure increased even though the revenue mix improved slightly. (4 intensifying, 1 easing, 5 high-severity)

The risk is intensifying in absolute dollars. Third-party cloud hosting costs increased by $58.4 million year over year during the first nine months, and by $29.5 million in the latest quarter. Gross margin improved to 82% in Q3 from 80%, but was unchanged at 81% for the nine-month period. The company also committed to at least $1.95 billion of cloud spending over ten years, with a $170.2 million minimum for the next contract year. Thus, current margin performance is strong, but the rising cost base and long-term usage commitment increase downside if AI or cloud demand slows. (2 intensifying, 2 easing)

Receivables concentration improved versus the prior assessment for Customer I, which declined from 27% to 16% of accounts receivable. However, a second customer represented 11%, so the two disclosed customers together represented at least 27% of receivables. Accounts receivable increased sharply from $575 million at year-end 2024 to $1.006 billion at September 30, 2025, increasing the amount exposed to collection delays. Revenue concentration also remains meaningful: the top three customers represented 16% of nine-month revenue, unchanged from the prior supplied figure. Overall, concentration is easing modestly, but collection exposure has increased. (1 easing, 1 stable)

The reported remaining deal value increased sharply to $11.2 billion from $5.4 billion, but the filing explicitly states that it assumes all customer options are exercised and no contracts are terminated. Only $4.1 billion qualifies as noncancelable remaining performance obligations, and many contracts remain cancellable. The larger headline pipeline therefore increases potential upside but also increases the gap between reported deal value and enforceable revenue. (2 intensifying, 1 easing, 2 stable)

The risk is intensifying. Stock-based compensation rose 19% year over year to $487.6 million for the first nine months, equal to roughly 48% of net income attributable to common stockholders and about 16% of revenue. Unrecognized compensation remained substantial: $947.1 million for RSUs, plus $429.8 million for options and $151.3 million for SARs. Basic weighted-average shares increased 5.9% year over year, while diluted shares increased 5.7%. The company repurchased only $55.8 million of stock, far below the scale of stock-based compensation. (4 intensifying)