Palantir just handed investors a headline quarter, and yes, AI was the reason. Q4 revenue jumped 70% year‑over‑year to $1.407 billion, full‑year revenue rose 56% to $4.475 billion, and management sounded like they’d had one too many espresso shots.
AI finds religion: Palantir leaned into AI hard, and customers opened their wallets.
Why this matters: The numbers are big, real, and AI‑shaped. Palantir has gone from niche government software to a full‑blown enterprise AI platform that customers are embedding. Contracts are getting longer and deeper - duration‑weighted TCV surged 166% - which means stickier revenue and fatter lifetime value. Cash flow is insane too: adjusted free cash flow for the year was north of $2.2B, and the company sits on about $7.2B in cash.
What's the catch?
It's not all sunshine and monopoly chips. Nearly 80% of revenue comes from the U.S., and international commercial growth is a snail (8% YoY in Q4). Palantir is also reinvesting aggressively - adjusted operating expenses rose 34% as it hires top engineers and builds AIP features - so GAAP metrics and stock‑based comp will temper the fairy tale for some investors. Plus, bigger customers now account for more revenue, which is great until one decides to leave.
Bottom line: Palantir’s AI momentum is the real deal, and it’s translating into cash and contracts. Just don’t ignore the geographic concentration and the hefty investment sprint that’s currently powering the rocket.
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