Customer concentration
A limited number of customers account for a substantial portion of revenue, so lost renewals can materially affect results.
- Scope
- Top customers and large multi-year accounts
- Materiality
- high
Palantir Technologies Inc.
Palantir Technologies Inc. builds software platforms that help organizations integrate data, decisions, and operations at scale. Its core products include Gotham, Foundry, Apollo, and the Artificial Intelligence Platform (AIP), which are used by government agencies and commercial enterprises across the United States and internationally.
32,2 %
82,4 %
36,3 %
+56,2 %
7.11
7.11
| % | |
|---|---|
| Government software platforms | 54% Software used by defense, intelligence, and other public-sector organizations for mission operations and analytics. |
| Commercial software platforms | 46% Software sold to non-government enterprises for data integration, analytics, and operational workflows. |
| Palantir Cloud subscriptions | 55% Hosted subscriptions that provide access to Palantir platforms in the company's cloud environment. |
| On-Premises software subscriptions | 35% Subscriptions deployed in customer environments with ongoing operating and maintenance services. |
| Professional services | 10% Implementation, bootcamps, and other services that support customer adoption and deployment. |
Palantir sells to government agencies and commercial institutions that need to unify large, complex datasets and...
- Governmentprimary
U.S. and non-U.S. government agencies buying Gotham and related mission software for defense, intelligence, and public-sector operations.
- Commercialprimary
Non-government enterprises buying Foundry, AIP, and Apollo to manage data, automate workflows, and deploy software securely.
- Large existing accountsprimary
Long-tenured customers that expand usage across departments and use cases, driving repeat purchases and broader deployments.
- Industry operatorssecondary
Users in manufacturing, energy, healthcare, utilities, and logistics that apply the platforms to day-to-day operations.
Palantir generates most of its revenue in the United States, with the remainder coming from international customers...
- •74% of 2025 revenue came from U.S. customers
- •26% of 2025 revenue came from customers outside the U.S.
- •Government customers represented 54% of 2025 revenue
- •Commercial customers represented 46% of 2025 revenue
- •International sales add regulatory and contracting complexity
Palantir's strategy centers on expanding deployments within existing customers while winning new accounts in both...
01
Deepen existing customer deploymentsshort-term
Revenue growth depends heavily on expanding usage within long-tenured accounts.
02
Expand commercial adoptionmedium-term
Commercial customers broaden the addressable market beyond government contracts.
03
Win secure AI workloadsmedium-term
AIP can differentiate the platform stack in production AI and agentic workflows.
04
Maintain deployment speed and reliabilitylong-term
Ease of adoption and continuous delivery are key competitive factors in software sales.
Palantir faces customer concentration, long and unpredictable sales cycles, and dependence on renewals and expansions...
Government contracting and budget risk
A meaningful share of revenue comes from public-sector customers, which depend on procurement timing and fiscal priorities.
- Scope
- Government segment
- Materiality
- high
AI, privacy, and security liability
Issues with machine learning or generative AI functionality, or with data protection compliance, could damage reputation or create claims.
- Scope
- AIP and data-intensive deployments
- Materiality
- high
Sales cycle and conversion risk
The company runs pilots and bootcamps that may not lead to future contracts, increasing upfront effort without guaranteed returns.
- Scope
- Commercial and government new business
- Materiality
- medium
Third-party infrastructure dependence
Palantir relies on AWS, Microsoft Azure, and other external technology providers to host or operate parts of its platform stack.
- Scope
- Cloud services and internal operations
- Materiality
- medium
Revenue recognition under ASC 606
Subscription, O&M, and professional services arrangements
Seasonality and quarterly fluctuation
Revenue, operating income, and cash flow
Stock-based compensation
Operating income and adjusted operating margin
Contract estimates and collectability
Revenue and receivables
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: 11/08/2026