Palantir Technologies achieved significant performance growth in the second quarter of 2025, with the US commercial sector performing particularly well, achieving a year-on-year growth of 93%, surpassing the 50% year-on-year growth of the US government business. Overall, US business revenue accounted for 70% of the company's total revenue, surpassing $100 billion in quarterly revenue for the first time. The company emphasized its leading position in the enterprise artificial intelligence field and the profound impact of its software on creating customer value, while also pointing out the limitations of large language models in practical applications. In addition, Palantir reported record transaction value and annual contract value, as well as large-scale contract expansions with existing customers, highlighting its competitive advantage in the AI field.

The technology application of Palantir has significantly improved efficiency and effectiveness in multiple industries, including reducing Citibank's customer onboarding time from 9 days to just seconds, helping Fannie Mae shorten the discovery of mortgage fraud from months to seconds, saving millions of dollars in losses in the U.S. housing market. Nebraska Medicine achieved a 2100% increase in discharge lounge utilization through the use of Palantir's technology, equivalent to adding an additional medical unit. Lear Corporation supported 11,000 users and 175 use cases in the automotive industry within 2.5 years through Palantir's Foundry and AIP, gaining a first-mover advantage. Additionally, Palantir has seen significant growth in its business in commercial and government sectors, including signing a 10-year, up to $10 billion contract with the U.S. Army, as well as multiple important contracts in space systems and intelligence, defense sectors. These achievements demonstrate Palantir's determination and ongoing progress in AI production impact and solving critical customer challenges.

In the past 20 years, through continuous efforts, the company has established a unique advantage and leading position, especially in the integration of artificial intelligence (AI) with enterprise software. AI is not just software that customers use, but the foundation on which customers build their own software. Through foundational investments in ontology and infrastructure, the company is able to meet current and future AI needs, accelerating the realization of AI value in enterprises. In addition, the application of AI not only improves work efficiency, but also gives frontline workers more 'superpowers'. From healthcare to manufacturing, AI is changing the way we work and increasing productivity. Especially in the shipbuilding industry in the United States, facing competition from China, the application of AI technology is helping the United States solve its maritime industrial base issues and drive industrial upgrades.

The company achieved a historic breakthrough in the second quarter, with quarterly revenue exceeding 10 million for the first time, accelerating year-on-year growth, exceeding expectations by nearly 1000 basis points to reach 1.885 billion, an increase of 50% year-on-year. The full-year 2025 revenue forecast has been adjusted to 4.146 billion, a year-on-year increase of 45%, setting a new record for annual revenue guidance. In particular, commercial revenue growth in the United States was significant, reaching at least 85%, and government business also achieved a 53% year-on-year growth. At the same time, the adjusted operating profit margin has significantly increased, cash flow is strong, customer numbers have increased by 43%, and top customers' revenue in December increased by 30%.

In the second quarter, commercial revenue saw significant growth, with commercial revenue in the United States increasing by 95% year-on-year, while international commercial revenue slightly decreased; government revenue increased by 49%. Commercial TCV bookings reached 1.1 billion, a 180% year-on-year increase. Both government and commercial sectors showed strong market demand and customer growth. It is expected that strategic commercial contract revenue will change in the next quarter.

Driven by AI, the government software sector has achieved significant growth, with government revenue increasing by 53% year-on-year to reach $426 million, particularly driven by the continued execution of existing projects and new incentives. The strong performance of the UK market also contributed to a 37% year-on-year increase in second-quarter national government revenue to $127 million. Total bookings reached a historical high of $2.3 billion, a 140% year-on-year increase. Additionally, total remaining contract value increased by 65% year-on-year to reach $7.1 billion, while remaining performance obligations amounted to $2.4 billion, a 77% year-on-year increase. Despite a 9% increase in adjusted operating costs, the company remains committed to investing in top technology talent and product lines to maintain its profit goals. In terms of cash flow, the second quarter generated $539 million in operating cash and $569 million in adjusted free cash flow, demonstrating a healthy financial position.

In the financial outlook for the third quarter of 2025, Palantir Company expects revenue to reach 10.83 to 10.87 billion dollars, with adjusted operating income of 4.93 to 4.97 billion dollars. The full-year revenue forecast has been raised to 41.42 to 41.5 billion dollars, with U.S. commercial revenue guidance raised to over 13.02 billion dollars, an increase of at least 85%. Additionally, adjusted operating income and free cash flow guidance have been increased to 19.12 to 19.2 billion dollars and 18 to 20 billion dollars respectively. Furthermore, the company emphasizes providing significant advantages to U.S. and international customers through efficient operations and value-driven products while not compromising core values, especially in the revolutionary application of AI technology, driving the improvement of AI skills for blue-collar workers and increasing labor income.

Palantir provides frontline workers and decision makers with superpowers through AI technology, such as helping nurses save time, improving factory efficiency, and training workers to manage high-tech equipment through AI. The company has also created the American Technology Scholarship, aimed at finding, training, and empowering blue-collar workers and self-taught technology talents who can innovate and apply AI to change businesses.

In the discussion, the company's senior management detailed Palantir's refusal of the traditional software sales model and instead choosing a strategy of relying on the product's own value and existing customer word-of-mouth promotion. It emphasized the company's method of driving growth through creating significant value and gaining user trust, as well as how to use successful cases of existing customers to attract new customers. Additionally, it mentioned the company's expectation of achieving tenfold revenue growth in the US market within the next five years, as well as its streamlined and efficient strategy for building the sales team.

American corporate customers are seeking ways to expand their business faster and more deeply, and to promote it throughout the entire enterprise. They emphasize experimentation and value creation. Compared to countries like Germany, the American market is more flexible and open. Employees within companies, due to owning more company stock, are more inclined to seek practical and effective solutions.

The discussion centered around the excitement and areas for improvement in the recent AI action plan released by the White House, as well as how to ensure attracting, retaining, and developing top talent in the fierce competition among software companies. The importance of implementing AI technology and its practical applications was emphasized, pointing out that providing meaningful problem-solving opportunities is key to attracting and retaining talent. Additionally, it was mentioned that Palantir has achieved success in talent acquisition and retention by providing opportunities for quick involvement in important projects and establishing a new, background-independent credential system.

In this conference call, the company's leadership expressed deep gratitude to investors, employees, and the team, emphasizing the process of the company's journey from a low point to success, and the team's hard work at critical moments. He specifically mentioned that the company adheres to its beliefs, is committed to promoting social progress, despite facing external criticism, but this persistence has had a positive impact on the world. At the same time, the leader also praised the spirit of cooperation within the company and the extraordinary abilities and sense of responsibility shown by employees in their actual work, saying they have changed the course of history and are proud to be the leaders of this team.