Palantir is a software company that sells platforms for integrating data, analysis, decisions and operational work. Large government agencies and commercial organizations pay for access under contracts that commonly run from one to five years. Palantir’s revenue is therefore generated primarily by contracted software use, not by selling physical equipment.
The company’s main platforms are Gotham, Foundry, Apollo and its Artificial Intelligence Platform (AIP). In its 2025 Form 10-K, Palantir says, “We build software that empowers organizations to effectively integrate their data, decisions, and operations at scale.”
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What does Palantir do?
Palantir builds software for organizations that need to bring together large, complicated data sets and use them in real operating decisions. Its platforms are designed to connect information from different systems, apply business logic and analytics, and place the resulting insight inside workflows used by employees, managers or public-sector teams.
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Palantir’s 2025 Form 10-K describes the company’s goal as integrating “data, decisions, and operations at scale.” In practical terms, the company is trying to shorten the distance between raw information and an action an organization needs to take. The software can sit across existing data sources and operational systems instead of requiring every customer to replace those systems.
Palantir describes four principal platforms. The descriptions below are the company’s own characterization of their roles, not an independent product test.
What are Gotham, Foundry, Apollo and AIP?
| Platform | Palantir-described role | Typical organizational purpose |
|---|---|---|
| Gotham | Platform associated with Palantir’s government roots and government customers. | Help public-sector organizations connect information and support mission or operational decisions. |
| Foundry | Foundational data-operations platform spanning data management, logic, analytics and workflow development. | Give commercial or government teams a shared environment for organizing data and turning analysis into processes. |
| Apollo | Part of Palantir’s software platform portfolio. | Support deployment and operation of Palantir software across customer environments. |
| Artificial Intelligence Platform (AIP) | Adds generative-AI capabilities, including connections to third-party large language models and tools for building and governing AI-enabled workflows. | Let organizations incorporate AI into controlled business or mission processes rather than treating a chatbot as a stand-alone product. |
The products can be used together. For example, a customer might use Foundry to organize operational data, AIP to build an AI-enabled workflow, and Apollo to run the software in the customer’s required environment. That example explains how the portfolio fits together; it does not establish that every customer buys every platform.
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Palantir describes its Ontology as a shared representation linking data, logic and actions. In plain language, it is an attempt to represent an organization’s important objects, relationships, rules and permissible actions in one connected model.
Instead of showing a data table separately from the process that uses it, an ontology-based approach can associate a real-world object—such as an asset, order, supplier or case—with the data about that object, the calculations applied to it and the workflow a worker follows. The intended result is a common operational language for analysts, software and decision-makers.
The concept should not be treated as unique to Palantir without independent evidence. It is best understood as the company’s way of describing how its platforms connect an organization’s data model to the workflows and actions used to run the organization.
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Who are Palantir’s customers?
Palantir reports two broad customer groups: government organizations and commercial businesses. Government work reflects the company’s origins and remains a major part of revenue, while commercial customers use the platforms for business operations and analysis.
The customer mix changes by reporting period. Palantir’s 2025 figures are full-year results; the 2026 figures below cover only the six months ended June 30, 2026, so they should not be read as a forecast for the entire year.
| Reporting period | Government revenue share | Commercial revenue share | U.S. revenue share | Revenue outside the U.S. |
|---|---|---|---|---|
| Full year 2025 | 54% | 46% | 74% | 26% |
| Six months ended June 30, 2026 | 52% | 48% | 80% | 20% |
For full-year 2025, Palantir reported $4.5 billion in revenue. Government customers supplied 54% and commercial customers 46%. U.S. customers supplied 74%, leaving 26% from customers outside the United States.
For the first half of 2026, the reported mix was 52% government and 48% commercial. The geographic mix in that interim period was 80% U.S. and 20% non-U.S. Because the periods differ, comparing the percentages requires care: the 2025 numbers cover twelve months, while the 2026 numbers cover six.
Government customers
Government customers can include national, regional or other public-sector organizations. Gotham is the platform most closely associated with Palantir’s government roots, although the company’s broader portfolio can also be used in government settings.
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Commercial customers
Commercial customers use Palantir’s software in business settings. Foundry is positioned as the foundational data-operations platform for managing data, logic, analytics and workflows, while AIP is intended to add governed generative-AI capabilities.
The commercial category covers organizations with different industries, sizes and operating models. A commercial revenue percentage therefore describes who paid Palantir, not a single standardized product package or uniform customer experience.
How does Palantir make money?
Palantir says, “Our customers pay us to use the software platforms we have built.” That sentence from the 2025 Form 10-K captures the basic model: organizations enter contracts that give them access to Palantir’s software and related capabilities, and Palantir records revenue as it provides that access.
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- The customer receives access to the contracted platform or platforms. The scope can involve Gotham, Foundry, Apollo, AIP or a combination, depending on the agreement.
- Palantir recognizes revenue over the contract period. The company says revenue is generally recognized ratably over each contract term, meaning the accounting typically spreads the contract value across the period of service instead of recording the entire amount on the signing date.
- The contract can end early in some cases. Many customer contracts include termination-for-convenience provisions. These provisions mean a customer may have a contractual right to terminate without waiting for the original term to expire, subject to the agreement’s conditions.
This is contracted software revenue, but it is too broad to say that every Palantir agreement is a conventional, self-serve software-as-a-service subscription. Contract length, scope, deployment requirements and termination rights can vary. The company’s disclosure supports describing a recurring, contract-based model while preserving those distinctions.
Why ratable revenue recognition matters
When revenue is recognized ratably, a signed contract does not automatically become an equal amount of reported revenue on the signing date. The accounting generally recognizes the service as the customer receives it during the contractual term.
That timing creates an important difference between bookings, contract value and reported revenue. A large agreement can represent future contracted work while contributing revenue gradually. Conversely, revenue reported in a quarter can reflect contracts signed earlier, not only agreements announced during that quarter.
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Termination-for-convenience clauses also matter when evaluating durability. A multi-year stated term does not necessarily guarantee that the customer will use the software for every day of that term. The financial effect depends on the specific contract and the applicable accounting treatment; the existence of such clauses is a reason not to treat all contracted value as irrevocable.
What do Palantir’s latest revenue figures show?
Palantir reported $4.5 billion of revenue for full-year 2025. That figure is company-reported revenue for the year and should not be confused with an adjusted metric or with contract value that has not yet been recognized.
For the six months ended June 30, 2026, the company reported a customer mix of 52% government and 48% commercial. Its second-quarter 2026 investor presentation reported $1.94 billion in quarterly revenue, up 93% year over year. The same presentation reported $764 million of U.S. commercial revenue and $809 million of U.S. government revenue for that quarter.
| Measure | Reported amount | Period and qualification |
|---|---|---|
| Total revenue | $4.5 billion | Full year 2025, as reported by Palantir Technologies Inc. |
| Total revenue | $1.94 billion | Second quarter 2026; 93% year-over-year increase, according to Palantir’s Q2 2026 presentation. |
| U.S. commercial revenue | $764 million | Second quarter 2026, as reported in the company’s investor presentation. |
| U.S. government revenue | $809 million | Second quarter 2026, as reported in the company’s investor presentation. |
These figures show where reported revenue came from in the stated periods. They do not, by themselves, prove that one product, including AIP, caused the year-over-year increase. Revenue can reflect contract timing, customer additions, expansions, renewals, pricing, deployment work and changes in the government-commercial mix. Palantir’s filings and presentations should be read for the company’s explanations rather than replacing the reported numbers with an unsupported single-cause story.
What is the difference between Palantir’s government and commercial businesses?
The clearest difference is the type of organization paying for the software. Government revenue comes from public-sector customers, while commercial revenue comes from private businesses. The two groups can use overlapping technical capabilities, but their procurement processes, security requirements, operating environments and contract negotiations may differ.
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In 2025, government revenue was the larger share at 54%. In the first half of 2026, the government share was 52%, with commercial at 48%. Those figures indicate a relatively balanced mix in the periods reported, but they do not establish that the two businesses have identical growth rates, margins, contract sizes or renewal behavior.
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The geographic mix adds another dimension. U.S. customers represented 74% of 2025 revenue and 80% of revenue in the first half of 2026. Non-U.S. customers represented the remaining 26% and 20%, respectively. A reader comparing periods should keep both the customer type and geography in view rather than treating “government” or “commercial” as a complete description of the business.
How AIP fits the business model
AIP is Palantir’s generative-AI platform layer. The company says it can connect to third-party large language models and provide tools for building and governing AI-enabled workflows. The emphasis is on putting AI inside an organization’s controlled operating processes, with permissions and governance around how the system is used.
AIP can therefore be sold as part of a broader software relationship rather than as an isolated consumer chatbot. A customer may need data integration, a model connection, workflow design and deployment controls together. Palantir’s other platforms provide parts of that surrounding environment, according to the company’s product descriptions.
Public revenue figures do not separately identify how much revenue came from AIP in the periods described here. The reported growth rates and segment totals should not be presented as proof that AIP alone caused the increase.
What Palantir is—and is not—selling
- It sells organizational software access: customers pay to use platforms that connect data, analysis and operational workflows.
- It serves both public and private organizations: government and commercial customers each contribute substantial revenue.
- It is not primarily a physical-product company: the business model described in its filings centers on software contracts.
- It is not necessarily a uniform monthly subscription: contract terms generally run one to five years, shorter contracts occur, and termination provisions are common.
- Its accounting is tied to service delivery: revenue is generally recognized ratably over the contract term.
How to interpret Palantir’s business model as a reader or investor
Start with the period attached to every number. A full-year revenue figure cannot be compared casually with a six-month mix, and a quarterly total is not the same thing as an annual run rate. Next, separate customer category from geography: government versus commercial answers who bought, while U.S. versus non-U.S. answers where those customers are located.
Then distinguish reported revenue from future contract value. Because revenue is generally recognized over time, signing an agreement and recording revenue are different events. Termination-for-convenience rights mean that even a contract described as multi-year may contain an early-exit mechanism.
Finally, avoid assigning growth to a particular platform without a disclosure that supports the conclusion. Palantir offers several integrated platforms, and its published company-wide figures combine revenue across customers, products and periods.
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