‘AI Has Just Put Gasoline On All’

Palantir Technologies Inc. (NASDAQ:PLTR) on Monday said that the latest surge in its revenue is being driven less by new customer wins and more by existing clients sharply increasing their spending.

During the company’s fourth-quarter earnings call, Palantir CEO Alex Karp told investors that the company’s growth is coming from deeper engagement with serious customers rather than a rapid expansion of its client base.

“If you look at our numbers very closely, what you will see is inexplicable growth in revenue, but not inexplicable growth in customers,” Karp said during the earnings call.

He explained that customers are increasingly placing their most important and complex problems in Palantir’s hands, leading to significantly higher spending.

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Karp said artificial intelligence has dramatically amplified Palantir’s long-standing capabilities, rather than creating them from scratch.

“AI has just put gasoline on all the tribal knowledge we have in our products,” he said, adding that the company’s value creation comes from solving problems that are “determinative” for the business.

According to Karp, customers are paying more not just because Palantir takes on more work, but because the outcomes it delivers have a direct and measurable impact on operations.

On the government side, Karp suggested Palantir’s software has become deeply embedded in defense and national security operations, often helping shape how problems are defined in the first place.

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On the commercial side — an area of growing interest for investors — Palantir reported strong momentum in the U.S., with Karp highlighting 93% growth in domestic commercial revenue and sharply higher guidance compared with last year.

During the call, Karp highlighted Palantir’s straightforward approach to customers, contrasting it with traditional enterprise software sales tactics.

“We deliver a high-value product,” he said. “We’re going to deliver and then we get paid.”

He pointed to metrics such as 127%, 70% and 93% as his “favorite numbers,” reflecting strong expansion and retention among existing customers.

Palantir posted fourth-quarter revenue of $1.41 billion, topping Wall Street expectations of $1.33 billion.

The AI software company reported adjusted earnings of 25 cents per share, exceeding analyst estimates of 23 cents per share, according to Benzinga Pro.

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Revenue climbed 70% from a year earlier, driven by strong momentum in the U.S., where sales surged 93% to $1.08 billion.

U.S. commercial revenue more than doubled, rising 137% year over year to $507 million, while U.S. government revenue increased 66% to $570 million.

The company said its Rule of 40 score reached 127%.

Looking ahead, Palantir forecast first-quarter revenue of $1.532 billion to $1.536 billion, well above analyst projections of $1.32 billion.

For full-year 2026, the company expects revenue between $7.18 billion and $7.20 billion, compared with consensus estimates of $6.21 billion.

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This article Palantir Isn’t Adding Many New Customers — Existing Clients Are Spending Much More, CEO Alex Karp Says: ‘AI Has Just Put Gasoline On All’ originally appeared on Benzinga.com