Analysis of Reportable Segments
Palantir Technologies Inc. operates in 2 segments: Government and Commercial.
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- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2020
- Debt to Equity since 2020
- Total Asset Turnover since 2020
- Price to Operating Profit (P/OP) since 2020
- Analysis of Revenues
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Segment Profit Margin
Palantir Technologies Inc., profit margin by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Government | |||||
| Commercial |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Segment profit margins for the periods ending December 31, 2021 through December 31, 2025 demonstrate distinct trends within the Government and Commercial segments. Both segments experienced fluctuations, but ultimately exhibited improvement over the analyzed timeframe.
- Government Segment
- The Government segment’s profit margin began at 60.39% in 2021. A decrease was observed in 2022, falling to 57.91%. This was followed by a recovery in 2023, reaching 59.32%. Further gains were realized in 2024, with the margin increasing to 60.43%. The most substantial increase occurred between 2024 and 2025, with the profit margin reaching 65.61%. This indicates a strengthening of profitability within the Government segment towards the end of the period.
- Commercial Segment
- The Commercial segment’s profit margin started at 55.47% in 2021. A decline was noted in 2022, decreasing to 49.69%. The segment saw a modest recovery in 2023, rising to 51.91%. A more pronounced improvement occurred in 2024, with the margin increasing to 59.53%. The largest increase within this segment occurred between 2024 and 2025, reaching 65.92%. This suggests a significant positive trend in the Commercial segment’s profitability.
- Comparative Analysis
- While both segments experienced initial declines in profitability between 2021 and 2022, both demonstrated a consistent upward trend from 2023 through 2025. By 2025, the Commercial segment’s profit margin (65.92%) had nearly converged with that of the Government segment (65.61%), a narrowing of the gap observed in earlier periods. The rate of improvement accelerated for both segments in the latter years of the analyzed period.
Overall, the trend suggests improving operational efficiency and/or pricing power within both segments, culminating in comparable profitability levels by the end of the observation period.
Segment Profit Margin: Government
Palantir Technologies Inc.; Government; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Contribution | |||||
| Revenue | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Contribution ÷ Revenue
= 100 × ÷ =
The Government segment demonstrates consistent growth in both contribution and revenue over the five-year period. Simultaneously, the segment profit margin exhibits a generally positive trend, indicating increasing profitability alongside revenue expansion.
- Contribution
- Contribution from the Government segment increased steadily from US$541.883 million in 2021 to US$1.576 billion in 2025. This represents a substantial cumulative increase, suggesting a strengthening position within the government sector.
- Revenue
- Revenue generated by the Government segment followed a similar upward trajectory, rising from US$897.356 million in 2021 to US$2.402 billion in 2025. The consistent growth in revenue reinforces the segment’s expanding market presence.
- Segment Profit Margin
- The segment profit margin experienced a slight decrease from 60.39% in 2021 to 57.91% in 2022. However, it subsequently recovered and increased to 65.61% in 2025. This indicates improved operational efficiency or pricing power in more recent years. The margin remained above 59% for the majority of the period, demonstrating strong profitability.
The correlation between increasing contribution, revenue, and segment profit margin suggests effective cost management and a favorable pricing environment within the Government segment. The most significant margin improvement occurred between 2024 and 2025, warranting further investigation into the drivers of this increase.
Segment Profit Margin: Commercial
Palantir Technologies Inc.; Commercial; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Contribution | |||||
| Revenue | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Contribution ÷ Revenue
= 100 × ÷ =
The commercial segment demonstrates a consistent pattern of growth in both contribution and revenue over the five-year period. Simultaneously, the segment profit margin exhibits an overall upward trajectory, though with some fluctuation.
- Contribution
- Contribution from the commercial segment increased steadily from US$357.546 million in 2021 to US$1.366.627 million in 2025. This represents a substantial increase, indicating growing demand for the segment’s offerings and/or successful expansion into new markets. The growth rate appears to accelerate in later years.
- Revenue
- Revenue mirrors the trend in contribution, rising from US$644.533 million in 2021 to US$2.073.159 million in 2025. This corroborates the positive performance indicated by the contribution figures and suggests effective monetization of the segment’s products and services.
- Segment Profit Margin
- The segment profit margin began at 55.47% in 2021. A decrease to 49.69% was observed in 2022, potentially due to increased operating expenses or pricing pressures. The margin then recovered to 51.91% in 2023, and continued to improve, reaching 59.53% in 2024 and 65.92% in 2025. This suggests increasing operational efficiency, improved pricing strategies, or a shift towards higher-margin products within the commercial segment. The margin expansion in the latter years is particularly noteworthy.
The consistent growth in both contribution and revenue, coupled with the improving segment profit margin, indicates a strengthening financial performance within the commercial segment. The 2022 dip in profit margin appears to be a temporary deviation from the overall positive trend.
Revenue
Palantir Technologies Inc., revenue by reportable segment
US$ in thousands
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Government | |||||
| Commercial | |||||
| Total |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Revenue across all reportable segments demonstrates a consistent upward trajectory between 2021 and 2025. Both the Government and Commercial segments contribute to this overall growth, with the Government segment consistently representing the larger portion of total revenue. The rate of growth appears to be accelerating in the later years of the observed period.
- Government Segment Revenue
- Government segment revenue increased from US$897.356 million in 2021 to US$2,402.287 million in 2025. This represents a cumulative growth of 167.8% over the five-year period. The growth rate accelerated significantly from 2022 to 2023 (19.5% growth) and again from 2023 to 2024 (28.4% growth), culminating in a substantial increase of 53.2% from 2024 to 2025.
- Commercial Segment Revenue
- Commercial segment revenue also exhibited growth, rising from US$644.533 million in 2021 to US$2,073.159 million in 2025. This equates to a cumulative growth of 221.4% over the five-year period. Similar to the Government segment, the Commercial segment experienced accelerating growth, with increases of 29.5% from 2022 to 2023, 25.2% from 2023 to 2024, and 60.1% from 2024 to 2025.
- Total Revenue
- Total revenue increased from US$1,541.889 million in 2021 to US$4,475.446 million in 2025, representing a cumulative growth of 189.8%. The growth rate in total revenue also accelerated over time, mirroring the trends observed in both individual segments. The largest year-over-year increase occurred between 2024 and 2025, with a growth rate of 56.6%.
- Segment Contribution
- In 2021, the Government segment accounted for approximately 58.2% of total revenue, while the Commercial segment comprised approximately 41.8%. By 2025, the Government segment’s contribution had decreased slightly to approximately 53.6% of total revenue, while the Commercial segment’s contribution increased to approximately 46.4%. This suggests a relative increase in the importance of the Commercial segment to overall revenue generation, although the Government segment remains the dominant revenue driver.
Contribution
Palantir Technologies Inc., contribution by reportable segment
US$ in thousands
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Government | |||||
| Commercial | |||||
| Total |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The financial performance of the reported segments demonstrates consistent growth over the five-year period. Both the Government and Commercial segments exhibit increasing contributions to total revenue, with accelerating growth observed in more recent years. Total revenue reflects the combined growth of these segments.
- Government Segment
- The Government segment experienced growth from US$541.883 million in 2021 to US$1.576 billion in 2025. This represents a substantial increase, with growth accelerating from approximately 14.5% between 2021 and 2022 to approximately 31.8% between 2023 and 2024, and then 66.5% between 2024 and 2025. This indicates a strengthening position within the government sector and potentially larger contract wins.
- Commercial Segment
- The Commercial segment also showed consistent growth, increasing from US$357.546 million in 2021 to US$1.367 billion in 2025. While growth rates are lower than the Government segment, they are still significant. Growth accelerated from approximately 15.9% between 2021 and 2022 to approximately 23.3% between 2023 and 2024, and then 17.7% between 2024 and 2025. This suggests increasing market penetration and adoption of commercial offerings.
- Total Revenue
- Total revenue increased from US$899.429 million in 2021 to US$2.943 billion in 2025. The rate of growth in total revenue also accelerated over the period, mirroring the trends observed in both segments. The growth rate increased from approximately 15.1% between 2021 and 2022 to approximately 20.3% between 2023 and 2024, and then 34.2% between 2024 and 2025. This demonstrates a positive overall trajectory for the company.
- Segment Contribution
- In 2021, the Government segment contributed approximately 60.2% of total revenue, while the Commercial segment contributed approximately 39.8%. By 2025, the Government segment’s contribution increased to approximately 53.5% of total revenue, and the Commercial segment’s contribution rose to approximately 46.5%. While the Government segment remains the larger contributor, the Commercial segment is increasing its proportion of overall revenue, indicating a diversification of revenue streams.
The observed acceleration in growth for both segments, particularly in the later years, warrants further investigation to understand the underlying drivers. The increasing contribution from the Commercial segment is a positive sign, suggesting a broadening customer base and reduced reliance on government contracts.