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**BETA FINCH PODCAST SCRIPT**

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**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown where we dive deep into the numbers that matter. I'm Alex, and I'm joined as always by my co-host Jordan. Today we're breaking down Regeneron's Q4 2025 earnings - and folks, this biotech giant just delivered some fascinating insights into their pipeline and future strategy.

Before we jump in, I need to mention that this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN:** Thanks Alex. And what a quarter to analyze! Regeneron reported total revenue of $3.9 billion, up 3% year-over-year, with some really interesting dynamics happening across their portfolio. The headline number might seem modest, but when you dig into the details, there's a lot more going on here.

**ALEX:** Absolutely. Let's start with the standout performer - Dupixent. Jordan, this drug continues to be an absolute monster for Regeneron and their partner Sanofi.

**JORDAN:** It really is remarkable, Alex. Global Dupixent sales hit $4.9 billion in Q4 alone - that's 32% growth year-over-year. And get this - for the full year 2025, Dupixent brought in $17.8 billion globally. CEO Leonard Schleifer mentioned they now have 1.4 million patients on therapy worldwide across 8 approved indications.

**ALEX:** That's incredible scale. And what I found interesting was how Schleifer emphasized that most of those indications are still "significantly underpenetrated" - suggesting there's still room to grow this massive franchise.

**JORDAN:** Exactly. And speaking of growth, let's talk about their eye care franchise. EYLEA HD had a solid quarter with $506 million in U.S. sales, up 66% year-over-year. But the legacy EYLEA product is facing headwinds - it was down 15% sequentially as biosimilar competition looms.

**ALEX:** Right, and management was very transparent about the challenges ahead. They're expecting multiple biosimilar EYLEA products to launch in 2026, which will intensify competitive pressure. But they seem confident that EYLEA HD can hold its own with its differentiated profile.

**JORDAN:** The FDA just approved EYLEA HD for monthly dosing and a new indication, which should help. And they're waiting on approval for a prefilled syringe version that could make it more convenient for doctors to use. Marion McCourt, their commercial head, seemed optimistic about these enhancements.

**ALEX:** Now Jordan, what really caught my attention was the pipeline discussion. CSO George Yancopoulos laid out an incredibly ambitious clinical development plan.

**JORDAN:** Oh absolutely, Alex. They're planning to initiate 18 new Phase III studies targeting enrollment of 35,000 patients. That's a massive investment in late-stage development across multiple therapeutic areas - oncology, complement diseases, anticoagulation, and more.

**ALEX:** And the financial commitment is significant. CFO Christopher Fenimore guided R&D spending to $5.9-6.1 billion in 2026, up substantially from 2025. That's nearly $6 billion just on research and development!

**JORDAN:** Which brings us to one of the most intriguing parts of the call - their obesity strategy. Instead of just trying to compete head-to-head with existing GLP-1 drugs like Ozempic and Mounjaro, they're taking a differentiated approach.

**ALEX:** This was fascinating. Yancopoulos described their plan to combine a GLP-1/GIP drug with their PCSK9 inhibitor Praluent in a single injection. His quote was memorable - he said imagine if someone invented a new GLP-1 that not only delivers weight loss but also lowers bad cholesterol by 50-60%.

**JORDAN:** That's a clever strategy, Alex. Rather than fighting for an extra 1-

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ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown. Today we're digging into Qualcomm's fiscal Q3 2026 results — a quarter that's part strong execution, part serious cost headwinds. Before we get into it, quick note: this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

JORDAN: Alright, let's get into the numbers. Qualcomm posted revenue of $9.9 billion, high end of guidance, and non-GAAP EPS of $2.21. QCT — that's their chip business — brought in $8.5 billion, and licensing added $1.3 billion. On the surface, solid. But there's a real story underneath these numbers.

ALEX: Right, and that story is memory prices. CEO Cristiano Amon was upfront that the whole industry is dealing with a spike in memory costs, plus higher manufacturing and packaging costs, and supply shortages tied to data center demand sucking up capacity. That's squeezing QCT gross margins below their historical range this quarter.

JORDAN: Their answer is price increases — double-digit, broad-based across end markets, according to CFO Akash Palkhiwala. But here's the nuance: it phases in gradually because of existing contracts and product cycles. Amon actually made an interesting point on the call — even a double-digit chip price increase is small compared to the magnitude of memory cost inflation hitting device bills of materials.

ALEX: So this isn't really Qualcomm gouging anyone, it's a pass-through of what's happening across the whole supply chain. And notably, they said they expect fiscal 2027 top-line growth despite all this, driven by an inflection in their non-handset businesses.

JORDAN: And that's really the headline of this call — the diversification story. At their recent Investor Day, they raised their fiscal 2029 non-handset revenue target from $22 billion to $40 billion. That includes over $24 billion from automotive and IoT, plus more than $15 billion from data center.

ALEX: Let's talk data center, because this is the new frontier for Qualcomm. They're rolling out four product lines over the next few years — connectivity starting this year, custom silicon and AI accelerators in fiscal 2027, and server-class CPUs by fiscal 2028. They've already got two custom silicon deals with what they describe as global-scale hyperscalers, and revenue from those starts in the December quarter.

JORDAN: They also completed the tape-out of their High Bandwidth Compute chip — HBC Gen 1 — which integrates compute directly with high-density memory. First commercial HBC product is targeted for mid-2027. And they closed the acquisition of Modular, an AI software company, to build out an end-to-end, hardware-agnostic software stack. Worth noting though — Stacy Rasgon from Bernstein asked about margin drag from data center, and Akash confirmed it: expect a 1.5 to 2 percentage point drag on QCT's weighted average gross margin as that early revenue comes online, since it's mostly lower-margin custom chip work initially.

ALEX: Automotive was the clear bright spot this quarter — record revenue of $1.6 billion, up 61% year-over-year. They also signed a landmark expanded deal with BMW to be the lead compute silicon provider for next-gen ADAS and digital cockpit, plus a Stellantis collaboration stretching into the 2030s.

JORDAN: And they raised their automotive run-rate target — previously $6 billion annualized exiting fiscal 2026, now bumped up to about $7 billion. That's a meaningful upward revision in just one quarter.

ALEX: Now let's talk about the elephant in the room — Apple. This was probably the most eyebrow-raising part of the call.

JORDAN: Yeah, Akash disclosed that Qualcomm's share of the upcoming iPhone launch will be materially lower than

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# Beta Finch Podcast Script: Qualcomm Q2 2026 Earnings

**ALEX**: Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex, and joining me as always is Jordan. Today we're diving into Qualcomm's second quarter 2026 results, and wow, there's a lot to unpack here.

**JORDAN**: Absolutely, Alex. But before we jump in, let me remind our listeners: This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**ALEX**: Thanks, Jordan. Now, let's talk numbers. Qualcomm delivered $10.6 billion in revenue with non-GAAP earnings per share of $2.65, hitting the high end of their guidance. But the real story here isn't just the headline numbers—it's this massive pivot toward what CEO Cristiano Amon calls "agentic AI" and their diversification strategy.

**JORDAN**: Right, and let's break down those business segments because they tell an interesting story. QCT, their chip business, brought in $9.1 billion, while licensing pulled in $1.4 billion. But here's what caught my attention—automotive hit another record at $1.3 billion, up 38% year-over-year. They're now at a $5 billion annualized run rate and expect to exit fiscal 2026 above $6 billion.

**ALEX**: That automotive growth is impressive, but I want to talk about this elephant in the room—the China handset situation. They're dealing with what they call "memory industry dynamics" that are causing handset OEMs, particularly in China, to be super cautious with their build plans.

**JORDAN**: Exactly. CFO Akash Palkhiwala was pretty candid about this. He said their China Android shipments are "meaningfully below the scale of end consumer handset demand" because OEMs are drawing down channel inventory due to memory supply issues and price increases. But here's the key—they believe Q3 will be the bottom, with sequential growth expected after that.

**ALEX**: So basically, people are still buying phones, but manufacturers aren't ordering as many chips because they're worried about memory costs. It's like a supply chain traffic jam. But what really fascinated me was Amon's vision for where AI is heading. He's talking about this shift from basic AI inference to what he calls "agentic AI"—AI that can orchestrate multi-step tasks and run continuously in the background.

**JORDAN**: And this is where Qualcomm thinks they have a competitive advantage. Amon argued that agent orchestration is predominantly CPU-bound, and he claims Qualcomm has "the world's best performing CPU across smartphones, PCs, auto, and soon the data center." That's a bold claim, but they're backing it up with some interesting product launches.

**ALEX**: Speaking of bold claims, let's talk about their data center ambitions. This was probably the biggest surprise in the call. They announced they're starting shipments to a "leading hyperscaler" in December for a custom silicon engagement. When pressed for details, Amon was pretty tight-lipped but called it a "multi-generation engagement."

**JORDAN**: The timing on that is interesting because it suggests they've been working on this longer than many people realized. Remember, they acquired AlphaWave earlier, which gives them custom ASIC capabilities. But Amon mentioned they've been talking to data center customers for several quarters even before that acquisition.

**ALEX**: One analyst asked a great question about the competitive landscape, especially with ARM now trying to vertically integrate and NVIDIA focusing on inference. Amon's response was fascinating—he basically laid out how the AI market is evolving from training-focused to inference-focused to now this new phase of "agentic" experiences.

**JORDAN**: Right, and his argument is that as AI becomes more about

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**Beta Finch Podcast Script: Qualcomm Q1 2026 Earnings**

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**ALEX**: Welcome to Beta Finch, your AI-powered earnings breakdown where we turn complex financial reports into conversations you can actually follow. I'm Alex.

**JORDAN**: And I'm Jordan. Today we're diving into Qualcomm's first quarter 2026 results, and wow, this one's a bit of a tale of two cities.

**ALEX**: Before we jump in, I need to mention that this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN**: Absolutely. So Alex, let's start with the headline numbers because they're pretty impressive on the surface.

**ALEX**: They really are. Qualcomm delivered record-breaking results - $12.3 billion in revenue and $3.50 in non-GAAP earnings per share. Both numbers hit records, with EPS coming in at the high end of their guidance range.

**JORDAN**: The breakdown is interesting too. Their chip business, QCT, hit a record $10.6 billion, while their licensing division QTL brought in $1.6 billion. But here's where it gets complicated - they're guiding down significantly for next quarter.

**ALEX**: Right, and that's the big story here. For Q2, they're forecasting total revenue of $10.2 to $11 billion, which at the midpoint represents a pretty substantial sequential decline. The handset business specifically is expected to drop from $7.8 billion to about $6 billion.

**JORDAN**: And the reason? It's all about memory shortages. CEO Cristiano Amon was very clear about this - the AI data center boom is sucking up all the high-bandwidth memory, leaving smartphone makers scrambling for DRAM.

**ALEX**: Let me read you what Amon said because it really captures the situation: "As memory suppliers redirect manufacturing capacity to HBM to meet AI data center demand, the resulting industry-wide memory shortage and price increases are likely to define the overall scale of the handset industry through the fiscal year."

**JORDAN**: It's fascinating how the AI boom is creating these ripple effects. Chinese smartphone makers in particular are being cautious, reducing their chipset inventory because they can't get enough memory to build phones.

**ALEX**: But here's what's interesting - Qualcomm is emphasizing this isn't a demand problem. Consumer appetite for premium smartphones remains strong. It's purely a supply constraint. CFO Akash Palkhiwala mentioned they saw handset units exceeding expectations in December, especially in the premium tier.

**JORDAN**: That's a crucial distinction for investors. If this were a demand issue, you'd be worried about long-term market trends. But supply constraints, while painful in the near term, typically resolve themselves.

**ALEX**: Speaking of the premium tier, Qualcomm dropped some interesting details about their market position. They're expecting about 75% share of Samsung's upcoming premium devices, which is consistent with prior expectations. And they highlighted this interesting "dual flagship" strategy where OEMs are launching multiple premium tiers.

**JORDAN**: The automotive story continues to be a bright spot. They hit another record with $1.1 billion in automotive revenue, up 15% year-over-year, and they're guiding for even stronger growth - greater than 35% year-over-year growth in Q2.

**ALEX**: The Volkswagen Group partnership announcement is huge. This isn't just about infotainment systems - Qualcomm would serve as the primary technology provider for VW's software-defined vehicle architecture, including their joint venture with Rivian. That's Audi, Porsche, the whole VW ecosystem.

**JORDAN**: And they're expanding into new territories. The robotics announcement caught my attention - they're launching a full s

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Welcome to Beta Finch, your AI-powered earnings breakdown of the biggest names in the market. Here's the script for PMI's Q2 2026 call.

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**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown. Today we're digging into Philip Morris International's second quarter 2026 results — and there's a lot going on here, including a CFO transition. But first, the standard stuff: this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN:** Right, and PMI gave us plenty to unpack. Let's start with the headline numbers, because they were strong.

**ALEX:** Very strong. Organic net revenue growth of +8% for the quarter, operating income up +11%, and adjusted diluted EPS hit $2.20 — that's +14% currency-neutral, +15% in dollar terms. Quarterly net revenue crossed $11 billion for the first time ever.

**JORDAN:** And this wasn't just a currency tailwind story either. Outgoing CFO Emmanuel Babeau flagged that about a third of the EPS beat came from a favorable tax-related currency effect tied to the Russian ruble, but two-thirds was real operating strength — better SG&A phasing and a surprisingly strong combustible business.

**ALEX:** Let's talk about that smoke-free business first, because it's really the engine of this whole story. IQOS adjusted in-market sales volume grew +5% in the quarter — that sounds almost modest until you realize it includes two known headwinds: an excise tax hike in Japan and a flavor ban in Poland.

**JORDAN:** Strip those out and IQOS growth was over 10% in Q2, north of 11% for the first half. That's the real underlying trend. IQOS also just cracked Kantar's list of top 100 most valuable global brands — pretty remarkable for a product that's only a decade old.

**ALEX:** VEEV, their vapor brand, had an absolutely wild quarter — shipments up 55% in Q2, 72% for the half. Management says it's now the number one closed-pod brand in Europe and in global travel retail.

**JORDAN:** Now let's get into the U.S., because this is where investors have been the most impatient. ZYN shipments grew 2% year-over-year to 2.9 billion pouches, and importantly, that's despite lapping an inventory tailwind from last year. Sequentially versus a rough Q1, U.S. net revenue was up 38%, gross profit up 46%.

**ALEX:** The bigger story is the product lineup. They just launched ZYN Ultra — a lower-priced moist variant meant to close the gap with competitors — and they're bringing 1.5 and 8 milligram dry formats in Q3. Babeau was pretty clear-eyed that it's early days, just two weeks of data on Ultra, but the initial read and consumer feedback were encouraging.

**JORDAN:** And there's a regulatory tailwind too — ZYN got Modified Risk Tobacco Product authorization on 20 SKUs, the only nicotine pouch product with that designation. That lets them actually market reduced-risk claims versus cigarettes, which is a real differentiator.

**ALEX:** Here's the strategic pivot that stood out to me: management is choosing to step up U.S. investment hard in the second half — more marketing, a new brand campaign called "When It Clicks," expanded distribution — partly to build ZYN and partly to lay the groundwork for IQOS ILUMA's eventual U.S. launch, pending FDA action.

**JORDAN:** Which is why, despite beating estimates two quarters in a row, PMI held its full-year guidance rather than raising it. An analyst from Goldman actually pushed on this directly, and Babeau basically confirmed: yes, the flat guidance reflects the decision to plow incremental profit back into U.S. investment rather than let it drop straight to the bottom line.

**ALEX:** Let's touch on combustibles too, because cigarettes had a surprisingly strong quart

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**BETA FINCH PODCAST SCRIPT**

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**ALEX**: Welcome to Beta Finch, your AI-powered earnings breakdown! I'm Alex, and I'm here with my co-host Jordan to dive into Philip Morris International's Q4 2025 earnings call. Now before we get started, I need to mention that this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN**: Thanks Alex! And what a call this was from Philip Morris. They absolutely crushed it in 2025, delivering what CEO Jacek Olczak called "another outstanding year." We're talking about their fifth consecutive year of positive volumes, driven primarily by their smoke-free products business.

**ALEX**: Right, and the numbers really tell the story here. Philip Morris hit over $40 billion in total net revenues for 2025, with smoke-free products now representing 41.5% of that - nearly $17 billion! That's a massive shift from where they were just a few years ago.

**JORDAN**: The growth trajectory is impressive. Smoke-free product volumes grew 12.8%, with IQOS leading the charge at 11% growth. But here's what caught my attention - their ZYN nicotine pouches in the US grew shipments by 37%, despite supply constraints. That's reaching 11.9 billion pouches, making up about 7% of their total smoke-free volume.

**ALEX**: And let's talk profitability because that's where this story gets really interesting. Their smoke-free gross margin hit 69.5%, which is now four percentage points higher than their combustible business. CFO Emmanuel Babeau made it clear that this improving profitability mix is a key driver of their overall margin expansion.

**JORDAN**: Speaking of margins, they delivered 140 basis points of organic margin expansion to reach 40.4% adjusted operating margin. That's while they're still investing heavily in marketing and brand building for their smoke-free portfolio. It shows real operating leverage in the business model.

**ALEX**: Now, the guidance for 2026 is where things get particularly interesting. They're forecasting organic net revenue growth of 5-7%, which might seem modest compared to recent years, but there are some specific headwinds they're navigating.

**JORDAN**: Exactly. The big story is Japan, where they're facing significant excise tax increases on heated tobacco products - we're talking 50-100 yen per pack, which could be 10-20% of current retail prices. This creates an asymmetry where heated tobacco gets hit first, before cigarettes face similar increases in 2027.

**ALEX**: And in the US, there's the ZYN inventory normalization. They estimate there are about 25 million cans of surplus inventory in the downstream supply chain that needs to work through, likely in Q1. But the underlying demand story remains strong - ZYN maintained about 61.5% volume share in the US nicotine pouch category.

**JORDAN**: What I found fascinating in the Q&A was the discussion around ZYN Ultra, their higher-strength nicotine pouch that's pending FDA approval. Olczak was pretty direct - they have readiness to launch "essentially as we speak," and they're expecting some movement this summer, though he admitted he doesn't have a great track record forecasting the FDA!

**ALEX**: [Laughs] At least he's honest about that! But you can tell they're frustrated with the regulatory environment. When asked about New York's proposed excise tax on nicotine pouches, Olczak called it "counterproductive to the health benefits" and "the wrong idea."

**JORDAN**: The international expansion story is really compelling too. They're now in 106 markets with smoke-free products, and some of these new launches are showing impressive traction. Taiwan caught my eye - they hit 4% market share in just a few weeks after lau

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WELCOME TO BETA FINCH, YOUR AI-POWERED EARNINGS BREAKDOWN.

ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex, joined as always by Jordan, and today we're digging into Palantir's Q2 2026 print — and folks, this one's a doozy. But before we get into it, quick disclaimer: this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

JORDAN: And we need that disclaimer today more than usual, because Alex Karp did not hold back on this call. But let's start with the numbers, because they're genuinely wild. Revenue grew 93% year-over-year — that's Palantir's highest growth rate ever, at this scale.

ALEX: Right, and it's not a small-company effect either. We're talking $1.935 billion in quarterly revenue. The U.S. business specifically grew 115% year-over-year and is now over 81% of total revenue. U.S. commercial — meaning private companies, not government — accelerated to 149% year-over-year growth. That's up from an already huge number last quarter.

JORDAN: The bookings numbers back that up too. They closed $2.132 billion in U.S. commercial TCV — total contract value — in a single quarter. That's nearly $800 million above their previous best quarter ever. And 220 deals worth a million dollars or more, 73 of those over $10 million. Net dollar retention hit 157%, up 700 basis points sequentially — meaning existing customers aren't just staying, they're massively expanding their spend.

ALEX: On profitability, this wasn't a "growth at all costs" story either. Adjusted free cash flow was $1.22 billion, a 63% margin. GAAP net income crossed a billion dollars for the first time. Rule of 40 score — that combines growth plus margin — hit 155. For context, 40 is considered good for software companies. They're at nearly four times that.

JORDAN: And they raised guidance meaningfully. Full-year revenue guidance moved up to around $8.15 billion, which they called their largest-ever guidance raise. U.S. commercial guidance now sits above $3.4 billion for the year, implying at least 134% growth.

ALEX: So let's talk strategy, because CTO Shyam Sankar and CEO Alex Karp spent a lot of time on this idea of "AI sovereignty." The pitch is basically: if you're an enterprise just buying tokens from a frontier AI lab, you're paying to leak your own proprietary data and expertise into that lab's training pipeline — helping them build tools that could eventually compete with you. Palantir's argument is that their platform, AIP, lets companies keep control of their data, their models, and the "weights" — meaning the actual trained intelligence — inside their own security boundary.

JORDAN: There was a great anecdote about this — Shyam described a bake-off at a major tech company between a frontier AI lab's team and Palantir's forward-deployed engineers. Same customer, same timeline, same underlying models. The lab reportedly failed to deliver on a ticketing automation problem, while Palantir's team built something that converted into a $10 million contract. Whether or not you love the framing, it's a concrete data point on why enterprises are choosing them.

ALEX: They also introduced this term "benchmaking" versus "benchmaxing" — basically arguing that generic AI benchmarks don't matter much; what matters is building a benchmark specific to your business and optimizing toward that. They gave an example where an open-weight model, Nemotron Ultra, with no extra tuning, beat frontier models on five actual production tasks within 24 hours of testing.

JORDAN: On the government side — which is still nearly half of total revenue — U.S. government revenue grew 90% year-over-year. Their Maven platform now has over 25,000 builders

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# Beta Finch Podcast Script: Palantir Q1 2026 Earnings

**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown! I'm Alex, and joining me as always is Jordan. Today we're diving into Palantir's absolutely explosive Q1 2026 results - and folks, when I say explosive, I mean it. This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN:** Alex, I've been covering earnings for years, and these Palantir numbers are just wild. We're talking about 85% year-over-year revenue growth - their highest as a public company. But what really caught my eye was their U.S. business hitting triple digits for the first time since their direct listing.

**ALEX:** Right, 104% growth in the U.S.! And get this - their U.S. business now represents 79% of total revenue. They pulled in $1.63 billion in revenue for the quarter, up 16% sequentially. But Jordan, what's your take on their "Rule of 40" score hitting 145?

**JORDAN:** For listeners who might not know, the Rule of 40 combines revenue growth rate and profit margins - and anything over 40 is considered excellent. Palantir just scored 145, up from 127 last quarter. That's not just good, that's almost unheard of at this scale.

**ALEX:** And they're not slowing down. They raised their full-year 2026 revenue guidance to $7.656 billion - that's 71% growth year-over-year and a 10% bump from their previous guidance. What's driving all this growth?

**JORDAN:** It's all about their AIP platform - their Artificial Intelligence Platform. CEO Alex Karp was pretty bold on the call, claiming "almost every single highlighted example of AI that actually is producing results in the U.S. is actually Palantir." That's a huge statement, but the numbers seem to back it up.

**ALEX:** Speaking of bold statements, Karp mentioned they're achieving this growth with essentially just seven salespeople who actually sell, compared to what would normally be 7,000 for a company their size. That suggests incredible product-market fit.

**JORDAN:** The enterprise AI story is fascinating here. While everyone's talking about AI "slop" - their term for unreliable AI outputs - Palantir positions their platform as the "no-slop zone." They're saying enterprises need precision and governance when deploying AI, not just flashy demos.

**ALEX:** Let's break down the segments. Their commercial business grew 95% year-over-year to $774 million, with U.S. commercial specifically up 133%. But government wasn't slouch either - up 76% to $858 million.

**JORDAN:** The government wins are particularly interesting. They landed a $300 million USDA contract and their Maven Smart System for defense continues expanding. Ryan Taylor mentioned that Maven usage has doubled in the past four months and is now 4x what it was twelve months ago.

**ALEX:** What struck me was their customer expansion. Net dollar retention hit 150% - that means existing customers are spending 50% more than they were a year ago. And they're now at 1,007 total customers, up 31% year-over-year.

**JORDAN:** The cash generation is incredible too. They generated $899 million in cash from operations and $925 million in adjusted free cash flow. Karp made a great point - their free cash flow this quarter is larger than their total revenue was in the same quarter last year.

**ALEX:** During the Q&A, there were some interesting exchanges about competition from AI labs like OpenAI and Anthropic moving into enterprise. How did management respond to that?

**JORDAN:** Karp was pretty dismissive, honestly. He basically said "go ahead and try the alternatives" - test out what he calls the "slop" and then compare it to what Palantir delivers. He seems confide

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**BETA FINCH PODCAST SCRIPT**

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**ALEX**: Welcome to Beta Finch, your AI-powered earnings breakdown where we cut through the noise to bring you what really matters from corporate America's latest results. I'm Alex.

**JORDAN**: And I'm Jordan. Today we're diving into what might be one of the most jaw-dropping earnings reports we've covered - Palantir's Q4 2025 results that just dropped yesterday.

**ALEX**: Before we jump in, I need to mention that this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN**: Absolutely. And Alex, when you say "jaw-dropping," you're not kidding. I mean, where do we even start with these numbers?

**ALEX**: Let's start with the headline figure - 70% revenue growth year-over-year. For a company that's been public for several years now, that's just... unprecedented.

**JORDAN**: Right, and what really caught my attention is that this wasn't just top-line growth. Their "Rule of 40" score - which measures combined revenue growth and profit margins - hit 127. For context, anything above 40 is considered excellent for a SaaS company.

**ALEX**: And the US business is absolutely on fire. US revenue grew 93% year-over-year, now representing 77% of their total revenue. Their US commercial segment specifically grew 137% year-over-year. These aren't typos, folks.

**JORDAN**: What's fascinating is how they're achieving this. It's not just about adding more customers - though they did grow to 954 customers, up 34% year-over-year. It's about existing customers dramatically expanding their usage. Their top 20 customers now generate $94 million each in trailing twelve-month revenue, up 45% year-over-year.

**ALEX**: The deal sizes they're talking about are staggering. They mentioned a healthcare company that went from demos to a $96 million deal by year-end. An engineering services company signed an $80 million contract after just seeing some fall demos.

**JORDAN**: And here's what's really interesting about their guidance for 2026 - they're projecting $7.19 billion in revenue, which represents 61% growth. Remember, at the beginning of 2025, they were guiding for around 30% growth and ended up with 56%.

**ALEX**: Let's talk about what's driving this. Their AIP platform - that's their AI Platform - seems to be the secret sauce here. CEO Alex Karp made some pretty bold claims about how they're different from other AI companies.

**JORDAN**: Yeah, Karp was... characteristically colorful in his commentary. He basically argued that while everyone else is competing on commoditized AI models, Palantir is focused on what he called "scaling the leverage" of AI in real-world production environments.

**ALEX**: The defense business is equally impressive. US government revenue grew 66% year-over-year. They landed a $448 million contract with the Navy for modernizing shipbuilding supply chains, and their "Warp Speed" initiative seems to be expanding beyond just submarines.

**JORDAN**: Speaking of Warp Speed and their "Ship OS" - they shared some incredible efficiency gains. One shipbuilder reduced planning time from 160 hours to 10 minutes. A shipyard cut material review from weeks to less than an hour.

**ALEX**: But here's something that really stood out to me from the Q&A - when asked about international expansion, Karp was pretty blunt. He basically said they don't have the bandwidth to focus on difficult international markets because US demand is so overwhelming.

**JORDAN**: That was a fascinating strategic admission. He specifically called out Europe and Canada as markets where there's "lack of adoption," while praising adoption in places like Israel and Arab countries. It sounds like they'

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ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown, where we take the calls that move markets and make sense of the numbers behind them. I'm Alex.

JORDAN: And I'm Jordan. Today we're digging into Prologis — ticker PLD — the industrial and logistics real estate giant, reporting their second quarter of 2026.

ALEX: Before we jump in, quick disclaimer: this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

JORDAN: Okay, with that out of the way, Alex, this was a strong quarter for Prologis. Where do we start?

ALEX: Let's start with the headline numbers. Core FFO came in at $1.63 per share including promote income, $1.60 without — both ahead of expectations. And because of that strength, they raised full-year guidance: Core FFO now expected between $6.22 and $6.30 per share, and net earnings guidance up to $4.40 to $4.55 per share.

JORDAN: And it's not just a beat-and-raise on the bottom line — the operational metrics back it up. Occupancy hit 95.5%, up 20 basis points from Q1. Same-store NOI growth was 6.4% net effective and 8.5% on a cash basis. Those are really healthy numbers for a REIT this size.

ALEX: The leasing volume stood out to me the most — 67 million square feet signed in the quarter. CEO Dan Letter called it their fourth record in seven quarters.

JORDAN: Right, and it's paired with 66 million square feet of net absorption in the US, the highest since 2022. Vacancy dropped to 7.2%, market rents ticked up about 70 basis points. Management's whole thesis this call was that the industrial market has moved past its "inflection phase" and into what they're calling the next phase of growth.

ALEX: There's also a really interesting structural story here beyond just warehouses. Prologis has been building out data centers and energy as parallel growth engines using the same land and customer relationships.

JORDAN: Yeah, the numbers there are eye-popping. Their power pipeline is now 5.8 gigawatts — that's more than doubled in two years. Depending on how much of that gets built as basic "powered shell" versus fully finished "turnkey" data centers, that represents somewhere between $17 billion and $87 billion of potential investment.

ALEX: Huge range.

JORDAN: Huge range, and CEO Dan Letter was upfront on the call that it's genuinely hard to predict where in that range they'll land — it depends on customer preference. But they did share they've now started nearly $4 billion of data center development, all build-to-suit for hyperscale customers, and they sold a 100-megawatt power land parcel this quarter at an 82% margin.

ALEX: Which tells you how profitable just the land and power entitlement piece of this business can be, even before construction.

JORDAN: Exactly — and CFO Tim Arndt mentioned they see over 10 gigawatts of opportunity over the next decade. It's basically a second growth business layered on top of the core logistics platform.

ALEX: On the guidance side, they raised development starts to a range of $5.5 to $6.5 billion, and increased acquisitions guidance too — they bought $1.8 billion of real estate this quarter at roughly a 20% discount to replacement cost.

JORDAN: That IRR discipline came up a few times. Management noted underwritten IRRs on acquisitions have beaten IRRs on dispositions by 140 basis points year to date — so they're actively upgrading the portfolio, not just growing for growth's sake.

ALEX: Now, one thing listeners should know — there's a corporate development angle hovering over this whole call that management wouldn't discuss.

JORDAN: Right, Prologis has made a possible offer for Segro, a UK logistics REIT, under UK takeover rules. Because of regulatory restrictions, they explicitly said they couldn't answer any que

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