Palantir crushes earnings with 70% growth as accelerating AI demand drives commercial revenue surge

Palantir soars after strong earnings. What analysts highlighted, including accelerating AI demand

Palantir rallied after issuing a strong revenue forecast for 2026 and posting strong Q4 results, with analysts across Wall Street pointing to the company's strong artificial intelligence presence as a key driver behind the bullish outlook. The software analytics company, which creates tools for businesses and government agencies, posted fourth-quarter earnings of 25 cents per share on revenue of $1.41 billion. Analysts expected a profit of 23 cents per share on revenue of $1.33 billion. Analysts noted that this was the 10th straight quarter of accelerating total revenue growth for the company, driven by upside in both total commercial and total government growth. Palantir's commercial business accelerated 137% year over year in the fourth quarter, while its government business grew 66% year over year, wrote Goldman Sachs. But analysts were even more blown away by Palantir's strong revenue forecast. The company's 2026 guidance implies topline growth of 61%, ahead of Wall Street's 43% estimate. Sell-side shops applauded Palantir as a clear artificial intelligence leader, pointing out that its earnings report proves that companies are embracing AI. "With 2026 guidance targeting growth of +61%, PLTR is on course to reach $10B in revenue at the fastest growth rate and highest margins perhaps in [software] history, underscoring its status as a clear AI winner," wrote Morgan Stanley analyst Sanjit Singh. Analysts see further upside in Palantir's commercial and government divisions, with Bank of America's Mariana Perez Mora highlighting the company's December $448 million deal with the U.S. Navy as "only the beginning." In July, Palantir signed a software contract worth up to $10 billion with the U.S. Army. Mora added that while competition will certainly increase for Palantir, the company's gap versus contenders only continues to widen. Those covering the stock also glazed over one of the few sore spots on the report, a deceleration in Palantir's number of new customers. "We find it challenging to even find a flaw in this print (new customer growth slowed but that's not a key KPI for Palantir)," wrote UBS analyst Karl Keirstead. Shares of Palantir jumped 11% in Tuesday's premarket session. Still, some remained bearish or neutral purely on Palantir's lofty valuation and multiples which they said may be difficult to sustain. Here's what some of Wall Street's biggest shops had to say. RBC Capital Markets: underperform rating, $50 price target The bank's price target implies about 66% downside from Palantir's Monday close of $147.76. "1Q revenue guidance calls for $1,532 - $1,536M (~74% YoY), above consensus at ~$1,326M, while adj. operating margin midpoint was set at ~57%, above consensus of 48.3%. 2026 revenue guidance was set at $7,182-$7,198M (above consensus at ~$6,295M) and U.S. Commercial revenue guidance exceeds $3.14B which represents at least 115% YoY growth." Jefferies: underperform, $70 Jefferies' forecast corresponds to downside of 53%. "4Q results showed broad-based acceleration with rev/U.S. commercial growth rising to 70%/137% y/y (vs 63%/121% last Q) and CY26 guidance pointing to continued momentum: rev to 61% growth (vs 56% in CY25), U.S. commercial to 115% growth (vs 109% in CY25) and [operating margin] to 57% (vs 50% in CY25). We view execution as strong, though at 39x CY27E rev, multiple downside outweighs fundamental upside, with more attractive stocks in our coverage." UBS: neutral, $180 The bank's target, down from $205, calls for 22% upside going forward. "Palantir reported its 10th straight quarter of revs growth acceleration, a turnaround that we've never seen before, from 13% in 2Q23 to just-reported 4Q25 growth of 70%, impressive growth while at a $5.6 billion revs scale while running at 57% operating margins. The key takes for us are twofold - a) with a normal beat, the 61% revs guide for 2026 implies that growth may accelerate further from the 70%+ level in 4Q25/1Q26 and b) large enterprises ARE leaning in to AI and spending to harness their data sets, a good readthrough to the broader data software segment. We remain very positive on the fundamentals and it is only valuation (94x CY26e FCF) that keeps us Neutral rated." Goldman Sachs: neutral, $182 Goldman Sachs' forecast, down from $188, is 27% above Palantir's Monday closing price. "2026 revenue guidance is 14% above the Street and EBIT margin is ~700bps above. Palantir remains one of only a handful of software companies that is clearly benefiting from AI deployments today because of its unique IP in data aggregation/analysis, its custom-built ontologies, and its FDE model that then converts code into product. Our positive near-term view is balanced by longer term ecosystem risks (i.e., the TAM will go up but the win rate may go down as competition matures) and valuation." Deutsche Bank: hold, $200 Deutsche Bank's forecast was approximately 35% higher than Palantir's current valuation. "We come away from Palantir's exceptional 4Q results questioning all that we know about covering Software and what it means for the entire space. As most other companies struggle to demonstrate enterprise AI value capture and explicit incrementality, Palantir is handily gaining share, particularly in AI, as it delivers accelerating growth at scale. While we can look to real innovations like Ontology, AIP, AI FDE, and many others to understand why, it is clear Palantir is ahead of app software incumbents in creating real AI value for customers ... Put simply, the combination of growth, scale, and profitability definitely puts PLTR in a class by itself, or an 'n of 1' company as CEO Alex Karp says." Baird: outperform, $200 "Revenue and FCF too impressive; valuation finally reasonable. Yesterday PLTR reported strong Q4 results, marking the tenth consecutive quarter of accelerating total revenue growth (+70% vs. +63% in Q3), driven by U.S. commercial upside. Guidance was also strong, with Q1 guidance implying further acceleration. We had been on sidelines, like many, due to valuation. But the free cash flow inflection, and arguably attractive (not a typo) FCF multiple on 2027 upside scenarios, pushes us into the 'buy' camp. And by the way, PLTR remains one of the clearest AI winners." Morgan Stanley: equal-weight, $205 Morgan Stanley's target equates to 39% upside. "Revenue accelerated for the 10th qtr in a row to +70% on op margins of 57%. With 2026 guidance targeting growth of +61%, PLTR is on course to reach $10B in revenue at the fastest growth rate and highest margins perhaps in [software] history, underscoring its status as a clear AI winner." Bank of America: buy, $255 The bank's forecast implies about 73% upside from here. "Actions have consequences; for Palantir their intentional actions on how to go-to-market, develop products, and be an enabler of AI-decision making continues to be met with exponential growth. We view PLTR's 2025 rule of 40 score of 106% and 118% outlook for 2026 as a warning to peers, being an 'AI company' needs to come with real results. While the market's relationship with AI companies continues to be volatile, we see these results cementing PLTR's place as one which will survive and thrive in the chaos." Citi: buy, $260 Citi's forecast, up from $235, corresponds to upside of around 76%. "Q4 was another extraordinary print with strong top/bottom line beats, accelerating growth in USG and U.S. Commercial and various booking metrics pointing to triple digit growth (TCV and RDV growing > 100% YoY and cRPO bookings up 103% YoY). With initial FY26 guidance well surpassing consensus expectations > 60% YoY total revenue growth (vs. consensus at ~40%) and $4.1Bn of adj FCF (consensus at $3.1Bn), these revisions mark some of the strongest at scale we've seen in enterprise software. Palantir's momentum increasingly stands out in a software market where accelerating growth stories are rare, which we'd attribute to Palantir's best-in-class AI-FDE and data ontology capabilities."

'We are an n of 1': Palantir hails 'incredible' earnings as stock rockets nearly 8% after hours | Fortune

Palantir Technologies declared "we are an n of 1" in the artificial intelligence software market on Monday, as the data analytics group reported yet another set of record quarterly results, sending its shares surging nearly 8% in late trading. Investors cheered a powerful combination of faster growth, fatter margins and a revenue outlook "crushing consensus expectations," prompting a sharp rebound in a stock that had stumbled to start the year. The Denver-based company reported fourth-quarter revenue of about $1.41 billion, topping analyst expectations and marking another record period for the company famously named after a magical Lord of the Rings object. Adjusted earnings per share came in at 25 cents, two cents above consensus, while net income climbed to about $609 million, helping deliver one of Palantir's strongest profitability performances to date. Management highlighted a "Rule of 40" score -- the sum of revenue growth and operating margin -- at an "incredible" level of 127%. CEO Alex Karp attributed this to Palantir being the only company "choosing to exclusively focus on scaling the operational leverage made possible by the rapid advancements of AI models, a trend that we first called 'commodity cognition' well before others started repeating it." Palantir's AI Platform remained the main growth engine, particularly in the U.S. commercial market, where revenue and customer counts have been climbing at a breakneck pace. The company's "bootcamp" go-to-market model -- short, intensive workshops where Palantir teams build live applications on customer data in days -- has compressed sales cycles from months to weeks in some cases, with several organizations signing seven-figure deals shortly after attending. Andreessen Horowitz's Mark Andrusko wrote several days ago about the "Palantirization of everything" and how the "universal playbook" was much envied in Silicon Valley, yet difficult to replicate. "The Palantir pitch -- parachute a small team into a messy environment, wire together homegrown, siloed systems, and ship a customized working platform in months -- is compelling," he wrote, but Palantir is a "category of one," similar to how many companies pitched themselves as platforms in the 2010s, but very few actually were. While Wall Street's focus has increasingly turned to Palantir's enterprise roster, the company's government business remains a cornerstone, supplying software to the U.S. Army, other Pentagon branches and allied militaries. Government revenue continued to grow in the latest period, even as management acknowledged persistent macro headwinds in Europe and lumpiness tied to large contracts. Looking ahead to 2026, Palantir forecast full-year revenue between $7.18 billion and $7.2 billion, implying growth of around 60% and handily beating consensus expectations. For the current quarter, the company guided to about $1.53 billion-$1.54 billion in sales, again above analyst estimates and signaling little slowdown in enterprise AI spending despite broader market volatility.

Palantir Earnings Are 'A Warning to Peers' as Software Stocks Slump

Software stocks have slumped this year amid concerns that AI will enable companies and consumers to create their own bespoke software, rather than rely on third parties. Yet again, investors are showing that they have plenty of love left for companies that are seeing real results from the AI boom. Palantir (PLTR) stock was up more than 5% in recent trading, after the data analytics software company blew past earnings estimates, results that Citigroup analysts attributed to its "best-in-class" AI capabilities. Palantir was leading advancers in the Nasdaq 100, which is down sharply Tuesday amid a broad decline for technology stocks. (You can read Investopedia's coverage of today's market action here.) Palantir and its peers in the software industry have had a tough start to the year on Wall Street, with the rise of "vibe coding" stoking concerns about AI-driven disruption. Palantir stock fell nearly 17% between the start of the year and Monday's close, while the iShares Expanded Tech-Software Sector ETF (IGV) fell more than 15%. Tuesday's results helped reassure investors that AI is more of an opportunity than a threat to Palantir. The results were "a warning to peers" that "being an 'AI company' needs to come with real results," wrote Bank of America analysts in a note on Tuesday. Bank of America analysts hailed Palantir's "Rule of 40" score -- a performance metric that sums a company's revenue and profit growth rates -- of 127% in the most recent quarter as evidence of its unique position within the software sector. Palantir, which has no direct exposure to the hundreds of billions being spent annually on data center equipment, is one of only four companies tracked by BofA with a Rule of 40 score above 80 -- the others being major data center chip suppliers Nvidia (NVDA), Taiwan Semiconductor Manufacturing Co. (TSM) and Micron. Instead of benefiting from spending on AI infrastructure, Palantir has made itself a key partner to companies implementing AI internally. Palantir's commercial revenue -- as opposed to government revenue -- grew 137% year-over-year last quarter, and is forecast to increase 115% this calendar year. According to BofA, the number of companies mentioning Palantir on their third-quarter earnings calls more than doubled from the prior year. While AI has been a headwind for software stocks recently, some experts say it's only a matter of time before Wall Street realizes software companies industry-specific knowledge and relationships are, like Palantir, indispensable enablers of AI implementation.

Palantir Proved AI Can Make Money. But There Is An ETF Problem - REX AI Equity Premium Income ETF (NASDAQ:AIPI), Global X Artificial Intelligence & Technology ETF (NASDAQ:AIQ)

Palantir Technologies Inc's (NASDAQ:PLTR) recent earnings blowout was more than just another AI beat -- it was a stress test on how AI and technology ETFs are actually constructed. The Denver-based company reported 70% year-over-year revenue growth and a 56% free cash flow margin. It also boasts a Rule of 40 score of 127, which is more typical of early-stage software companies than of scaled platforms with $7.2 billion in cash on hand. Despite the operational fireworks, Palantir remains structurally underweight in many AI ETFs and overrepresented in a few thematic and factor ETFs. This has created what portfolio managers call a weight distortion problem. Jake Behan, Head of Capital Markets at Direxion, noted, "There had been tension between Palantir's AI narrative and its revenue mix, with the story running ahead of the numbers, and this quarter brought the two back into better balance." For ETF construction, that balance shift matters. Too Big For The Narrative, Too Small For The Basket It isn't a compute play. It isn't monetizing AI models. Furthermore, it's monetizing AI decision-making at scale across defense, supply chain, energy, healthcare, and government. This is important because the Palantir earnings call revealed a phenomenon that many AI ETFs have yet to tap into: AI-driven operating leverage, rather than AI-driven capex. The maximum portfolio weight for Palantir in a non-leveraged ETF is 10.5%. This creates a familiar ETF problem: Palantir is doing the heavy lifting on fundamentals, with, in many cases, a middleweight allocation. Where Palantir Quietly Dominates The mispricing will become more apparent when considering non-traditional AI ETFs. These ETFs are not trying to ride the AI trend; instead, they aim to position themselves as U.S.-focused tech, software, and factor-based plays. By doing so, they have already made Palantir one of their major holdings before most traditional AI ETFs have even had a chance to rebalance their portfolios. Government As Anchor, Not a Constraint Palantir's government exposure has long been viewed as both a strength and a structural risk. This quarter reframed that debate. "Government remained the anchor, but this quarter showed it was far from stagnant -- it accelerated alongside commercial, which strengthens Palantir's overall story," Behan said. "The bull case for Palantir was simple: government remains the cash-flow anchor, and commercial AI showed real acceleration on top of it." That acceleration matters for ETF investors who previously discounted Palantir due to customer concentration concerns. "Government exposure can prove a double-edged sword providing durable revenue, but also concentration risk. The difference this quarter was how much commercial growth reduced reliance on any single customer group," Behan added. For portfolio construction, that reduces a key justification for underweighting the stock. Why Guidance Changed The Conversation For a company trading at a premium multiple, forward guidance mattered as much as reported results. "Forward guidance is incredibly important for a company like Palantir in light of its lofty forward P/E and the company just raised the bar with a very confident 2026 outlook," Behan said. More importantly, Palantir delivered what AI investors have increasingly demanded: proof of commercial AI at scale. "Traders didn't need a blowout, they needed proof of commercial AI at scale, and 115%+ growth guidance delivered exactly that," Behan said. U.S. commercial revenue jumped more than 130% year over year, reinforcing that Palantir's AI is embedded in real workflows, not pilot programs. "What's clear right now is that the market isn't rewarding AI hype, it's rewarding production," Behan said. The Bigger ETF Question Palantir's quarter was more than an important industry inflection point for the company. It highlighted an even larger question for ETF issuers: Is AI investing about building intelligence, or using it for profits? Palantir is now clearly and firmly in the second category. But many AI ETFs are still built on companies that are still leveraging promise over production. As Behan put it, "There is a broader AI monetization test happening across the market right now. This quarter helped position Palantir as a company showing AI in real workflows and generating real revenue." Palantir may not find itself in the top weights of every AI ETF portfolio overnight. But one thing is clear from its Rule of 127 quarter: AI ETFs that don't include operational AI platforms in their portfolios risk owning the sizzle and missing the steak. And Palantir just gave them the numbers to prove it. Image: Shutterstock Market News and Data brought to you by Benzinga APIs

Think Palantir's Blistering Growth Is Over? Think Again

The artificial intelligence and data mining specialist took its growth to a whole new level. One of the biggest questions among investors is what to make of artificial intelligence (AI). There are concerns about the slowing adoption of AI, the potential of a bubble, and whether the circular nature of some AI deals is "artificially" propping up demand. With all that uncertainty as a backdrop, Palantir Technologies (PLTR +5.95%) reported its quarterly results after the market close on Monday, and to call the quarter a blowout might be an understatement. The AI and data mining specialist beat Wall Street's expectations across all key metrics and issued a bullish forecast for 2026. Let's take a look at the results, what they suggest about the future, and whether any nagging doubts remain. A blowout For its fourth quarter, Palantir delivered blockbuster results across the board. Record revenue of $1.4 billion jumped 70% year over year and 19% quarter over quarter, marking the 10th consecutive quarter of accelerating revenue growth. Spending discipline fueled robust adjusted earnings per share (EPS) of $0.25, which surged 79%. The company easily surpassed Wall Street's expectations, with analysts' consensus estimates of $1.34 billion in revenue and $0.23 in EPS. Yet as impressive as the numbers are, the devil's in the details, and the underlying metrics were even more eye-catching. U.S. government revenue jumped 66% year over year and 17% sequentially to $570 million. However, it was the U.S. commercial segment that did the heavy lifting, as revenue of $507 million surged 137% year over year and 28% sequentially. Palantir closed a total of 180 deals worth at least $1 million during the quarter, including 84 worth $5 million and 61 worth $10 million. This helped the company close out the quarter with a record $4.26 billion in total contract value, up 138% year over year. Equally impressive was Palantir's remaining performance obligation -- contractually obligated revenue that hasn't yet been recognized -- of $4.21 billion, which soared 143%. The company's net dollar retention rate, which measures additional spending by existing customers, hit 139%. Put another way, existing customers spent 39% more than in the same period last year, as users expanded their use of Palantir's AI tools. Palantir's "rule of 40" score, a common measure of earnings quality for software-as-a-service companies, was in a class by itself, soaring to 127%. Any number above 40 indicates solid financial health. Management is predicting the company's AI-driven growth streak will continue. For 2026, Palantir is guiding for revenue of $7.19 billion, or growth of 61%. In the company's shareholder letter, CEO Alex Karp sought to explain the gulf between Palantir and other AI providers: The large language models (LLMs) alone will not lead us to salvation. They require a means of reliably and efficiently interacting with the byzantine complexity of the modern enterprise -- its tangle of datasets and operations and personnel. He goes on to say that AI models must be tethered to the real world, and that Palantir's software is the "tether." A wall of worry Palantir delivered revenue and profit figures that should put to rest any concerns about slowing AI demand. Moreover, Palantir isn't part of any of the circular deals that have investors worried. What remains are concerns about an AI-centric bubble and, in Palantir's case, the stock's lofty valuation. And those concerns are understandable. In some quarters, Palantir has been called "the most expensive stock in history." A look at its multiple helps explain why. Heading into its earnings report, the stock was selling for 346 times earnings. Looking ahead, the numbers are slightly more palatable at 146 times forward earnings and 105 times next year's expected earnings. However, no matter how you slice it, the stock is pricey. That said, some of the most successful companies in history have been expensive. In late 2012, Amazon boasted a price-to-earnings ratio of more than 3,600, fueled by heavy losses. Even before that spike, it had a multiple of over 300. Since then, Amazon stock has returned 1,840% -- despite its then-lofty valuation. This is not an apples-to-apples comparison, but it serves to illustrate that some of the best stocks in a generation were, at times, deemed too expensive. To be clear, Palantir stock will not be appropriate for every investor. Those with a low threshold for volatility and value investors will balk. That said, a small position as part of a balanced portfolio might be a fit for risk-tolerant investors who plan to hold for the long term.

Palantir Isn't Adding Many New Customers -- Existing Clients Are Spending Much More, CEO Alex Karp Says: 'AI Has Just Put Gasoline On All' - Palantir Technologies (NASDAQ:PLTR)

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. Revenue Growth Comes From Bigger Deals, Not More Customers 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. AI Supercharges Palantir's Core Strengths 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. Growing Share Of Government, Commercial Budgets 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. 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. We Deliver, Then We Get Paid: Karp 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 Beats Q4 Earnings Estimates 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. 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. Price Action: Palantir shares closed at $147.78 on Monday, up 0.81% and jumped to $158.05 in after-hours trading, gaining 6.95%, according to Benzinga Pro. Palantir stock scores highly on Growth in Benzinga's Edge Stock Rankings, showing a strong long-term price trend despite weakness in the short and medium term. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Shutterstock Market News and Data brought to you by Benzinga APIs

Palantir Gains Fast as Investors Digest a Much Bigger 2026 Revenue Path | Investing.com UK

Palantir Technologies (NASDAQ:PLTR) stock surged over 11% in premarket trading on February 3, 2026, following the company's impressive fourth-quarter earnings report released after market close on February 2. The data analytics and AI software provider delivered results that significantly exceeded Wall Street expectations, with fourth-quarter revenue growing 70% year-over-year to $1.41 billion compared to analyst estimates of $1.33 billion. The company's forward guidance for fiscal 2026 proved even more striking, with projected annual revenue between $7.18 billion and $7.20 billion, substantially above the analyst consensus of $6.22 billion. Palantir's fourth-quarter results demonstrated the company's accelerating growth trajectory, with revenue climbing 70% from $827.5 million in the prior-year period. Earnings per share reached 25 cents on an adjusted basis, beating the expected 23 cents. For the full fiscal year, total sales reached $4.48 billion, reflecting strong demand across both government and commercial sectors. U.S. government revenue totaled $570 million while U.S. commercial revenue hit $507 million, both exceeding analyst projections. The company's profitability showed remarkable improvement, with net income totaling more than $608 million, or 24 cents per share, compared to just $79 million, or 3 cents per share, a year earlier. CEO Alex Karp characterized the results as "indisputably the best results that I'm aware of in tech in the last decade" during a CNBC interview. The government segment saw particularly strong growth of 66%, driven by Department of Defense contracts including a $10 billion U.S. Army deal and a $448 million Navy shipbuilding contract. Palantir's fiscal 2026 guidance proved to be the highlight for investors, with projected revenue of $7.18 billion to $7.20 billion representing a dramatic increase over the analyst consensus estimate of $6.27 billion. First-quarter revenue guidance of approximately $1.53 billion also substantially exceeded the expected $1.32 billion. This robust outlook reflects continued strong demand for the company's artificial intelligence platform and data analytics tools across both government agencies and commercial enterprises. The company's U.S. commercial segment showed particularly impressive momentum, with revenues more than doubling from the prior year and remaining commercial deal value rising 145% year-over-year to $4.38 billion. Palantir also announced a strategic partnership with leading AI chipmaker Nvidia during the quarter, further positioning the company to capitalize on the AI boom. Despite shares being down approximately 15% year-to-date through February 2, the stock had rallied 81% over the previous 12 months, demonstrating sustained investor confidence in the company's AI-driven growth strategy. *** Looking to start your trading day ahead of the curve?

Palantir beats forecasts on AI and government demand

Palantir has posted Q4 results that are well above expectations, driven by the strong adoption of its artificial intelligence solutions and rising demand from the US government. EPS reached 25 cents, versus 23 cents expected, while revenue came in at $1.41bn, up 70% y-o-y. FY sales totaled $4.48bn. The US government business rose 66%, with $570m in revenue, and the US commercial segment generated $507m, also topping forecasts. For Q1 2026, Palantir expects revenue between $1.532bn and $1.536bn, well above the $1.32bn expected. For the year, the group is targeting between $7.182bn and $7.198bn in revenue, versus $6.22bn anticipated by analysts. Net profit came in at $608m, compared with $79m a year earlier. CEO Alex Karp highlighted the ramp-up in military contracts, including a deal that could be worth up to $10bn with the Pentagon, and said that the company was prioritizing the US market over some allies in response to strong demand. Despite the momentum, some investors remain cautious. Palantir shares, which have jumped 81% over the past year, are actually down 15% YTD, amid doubts about valuations for AI-linked companies. The stock came under pressure after criticism from short seller Michael Burry, prompting a sharp response from Karp, who defended the strength of the results and the "purity" of the profits generated. The company has also faced criticism over its contracts with immigration police, but the executive said its technologies respect constitutional protections. Palantir also announced a strategic partnership with Nvidia. Note that Palantir shares rose by almost 7% in after-hours trading.