TLDR
- Palantir reported Q4 revenue of $1.41 billion, beating analyst estimates of $1.33 billion with impressive 70% growth
- Adjusted earnings of $0.25 per share exceeded the $0.23 consensus, driven by strong performance across both business segments
- U.S. commercial sales surged 137% to $507 million while government revenue climbed 66% to $570 million
- Q1 guidance of $1.53 billion and fiscal 2026 outlook of $7.2 billion both crushed Wall Street projections
- Stock jumped 5% after hours Monday and added 12% more in Tuesday’s premarket session
Palantir delivered a powerful earnings report Monday that left analysts revising their models upward. The AI-focused software company posted fourth-quarter results that exceeded expectations across every major metric.
Revenue came in at $1.41 billion. Wall Street had forecast $1.33 billion.
Earnings reached $0.25 per share on an adjusted basis. Consensus estimates called for $0.23.
Palantir Technologies Inc., PLTR
The 70% revenue growth rate demonstrates the company’s momentum in both government and commercial markets. Annual revenue totaled $4.48 billion for the full fiscal year.
Investors responded enthusiastically. Shares rose 5% in after-hours trading Monday before adding another 12% gain in Tuesday’s premarket.
Domestic Markets Fuel the Growth
The breakdown by geography shows where Palantir is gaining traction. U.S. commercial revenue rocketed 137% higher to $507 million, surpassing the $479 million analyst projection.
Government sales in the U.S. increased 66% to $570 million. That beat the $522 million estimate from Wall Street.
CEO Alex Karp described the results as “indisputably the best results that I’m aware of in tech in the last decade” during a CNBC interview. He emphasized the company’s deepening relationships with federal agencies.
The government client list includes the Department of Defense, Internal Revenue Service, and Department of Homeland Security. Demand has become so intense that Palantir is prioritizing U.S. engagements over new international partnerships.
Forward Outlook Exceeds Projections
The guidance might be the most impressive part of the report. First-quarter revenue is expected between $1.532 billion and $1.536 billion. Analysts had modeled $1.32 billion.
Full-year fiscal 2026 guidance ranges from $7.182 billion to $7.198 billion. The consensus estimate was $6.22 billion, making this a substantial upward revision.
William Blair upgraded Palantir to Outperform from Market Perform following the results. Analyst Louis DiPalma cited improved valuation after the stock’s recent decline.
Shares had dropped roughly 12% over the preceding month. The sell-off reflected broader concerns about AI disruption to traditional software companies.
Karp tackled those concerns during a Yahoo Finance interview. “In tech, you only have a time horizon of a couple years. You can’t say we will never be disrupted,” he acknowledged.
However, he emphasized the company’s early AI investments. “We made investments in this tech years ago, all of which we thought would be valuable,” Karp said.
He characterized Palantir as “a different species of company” designed for the current technology landscape. The products and organizational culture align perfectly with the AI adoption wave sweeping through enterprises and government agencies.
The demand environment shows no signs of cooling. Business customers are accelerating their implementation of Palantir’s AI platform, while government contracts continue expanding. Karp noted that companies failing to invest in these technologies risk falling behind competitors.
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