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PLTR stock: Palantir’s latest earnings report landed with force on Wall Street, underscoring how quickly demand for artificial intelligence software is reshaping both government and commercial spending.
Palantir Technologies (PLTR) shares increased by nearly 6% in after-hours trading on Monday following the enterprise software company's fourth-quarter results. The company posted record contracts, strong profitability, and issued a bullish 2026 revenue outlook, sending shares higher after hours despite ongoing valuation and political debates.
The Denver-based company not only beat fourth-quarter expectations but also delivered an aggressive growth outlook that surprised even optimistic analysts. Investors responded swiftly, pushing shares higher after hours.
At the center of the surge is Palantir’s deepening role in U.S. government operations and a sharp acceleration in commercial adoption, as more organizations race to deploy AI tools at scale.
ALSO READ: Quote of the Day by Bruce Lee: 'Mistakes are always forgivable,…'—Inspiring quotes by the renowned martial artist
Palantir Technologies Inc. (NASDAQ: PLTR) reported fourth-quarter revenue of $1.407 billion, comfortably ahead of Wall Street estimates. That figure marked a 70% increase from the same period a year earlier, when revenue stood at $827.5 million. Adjusted earnings per share came in at $0.25, beating the $0.23 expected by analysts.
U.S. revenue was the clear engine of growth. Total U.S. sales jumped 93% year over year to $1.076 billion. Within that, U.S. commercial revenue surged 137% to $507 million, while U.S. government revenue climbed 66% to $570 million, both exceeding analyst forecasts, as per several reports by CNBC, Business Wire and Yahoo Finance.
The company also posted strong profitability. GAAP net income reached $609 million, representing a 43% margin, compared with $79 million, or 3 cents per share, a year ago. Cash from operations totaled $777 million, and adjusted free cash flow came in at $791 million.
ALSO READ: Word of the Day: Crestfallen
CEO Alex C. Karp pointed to the accelerating adoption of Palantir’s AI-driven platforms across American institutions. “Palantir’s Rule of 40 score is now an incredible 127%,” Karp said, highlighting the balance between growth and profitability. He noted that U.S. commercial revenue alone grew 137% year over year.
"Last quarter, our U.S. revenue grew 93% year-over-year and U.S. commercial revenue grew 137% year-over-year. We are also announcing a 2026 revenue growth guide of 61% year-over-year. We are an n of 1, and these numbers prove it. Palantir is alone in 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," he said. Karp described the company’s strategy as singularly focused.
ALSO READ: Word of the Day: Woebegone
Demand from the U.S. government remains a major pillar. Karp said adoption of Palantir’s tools has expanded sharply across federal agencies, a segment that saw 66% growth in the quarter. America has become more lethal, more confident, more divergent from our adversaries, and, quite frankly, from our allies,” he said, as per several reports by CNBC, Business Wire and Yahoo Finance.
Beyond revenue, Palantir posted record contract activity. During the quarter, the company closed 180 deals worth at least $1 million, including 61 deals of $10 million or more. Total contract value reached a record $4.262 billion, up 138% year over year.
U.S. commercial total contract value alone hit $1.344 billion, while remaining U.S. commercial deal value rose 145% to $4.38 billion. Customer count increased 34% year over year, underscoring how broadly Palantir’s software is spreading across industries.
Much of the government demand has come from the Department of Defense. Karp confirmed that Palantir signed an agreement last summer worth up to $10 billion with the U.S. Army to support software and data needs.
Looking ahead, Palantir offered guidance that far exceeded expectations. For the first quarter, the company expects revenue between $1.532 billion and $1.536 billion, well above the $1.32 billion projected by analysts.
For fiscal 2026, Palantir guided to revenue between $7.182 billion and $7.198 billion, topping the $6.22 billion expected by FactSet. Karp called the quarter’s performance “indisputably the best results that I’m aware of in tech in the last decade” during an interview with CNBC.
“If you’re not spending it on this, you’re not spending on something that is part of keeping up with momentum,” he added, referring to AI investment.
Palantir shares jumped more than 8% after hours following the report. The reaction came after a volatile stretch for the stock, which had fallen roughly 12% over the past month amid broader concerns about software valuations and an AI-driven market bubble.
Despite the rally, the stock remains a topic of debate. Some analysts have flagged its lofty multiple, while others see recent declines as a reset. William Blair analyst Louis DiPalma upgraded Palantir to Outperform, calling its valuation “more reasonable” after the drawdown.
Retail investors have continued to show enthusiasm, with the stock up 81% over the past year, even as it faced pressure earlier in 2026.
ALSO READ: Quote of the Day by Oprah Winfrey: 'The more you praise and celebrate…'—Here are some inspiring quotes by the incredible philanthropist on her birthday
Palantir’s expanding government work has also drawn criticism. In recent weeks, the company faced backlash over its work with the Department of Homeland Security and U.S. Immigration and Customs Enforcement. Responding to criticism, Karp said, “If you are critical of ICE, you should be out there protesting for more Palantir.” He added that the company’s products require compliance with Fourth Amendment data protections.
In a shareholder letter, Karp described Palantir’s profitability as “pure and uncontrived,” emphasizing a focus on fundamentals amid rising pressure on AI companies to prove sustainable value.
“Anything lacking a zealous focus on the value being created by these technical systems, the mice that the cat actually catches, will ultimately fade to grey and be forgotten,” he wrote, as per a report by CNBC.
Yes. Revenue and adjusted earnings per share both came in above analyst estimates.
Why did Palantir shares rise after earnings?
Investors reacted positively to strong U.S. growth and a 2026 revenue forecast that exceeded expectations.
PLTR stock price
Budget 2026 Highlights: Here's the fine print
Palantir Technologies (PLTR) shares increased by nearly 6% in after-hours trading on Monday following the enterprise software company's fourth-quarter results. The company posted record contracts, strong profitability, and issued a bullish 2026 revenue outlook, sending shares higher after hours despite ongoing valuation and political debates.
The Denver-based company not only beat fourth-quarter expectations but also delivered an aggressive growth outlook that surprised even optimistic analysts. Investors responded swiftly, pushing shares higher after hours.
At the center of the surge is Palantir’s deepening role in U.S. government operations and a sharp acceleration in commercial adoption, as more organizations race to deploy AI tools at scale.
ALSO READ: Quote of the Day by Bruce Lee: 'Mistakes are always forgivable,…'—Inspiring quotes by the renowned martial artist
What drove Palantir’s standout Q4 earnings?
Palantir Technologies Inc. (NASDAQ: PLTR) reported fourth-quarter revenue of $1.407 billion, comfortably ahead of Wall Street estimates. That figure marked a 70% increase from the same period a year earlier, when revenue stood at $827.5 million. Adjusted earnings per share came in at $0.25, beating the $0.23 expected by analysts.
U.S. revenue was the clear engine of growth. Total U.S. sales jumped 93% year over year to $1.076 billion. Within that, U.S. commercial revenue surged 137% to $507 million, while U.S. government revenue climbed 66% to $570 million, both exceeding analyst forecasts, as per several reports by CNBC, Business Wire and Yahoo Finance.
The company also posted strong profitability. GAAP net income reached $609 million, representing a 43% margin, compared with $79 million, or 3 cents per share, a year ago. Cash from operations totaled $777 million, and adjusted free cash flow came in at $791 million.
ALSO READ: Word of the Day: Crestfallen
Why is Palantir’s U.S. business growing so fast?
CEO Alex C. Karp pointed to the accelerating adoption of Palantir’s AI-driven platforms across American institutions. “Palantir’s Rule of 40 score is now an incredible 127%,” Karp said, highlighting the balance between growth and profitability. He noted that U.S. commercial revenue alone grew 137% year over year.
"Last quarter, our U.S. revenue grew 93% year-over-year and U.S. commercial revenue grew 137% year-over-year. We are also announcing a 2026 revenue growth guide of 61% year-over-year. We are an n of 1, and these numbers prove it. Palantir is alone in 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," he said. Karp described the company’s strategy as singularly focused.
ALSO READ: Word of the Day: Woebegone
Demand from the U.S. government remains a major pillar. Karp said adoption of Palantir’s tools has expanded sharply across federal agencies, a segment that saw 66% growth in the quarter. America has become more lethal, more confident, more divergent from our adversaries, and, quite frankly, from our allies,” he said, as per several reports by CNBC, Business Wire and Yahoo Finance.
How strong is Palantir’s deal pipeline?
Beyond revenue, Palantir posted record contract activity. During the quarter, the company closed 180 deals worth at least $1 million, including 61 deals of $10 million or more. Total contract value reached a record $4.262 billion, up 138% year over year.
U.S. commercial total contract value alone hit $1.344 billion, while remaining U.S. commercial deal value rose 145% to $4.38 billion. Customer count increased 34% year over year, underscoring how broadly Palantir’s software is spreading across industries.
Much of the government demand has come from the Department of Defense. Karp confirmed that Palantir signed an agreement last summer worth up to $10 billion with the U.S. Army to support software and data needs.
What does Palantir’s 2026 outlook signal?
Looking ahead, Palantir offered guidance that far exceeded expectations. For the first quarter, the company expects revenue between $1.532 billion and $1.536 billion, well above the $1.32 billion projected by analysts.
For fiscal 2026, Palantir guided to revenue between $7.182 billion and $7.198 billion, topping the $6.22 billion expected by FactSet. Karp called the quarter’s performance “indisputably the best results that I’m aware of in tech in the last decade” during an interview with CNBC.
“If you’re not spending it on this, you’re not spending on something that is part of keeping up with momentum,” he added, referring to AI investment.
How are investors reacting after earnings?
Palantir shares jumped more than 8% after hours following the report. The reaction came after a volatile stretch for the stock, which had fallen roughly 12% over the past month amid broader concerns about software valuations and an AI-driven market bubble.
Despite the rally, the stock remains a topic of debate. Some analysts have flagged its lofty multiple, while others see recent declines as a reset. William Blair analyst Louis DiPalma upgraded Palantir to Outperform, calling its valuation “more reasonable” after the drawdown.
Retail investors have continued to show enthusiasm, with the stock up 81% over the past year, even as it faced pressure earlier in 2026.
ALSO READ: Quote of the Day by Oprah Winfrey: 'The more you praise and celebrate…'—Here are some inspiring quotes by the incredible philanthropist on her birthday
What controversies surround Palantir’s growth?
Palantir’s expanding government work has also drawn criticism. In recent weeks, the company faced backlash over its work with the Department of Homeland Security and U.S. Immigration and Customs Enforcement. Responding to criticism, Karp said, “If you are critical of ICE, you should be out there protesting for more Palantir.” He added that the company’s products require compliance with Fourth Amendment data protections.
In a shareholder letter, Karp described Palantir’s profitability as “pure and uncontrived,” emphasizing a focus on fundamentals amid rising pressure on AI companies to prove sustainable value.
“Anything lacking a zealous focus on the value being created by these technical systems, the mice that the cat actually catches, will ultimately fade to grey and be forgotten,” he wrote, as per a report by CNBC.
FAQs
Did Palantir beat Wall Street expectations in Q4?Yes. Revenue and adjusted earnings per share both came in above analyst estimates.
Why did Palantir shares rise after earnings?
Investors reacted positively to strong U.S. growth and a 2026 revenue forecast that exceeded expectations.
