Palantir (PLTR) Stock: Q4 Earnings Crush Estimates on AI and Government Demand

TLDR

• Palantir reported Q4 revenue of $1.41 billion, beating Wall Street’s estimate of $1.33 billion, with 70% year-over-year growth
• Adjusted earnings per share came in at $0.25, exceeding the expected $0.23, while full-year revenue reached $4.48 billion
• U.S. commercial revenue jumped 137% to $507 million and U.S. government revenue grew 66% to $570 million
• The company issued Q1 revenue guidance of $1.532-$1.536 billion versus the $1.32 billion consensus, and fiscal 2026 guidance of $7.182-$7.198 billion versus $6.22 billion expected
• Shares rose 5% after hours Monday and jumped an additional 12% in premarket trading Tuesday

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Palantir delivered a knockout punch to Wall Street expectations when it reported fourth-quarter results on Monday. The AI and data analytics company posted numbers that left analysts scrambling to revise their models upward.

Revenue hit $1.41 billion for the quarter. That crushed the $1.33 billion consensus estimate.

The company reported adjusted earnings of $0.25 per share. Analysts had penciled in $0.23.

Palantir Technologies Inc., PLTR

Year-over-year revenue growth clocked in at 70%. That’s the kind of expansion that makes investors sit up and take notice.

Full-year revenue reached $4.48 billion. The Denver-based firm continues to ride the wave of AI adoption across enterprise and government sectors.

The stock reacted accordingly. Shares jumped 5% in after-hours trading Monday. Tuesday’s premarket session saw an additional 12% surge.

Domestic Sales Power the Beat

The real story lives in the geographic breakdown. U.S. commercial revenue exploded 137% to $507 million. Analysts had expected $479 million.

U.S. government revenue wasn’t far behind. That segment grew 66% to $570 million, beating the $522 million estimate.

Karp highlighted the government segment’s momentum. He pointed to ongoing adoption by the Department of Defense, Internal Revenue Service, and Department of Homeland Security.

Guidance Blows Past Expectations

The forward outlook might be even more impressive than the quarterly results. First-quarter revenue guidance came in at $1.532 billion to $1.536 billion. The Street had been modeling $1.32 billion.

Full-year fiscal 2026 guidance landed between $7.182 billion and $7.198 billion. Analysts were expecting $6.22 billion. That’s a massive upward revision.

William Blair analyst Louis DiPalma upgraded the stock to Outperform from Market Perform on Monday. He cited the recent sell-off as making the valuation “more reasonable.”

The shares had fallen roughly 12% over the past month. That drop came as software stocks broadly declined on concerns about AI disruption to established players.

He described Palantir as “a different species of company” with products and culture built for the current AI boom. The company’s early investments in AI technology are now paying dividends as businesses and government agencies rush to implement these tools.

Demand has become so strong that Karp noted the company has had to be selective about its engagements. “If you’re not spending it on this, you’re not spending on something that is part of keeping up with momentum,” he said.

The company scheduled an earnings call with analysts for 5 p.m. ET Monday to discuss the results in detail.

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