Palantir Technologies (NASDAQ: PLTR) saw its shares rise more than 10% in premarket trading after reporting fourth-quarter results that beat expectations and issuing robust revenue guidance for 2026.
Earnings Beat and Strong Forward Guidance
The data analytics company posted adjusted earnings of $0.25 per share for Q4 2025, surpassing the $0.23 analysts had forecast. Revenue soared 70% year-over-year to $1.41 billion, exceeding the consensus estimate of $1.32 billion. Palantir attributed the strong performance to high demand for its AI-driven analytics tools, which are driving growth across both government and commercial sectors.
Looking ahead, Palantir anticipates first-quarter revenue of $1.532 billion to $1.536 billion, well above the projected $1.33 billion. For the full year, the company expects revenue between $7.182 billion and $7.198 billion. The forecast exceeds the analyst consensus estimate of $6.28 billion.
U.S. Revenue Growth and Expanding Deal Activity
The U.S. market accounted for a major portion of revenue gains, with total domestic sales reaching $1.08 billion, up 93% year-over-year. In particular, commercial revenue surged 137% to $507 million, while government contracts rose 66% to $570 million.
Palantir’s growth was also evident in its deal activity. During the quarter, the company finalized 180 contracts valued at $1 million or more. Among these, 84 deals surpassed $5 million, including 61 that exceeded $10 million. Consequently, total contract value reached $4.26 billion, up 138% from the prior year.
CEO Alex Karp called the results “the strongest in tech over the past decade,” adding that AI advancements are improving operational efficiency and enabling the company to scale more effectively.
Analyst Ratings and Stock Performance
Analyst reactions were mixed. RBC Capital maintained an “Underperform” rating on the stock with a $50 target. In contrast, William Blair kept an “Outperform” rating, reflecting a more positive outlook. Meanwhile, Baird upgraded the stock from “Neutral” to “Outperform” and set a $200 target.
Despite the premarket surge, Palantir shares (NASDAQ: PLTR) remain down 17% year-to-date, trading below the 52-week high of $207.52. However, over the past 12 months, the stock has risen more than 80%, with the company now valued at $352.2 billion.
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