Date: February 2, 2026
Ticker: PLTR
Topic: Q4 Earnings Summary
Earnings Summary
- Revenue: Palantir reported revenue of $1.41 billion, crushing the Wall Street consensus estimate of ~$1.34 billion. This represents a massive 70% increase year-over-year.
- EPS: Adjusted earnings per share (EPS) came in at $0.25, beating analyst expectations of ~$0.23. This is a significant jump from the $0.14 reported in the same quarter last year.
- Net Income: GAAP net income surged to $609 million, representing a robust 43% margin, proving the company’s ability to scale profitably.
- Rule of 40: The company achieved a staggering Rule of 40 score of 127%, underscoring its elite combination of growth and profitability.
- Guidance: Management raised the bar significantly, guiding for $7.18–$7.20 billion for the full year 2026, signaling sustained hyper-growth.
Financials Snapshot:
Market Context
Palantir’s financial profile this quarter reflects a company in hyper-growth mode, leveraging high demand to expand its footprint in both public and private sectors.
| (Figures in millions of dollars unless otherwise indicated) | Q4 2025 (Reported) | Q4 2024 (Last Year) | % Change YoY |
| Revenue | $1.41 B | $0.83 B | +70% |
| Adj. EPS | $0.25 | $0.14* | +79% |
| Adj. Operating Margin | 57% | 45% | +12 pts |
| Adj. Free Cash Flow | $791 M | $517 M | +53% |
| US Comm. Rev Growth* | 137% | 70% | +67 pts |
Outlook & Guidance: Q1 2026 & Beyond
US Commercial Outlook: Management expects US commercial revenue to exceed $3.1 billion in 2026, representing a growth rate of at least 115%.
Q1 2026 Revenue: Forecasted between $1.532–$1.536 billion, implying continued sequential momentum.
Full Year 2026: Revenue projected at roughly $7.18–$7.20 billion. This is significantly above the $6.3 billion analyst consensus prior to the print.
This “beat and raise” is substantial. A nearly $1 billion raise on the full-year top line indicates high visibility into their contract pipeline and suggests that the momentum seen in Q4 is not a one-off event but the start of a new growth cycle.
The market reaction was swift and euphoric. Shares of PLTR climbed over 8% in after-hours trading, reaching approximately $158.98.
This pop comes as a relief rally. Palantir stock had corrected roughly 12% in the past month amidst a broader software sell-off and fears that generative AI would render SaaS platforms obsolete. This report serves as a strong rebuttal to the “AI disruption” bear case, propelling Palantir back into the favor of growth investors. Analysts have begun upgrading the stock, citing the “reasonable” valuation following the drawdown and the undeniable strength of the US government re-acceleration.
What to Watch Next
Government Contract Velocity: Watch for announcements regarding new, large-scale federal contracts, particularly with the new administration’s focus on defense and border security.
AI Platform (AIP) Adoption: Monitor if the triple-digit commercial growth sustains in Q1, specifically looking for customer count metrics which grew 49% YoY in the US.
Valuation Concerns: With the stock popping 8%, valuation concerns will likely resurface. Can Palantir grow fast enough to justify its premium multiple?
This content is for informational purposes only and does not constitute financial advice; always conduct your own research before making investment decisions.