Palantir Technologies delivered a stunning fourth-quarter performance on Monday that sent shockwaves through Wall Street, with the AI-powered software company crushing analyst expectations across virtually every metric and issuing guidance that far exceeded market forecasts.
The Denver-based data analytics firm reported adjusted earnings per share of 25 cents, beating the consensus estimate of 23 cents, while revenue surged to $1.41 billion compared to the expected $1.33 billion. The top-line figure represents a remarkable 70% year-over-year increase from the $827.5 million recorded in the same period last year.
Net income totaled more than $608 million, or 24 cents per share, compared with just $79 million, or 3 cents per share, a year ago. The explosive growth was driven primarily by insatiable demand for artificial intelligence solutions across both government and commercial sectors.
Palantir's U.S. commercial segment emerged as the standout performer, with revenue skyrocketing 137% to $507 million, significantly exceeding analyst projections of $479 million. Meanwhile, U.S. government revenue climbed 66% to $570 million, also surpassing the estimated $522 million.
Shares of Palantir jumped 12% in premarket trading on Tuesday following the earnings release. While the stock has rallied 76% over the past twelve months, it had faced headwinds in early 2026, declining about 15% amid concerns about its elevated valuation.
CEO Alex Karp was effusive in his assessment of the results during the earnings call, describing them as "indisputably the best results that I'm aware of in tech in the last decade." The company's performance was bolstered by several major contract wins, including a landmark agreement worth up to $10 billion with the U.S. Army to support software and data infrastructure needs.
Looking ahead, Palantir's guidance stunned analysts with its optimism. The company expects first-quarter 2026 revenue between $1.532 billion and $1.536 billion, well above the $1.32 billion projected by FactSet. For the full fiscal year 2026, management guided to a range of $7.182 billion to $7.198 billion in revenue, crushing the consensus expectation of $6.22 billion and implying 61% year-over-year growth.
The company closed a record $4.26 billion in total contract value during the quarter, expanded its customer base by 34% year-over-year, and demonstrated exceptional profitability with GAAP operating margins at 41% and adjusted free cash flow margins at 56%.
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