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Palantir just crushed Wall Street’s fourth-quarter expectations, reporting $0.25 earnings per share on $1.41 billion revenue, beating forecasts of $0.23 and $1.33 billion.
That’s a 70% year-over-year jump from the $827.5 million it posted in Q4 2025. Total annual revenue for 2025 reached $4.48 billion.
The numbers show one thing: people (especially in government) are throwing money at Palantir’s artificial intelligence tools like there’s no tomorrow.
Inside the U.S., the company pulled $570 million from government contracts and $507 million from commercial deals. Both numbers beat what analysts tracking through FactSet were expecting.
On top of that, net income hit $608 million, or $0.24 per share, a massive jump from the $79 million, or $0.03 per share, it earned last year.
Palantir raises guidance after blowout results
Looking ahead, Palantir expects between $1.532 billion and $1.536 billion in Q1 revenue. Analysts thought they’d only bring in $1.32 billion, so that new range is way above what the Street had priced in.
For fiscal 2026, the company said it sees revenue landing between $7.182 billion and $7.198 billion, easily topping the $6.22 billion Wall Street target.
CEO Alex Karp said, “These are indisputably the best results that I’m aware of in tech in the last decade.” He added, “If you’re not spending it on this, you’re not spending on something that is part of keeping up with momentum.”
Alex said demand is so strong inside the U.S. that they’ve stopped selling some new products to allies. “America has become more lethal, more confident, more divergent from our adversaries, and, quite frankly, from our allies,” he said. He also said the company has become “so engaged in the U.S.” that it’s had to put off certain international expansions.
Much of that surge in demand came from the Department of Defense. Back in summer 2025, Palantir signed a deal worth up to $10 billion with the U.S. Army to provide software and data infrastructure. Alex mentioned that U.S. government adoption alone jumped 66% year over year.
Backlash, stock pressure, and Nvidia partnership shake things up
Not everything has been smooth. Palantir faced backlash over its work with the Department of Homeland Security, especially with U.S. Immigration and Customs Enforcement, after two protesters were shot by federal agents in Minneapolis.
Alex pushed back hard. “If you are critical of ICE, you should be out there protesting for more Palantir,” he said. “Our product, actually, in its core, requires people to conform with Fourth Amendment data protections.”
On the commercial side, U.S. commercial revenue more than doubled, and total commercial deal value grew 145% year over year to $4.38 billion. Palantir also locked in a partnership with Nvidia, one of the top names in AI chips.
Retail investors were already hyped. The stock had gained 81% over the last year, but it’s now down 15% in 2026, following a rough month for AI stocks. Worries about valuations and an overheated AI market led to a pullback. In November, Michael Burry bet against Palantir and Nvidia. Alex’s response? “That move was bats— crazy” and “market manipulation.”
Palantir’s earnings call is scheduled for 5 p.m. ET today. In a letter to shareholders, Alex wrote that Palantir’s profits are “pure and uncontrived,” pushing back at critics who say AI companies aren’t focused on fundamentals. He also said their commercial software is now critical for organizing large language models.
“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.
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